The fact that a higher standard of living tomorrow can only be achieved by sacrificing consumption today is an illustration of the:
A. principle of comparative advantage
B. principle of increasing opportunity costs
C. scarcity principle
D. equilibrium principle
Difficulty: Easy
Answer: C. scarcity principle
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The money demand curve will shift to the right if:
A. ATM machines are introduced. B. real income increases. C. the nominal interest rate increases. D. the price level decreases.
The main difference between stabilization policies and structural reform policies is that stabilization policies
A) focus on microeconomic issues and structural reform policies focus on the macroeconomic environment. B) focus on macroeconomic issues and structural reform policies focus on the microeconomic environment. C) are rarely used by reform governments; they prefer to use structural reform policies in their place. D) have smaller economic impacts than structural reform policies. E) create less unemployment than structural reform policies.
Economists have found that as a nation's per capita real Gross Domestic Product (GDP) increases
A) the rate of population growth declines. B) the rate of population growth experiences dramatic increases. C) there is no effect on population growth. D) the rate of population growth increases at the same rate as economic growth.
Which of the following is NOT a measure of the general level of prices?
A. GDP Deflator B. Consumer Price Index C. Producer Price Index D. Personal Sales Deflator Index