To an economist, scarcity means that:
a. it is very time-consuming to find a good.
b. at a zero price, the available quantity of a good is insufficient to meet people's wants.
c. a good is unavailable even at very high prices.
d. at the current market price, the amount available is less than the amount that people want and are willing to pay for.
e. resources are unlimited but people's desires are limited.
b
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Which Federal Reserve Bank president is always on the Federal Open Market Committee?
A) New York B) Chicago C) St. Louis D) Boston
John Maynard Keynes disagreed with the classical economists because he believed that
A) wages and prices adjust slowly. B) international trade plays a major role in the macroeconomy. C) government intervention in the economy cannot reduce business cycles. D) unemployment will be eliminated quickly by the invisible hand of the market.
The present value of $1 payable in two years is
a. $1. b. $1/(1 + 2r). c. $1/(1 ? 2r). d. $1/(1 + r)2.
In the simple Keynesian model, there are three simplifying assumptions. One of these assumptions is:
A) no consumption B) no investment C) no exports or imports D) a and b E) a, b, and c