Whether studying the output of the U.S. economy or how many classes a student will take, a unifying concept is that:
A. both wants and resources are unlimited, so trade-offs are unnecessary.
B. wants are limited and resources are unlimited, so trade-offs are unnecessary.
C. wants are unlimited and resources are scarce, so trade-offs have to be made.
D. wants are limited and resources are unlimited, so trade-offs have to be made.
Answer: C
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What did China create to allow more international trade?
A) Special economic zones B) Foreign exchange centers C) More open and transparent government meetings D) New educational efforts
Movie theatres decided to increase the price of movie tickets. Holding other factors constant, what happens to the demand for popcorn in the movie theatres?
a. Demand for popcorn shifts to the left because popcorn and movies are substitute goods. b. Demand for popcorn shifts to the left because popcorn and movies are complementary goods. c. Demand for popcorn shifts to the right because popcorn and movies are substitute goods. d. Demand for popcorn shifts to the right because popcorn and movies are complementary goods.
What establishes the value of fiat money?
a. Our collective trust and confidence that the central government, which decrees that money cannot be refused as payment for debt. b. Gold and silver owned by the large commercial banks. c. The central government authority's promise to redeem fiat money for gold or silver upon demand. d. None of the above.
Because monopolistically competitive firms produce differentiated products, each firm
a. faces a demand curve that is horizontal. b. faces a demand curve that is vertical. c. has no control over product price. d. has some control over product price.