Scarcity exists when:
A) a choice must be made among two or more alternatives.
B) we face the notion of "all other things unchanged."
C) countries and people find themselves facing poverty.
D) the notions of normative economics come into play.
Answer: A) a choice must be made among two or more alternatives.
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Which of the following is an objective of fiscal policy?
A) high rates of economic growth B) discovering a cure for AIDs C) energy independence from Middle East oil D) health care coverage for all Americans E) homeland security
Transfer payments represent income that is not earned but received by individuals
a. True b. False Indicate whether the statement is true or false
The equilibrium exchange rate between two currencies is determined by the supply and demand in the
A. traded goods markets B. stock exchange markets C. money markets D. foreign exchange markets
All else held constant, as additional firms enter an industry
A. less output is available at each given price. B. more output is available at each given price. C. the same output is available at each given price. D. output could increase or decrease at each given price.