Scarcity means
a. unlimited wants and unlimited available resources.
b. unlimited wants and limited available resources.
c. limited wants and limited available resources.
d. limited wants and unlimited available resources.
b. unlimited wants and limited available resources.
You might also like to view...
Suppose that when one person consumes a good, it is possible to provide it to others at no additional cost. Such a good is called
a. nonexcludable. b. nonrivalrous. c. a free good. d. a Clarke good.
The number of computers produced per day in Domium is 1,000 more than the number of computers produced in Chromium. Domium and Chromium have the same number or workers and have the same opportunity costs for producing computers
Which of the following statements is true? A) Domium has an absolute advantage in producing computers. B) Chromium has an absolute advantage in producing computers. C) Chromium has a comparative advantage in producing computers. D) Domium has a comparative advantage in producing computers.
The CPI: a. includes fewer goods and services than the GDP deflator
b. generally rises substantially slower than the GDP deflator during inflationary conditions. c. ignores imported goods purchased by consumers. d. is the broadest generally reported measure of inflation.
Suppose the factory Afro-Puffs Inc. produces wigs. As a by-product of this wig production, they also produce dangerous emissions of toxic gases (as a result of the strong glue used to hold the hair in place). The De-Lite car factory, down the road, experiences a negative externality from this production process. Suppose that the supply curve (private marginal costs) for the wig factory is X = (2/5)P - 2, and it faces a market demand of X d = 15 - P/2. The marginal damages caused by the production of wigs can be written as X = P - 1/2.
(a) Find the equilibrium price and quantity in the market for wigs. (b) Find the socially optimal level of wigs and the corresponding price. (c) How much should the wig factory be taxed per wig?