In a free market economy, people are free to manufacture buses out of gold, rather than steel. So why aren't buses made out of gold?
A) Although it meets all economic laws, gold buses would violate the laws of physics and mechanical engineering.
B) It is ridiculously unprofitable to make gold buses.
C) The AFL-CIO wouldn't allow buses to be made from gold.
D) There's only one individual with a patent on gold buses, and he refuses to sell it to other potential manufacturers.
Question 2
The figure above shows the U.S. demand and U.S. supply curves for cherries. At a world price of 2 per pound once international trade occurs, the total exports of cherries from the United States to other nations equals
A) 200,000 pounds.
B) 400,000 pounds.
C) 600,000 pounds.
D) 800,000 pounds.
E) 0 pounds.
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