Which of the following describes the reason why scarcity exists?
A. Governments make bad economic decisions.
B. The gap between the rich and the poor is too wide.
C. Wants exceed the resources available to satisfy them.
D. There is too much unemployment.
C Answer C uses the definition of scarcity on page 2.
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Use the following graph to answer the next question.
If aggregate demand curve shifts from AD2 to AD1, the effect on real GDP will be a decrease from ________.
A. Q3 to Q4 B. Q2 to Q4 C. Q3 to Q1 D. Q2 to Q1
If a monopolist can sell 2 units at price of $200 per unit and 3 units at a price of $180 per unit, its marginal revenue at an output of 3 is
A) $-20.00. B) $80.00. C) $140.00. D) $180.00.
In the short-run, only a limited number of new firms may enter a perfectly competitive market
a. True b. False Indicate whether the statement is true or false
One surprising thing about the U.S. money stock is that
a. banks hold so much currency relative to the public. b. the public holds so much currency relative to banks. c. there is so little currency per person. d. there is so much currency per person.