Which of the following statements about scarcity is true?
A) Scarcity refers to the situation in which unlimited wants exceed limited resources.
B) Scarcity is not a problem for the wealthy.
C) Scarcity is only a problem when a country has too large a population.
D) Scarcity only arises when there is a wide disparity in income distribution.
Answer: A
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The evidence of building costs in the 1920s shows that the decline in total construction after 1926
(a) reflected the sharp increase in costs as the boom gathered strength. (b) occurred when building costs remained stable. (c) occurred in the presence of sharply falling costs that anticipated the 1929 crash. (d) was a result of the contractionary monetary policies of the Fed.
Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process: Name of CompanyRevenuesCost of Purchased InputsCitrus Growers Inc.$0.750Florida Jam Company$2.00$0.75The Corner Store$2.50$2.00 What is the value added of Florida Jam Company?
A. $2.00 B. $0.75 C. $1.25 D. $0.50
The term externalities refers to
A. The negative costs and positive benefits of a market activity borne by a third party. B. Only negative costs of a market activity borne by a third party. C. Only positive benefits of a market activity borne by a third party. D. None of the choices are correct.
Prices provide the rationing function best when
A) prices are flexible. B) prices are inflexible. C) they are used in conjunction with queuing. D) price controls are in place and ration coupons are used too.