What is scarcity, and why is it a fundamental concept in economics?
What will be an ideal response?
Scarcity refers to a situation in which unlimited wants exceed the limited resources available to fulfill those wants. Scarcity is a fundamental concept in economics because economics is the study of the choices people make to attain their goals, given their scarce resources.
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If the exchange rate rises as shown by the arrow in the figure above, the price of imports coming into the United States will be ________, Americans will supply ________ dollars in order to get the foreign exchange to purchase ________ imported goods
. A) higher; more; more B) lower; more; more C) lower; fewer; more D) lower; fewer; fewer E) higher; fewer; more The figure above shows supply curves of dollars in the foreign exchange market.
The incidence of absolute poverty is reduced by
A) annual recalculations of the poverty line. B) government welfare programs. C) economic growth. D) the size of the budget deficit.
If banks hold excess reserves, then the increase in the money supply that is brought about by an increase in demand deposits will not be as large as its potential
Indicate whether the statement is true or false
In periods of restrictive monetary policy, which of the following industries are likely to feel a disproportionately large impact of the policy?
A. The auto industry. B. Soft drink companies such as Coke and Pepsi. C. Cell phone service providers. D. Fast-food restaurants.