Which of the following statements is true regarding scarcity?
A) An economy experiences scarcity only when the incomes of its citizens decline.
B) All citizens in a wealthy economy experience scarcity.
C) Scarcity affects poorer countries only.
D) Poor people experience scarcity more often than do rich people.
E) Scarcity could be overcome if people would make all choices in the social interest.
B
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In determining the optimal capital budget, one should choose those project's whose ____ exceeds the firm's ____ cost of capital
a. internal rate of return, average b. internal rate of return, marginal c. internal rate of return, historic d. average rate of return, marginal e. none of the above
The national budget deficit or budget surplus is measured _____________.
a. annually b. quarterly c. biannually d. monthly
Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real GDP and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. There is not enough information to determine what happens to these two macroeconomic variables. b. Real GDP falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). c. Real GDP rises, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). d. Real GDP rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). e. Real GDP falls, and net nonreserve-related international borrowing/lending becomes more negative (or less positive).
Major economies around the world, such as the U.S. and Great Britain, are largely independent of one another, and thus their economic fluctuations bear little relationship to one another
Indicate whether the statement is true or false