What do economists mean when they say that economic resources or factors of production are scarce or limited in supply?
Please provide the best answer for the statement.
They mean that resources are not so abundant that they may be used freely for everything everyone wants. There are not enough resources available to meet all of society’s unlimited economic wants.
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When two firms in a perfectly competitive market seek to maximize profit in the long run, they eventually end up:
A) producing at a suboptimal level. B) minimizing total cost of production. C) earning the same level of profits. D) producing the same level of output.
If human capital was included in the measurement of wealth, the measurement of wealth would be
A) more equal and more accurate. B) more equal and less accurate. C) less equal and more accurate. D) less equal and less accurate.
In the textbook model of endogenous growth, the production function is modeled as
A) Y = AK. B) Y = C + I + G + NX. C) Y = X. D) Y = S - I.
Which of the following games might a risk-averse person play?
a. a game where she has a 70 percent chance of winning $1 and a 30 percent chance of losing $1 b. a game where she has a 60 percent chance of winning $100 and a 40 percent chance of losing $100 c. a game where she has a 60 percent chance of winning $2 and a 40 percent chance of losing $1 d. All of the above are correct.