Scarcity is a concept that implies that choices must be made

a. True
b. False
Indicate whether the statement is true or false


True

Economics

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Money solves the dilemma of a double coincidence of wants by serving as a

A) unit of account. B) medium of exchange. C) symbol of value. D) store of value.

Economics

Which of the following would cause both the equilibrium price and equilibrium quantity of cotton (assume that cotton is a normal good) to increase?

A) a drought that sharply reduces cotton output B) an increase in consumer income C) a decrease in consumer income D) unusually good weather that results in a bumper crop of cotton

Economics

The primary use of derivative contracts is:

A. for IRA and other pension plans since they only have value well into the future. B. to add to the profits an investor obtains through information asymmetry. C. to shift risk among investors. D. for investors seeking a greater return by taking greater risk.

Economics

An economic activity in which benefits or costs affect third parties is called

A. a third-party good. B. an externality. C. the exclusion principle. D. a public good.

Economics