In a market economy, scarcity of resources is most clearly reflected in
a. supply.
b. demand.
c. market prices.
d. the stock of the resource.
c
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An asset that can be easily disposed of without high transactions costs and with relative certainty as to its value is
A) solid. B) liquid. C) M1. D) M2.
The percentage of disposable personal income that is saved is the
A. personal saving rate. B. MPS. C. MPC. D. personal investment rate.
According to this Application, tariffs in the United States are very high on textiles, apparel items and footwear. These tariffs disproportionately impact lower-income households because
A) these products represent a higher fraction of consumption of lower-income households than higher-income households. B) the tariffs are only applicable to lower-income households. C) higher-income households tend to purchase products produced in the United States, which are not subject to tariffs. D) lower-income households tend to purchase more of these items than do higher-income households.
Because most gas stations are small relative to the market in which they operate and gasoline is fairly homogeneous, the market for gasoline is considered to be perfectly competitive
Indicate whether the statement is true or false