In economics, scarcity means that
A. A shortage of a particular good will cause the price to fall.
B. The market mechanism has failed.
C. Society's desires exceed resources available.
D. A production possibilities curve cannot accurately represent the trade-off between two goods.
Answer: C
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If Gambinia has many workers but very little land and even less productive capital, then, following the Heckscher-Ohlin model, in order to improve the country's economic welfare, the Gambinian government should
A) engage in free trade. B) protect the capital-intensive product. C) protect the land-intensive product. D) protect the labor-intensive product. E) discontinue all international trade.
If businesses expect the economic activity to expand
A) the planned investment function relating investment to the interest rate will shift to the left. B) the planned investment function relating investment to the interest rate will remain unchanged, but will move downward along the curve. C) the planned investment function relating investment to the interest rate will steepen. D) the planned investment function relating investment to the interest rate will shift to the right.
One reason why better-looking workers may have higher earnings is that physical attractiveness is correlated with intelligence
a. True b. False Indicate whether the statement is true or false
An investment is profitable as long as its internal rate of return is equal to the rate of interest
Indicate whether the statement is true or false