Economic goods are:
a. only those commodities priced in monetary terms
b. scarce products that are created from scarce resources.
c. the opposite of normative economic goods.
d. not subject to scarcity.
b
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Nonexcludable goods tend to be undersupplied because:
A. the free rider problem persists. B. people do not pay the true value of the good. C. people rarely willingly pay for something they could get for free, regardless of how much they value it. D. All of these statements are true.
As long as P>AVC, a monopolist maximizes profit by producing the quantity at which
a. MC=P. b. MC=MR. c. MR=P. d. MR=ATC.
The residents of country A earn $500 million of income from abroad. Residents of other countries earn $200 million in country A. These earnings are accounted for in country A's
a. GNP which is larger than GDP in country A. b. GNP which is smaller than GDP in country A. c. GDP which is larger than GNP in country A. d. GDP which is smaller than GNP in country A.
The short-run aggregate supply curve
A. shows the relationship between aggregate production and the price level holding constant potential GDP and all resource prices .
B. shows a negative relationship between the price level and real national income holding constant potential GDP and all resource prices.
c. shows what each producer is willing and able to produce at each level of income holding constant potential GDP and all resource prices.
d. becomes vertical if there is excess production capacity within the economy.