How is scarcity related to competition?
A) Competition is an effect of scarcity.
B) Scarcity is an effect of competition.
C) Both scarcity and competition are effects of a rationing device.
D) Both scarcity and competition are effects of opportunity cost.
E) Scarcity produces disutility and competition produces utility.
A
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When an economist states that a firm is earning zero economic profit, this statement implies that the firm
a. will be forced out of business unless market conditions change. b. is doing as well as it could in any other line of business. c. is earning a zero rate of return on its assets. d. could earn a higher rate of return in other industries.
Compared to Canada, France, Germany, Switzerland, and the United Kingdom, the United States
A. had the highest spending per person and the shortest life expectancy in 2016. B. had the lowest spending per person and the shortest life expectancy in 2016. C. had the lowest spending per person and the longest life expectancy in 2016. D. had the highest spending per person and the longest life expectancy in 2016.
When the required reserve ratio is lowered,
a. the money multiplier increases, and the amount of excess reserves increases in the banking system. b. the money multiplier decreases, and the amount of excess reserves increases in the banking system. c. the money multiplier decreases, and the amount of excess reserves decreases in the banking system. d. the money multiplier increases, and the amount of excess reserves decreases in the banking system. e. there is no change in either the money multiplier or the amount of excess reserves in the banking system.
The long-run average total cost curve represents:
a. the maximum cost of producing any level of output when all the factors are fixed. b. the lowest cost of producing any level of output when all the factors are variable. c. the maximum cost of producing any level of output when all the factors are variable. d. the lowest cost of producing any level of output when all the factors are fixed. e. the lowest cost of producing any level of output when at least one factor is fixed.