Scarcity means that there is less of a good or resource available than people wish to have
a. True
b. False
Indicate whether the statement is true or false
True
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According to this Application, for approximately 12 million homeowners in 2012, the amount owed on mortgages was higher than the actual value of the homes. Homeowners who find themselves in this situation are said to be
A) "financially grounded." B) "subprime borrowers." C) "underwater." D) "shadow mortgage holders."
If a firm's average variable cost curve is rising, its marginal cost must exceed its average variable cost
a. True b. False Indicate whether the statement is true or false
Central planners
A) know more than the market. B) know less than the market knows. C) process information more efficiently than the market. D) can predetermine equilibrium prices.
A conclusion of the theory of rational expectations is that, in the short run, the impact of discretionary fiscal policies designed to shift the AD curve will:
a. result in no net change in AD once people's expectations adjustments have been accounted for b. shift AD in the opposite direction intended once people's expectations adjustments have been accounted for. c. be anticipated and compensated for, causing no significant effect on real or nominal GDP or employment. d. have to be a surprise to change real output in the intended direction.