Which of the following is a question that an economist would use to break down a problem?
A. Does the decision maker have a track record of being rational?
B. Will the average income per person for the society increase?
C. Is there a scarce resource that will be allocated?
D. How might one person feel about the solution to the problem?
Answer: C
You might also like to view...
The table below shows data for Brazil
2006 2007 Real GDP growth rate 3.8 5.4 Inflation rate 4.2 3.7 Assuming the rate of velocity change is constant A) the growth rate of money increased between 2006 and 2007. B) the money growth rate was -0.4 percent in 2006. C) the growth rate of nominal GDP was 1.7 percent in 2006. D) the demand for money curve shifted leftward in 2006.
If a natural monopolist is unregulated, then
A) the monopoly will produce efficiently from society's point of view. B) the monopoly will produce inefficiently from society's point of view. C) the monopolist will be earning just a normal rate of return on investment. D) the monopolist will determine the profit maximizing quantity by equating marginal cost to the demand curve.
When using the income approach to measure GDP, the largest share of GDP generally consists of
A) interest income. B) labor income. C) indirect taxes. D) profits. E) capital income.
Refer to Figure 9.3. If the market is in equilibrium, total producer surplus is
A) $2. B) $3. C) $200. D) $400. E) $600.