In every economic system, choices must be made because resources are:
A)Unlimited, but economic wants are limited
B)Limited, and so are economic wants
C) Finite, but economic wants are insatiable
D)infinite, but econmic wants are finite
C) Finite, but economic wants are insatiable
You might also like to view...
Economies of scale occur where
a. long-run average cost falls as new firms enter the industry b. short-run average cost falls as new firms enter the industry c. long-run average cost falls as one firm expands plant size d. short-run average cost falls as one firm expands plant size e. long-run average cost rises as one firm expands plant size
A marginal propensity to consume of 0.75 and a marginal propensity to import of 0.05 are associated with an open-economy spending multiplier of 3.33
a. True b. False Indicate whether the statement is true or false
Goodyear produces tires for automobiles, 50,000 in all. Suppose 40,000 go on new cars and are sold as part of each car, while the other 10,000 are produced as replacement tires and are sold individually. How many tires would be counted in current GDP?
a. 50,000 . because everything produced is counted b. 40,000 because only the ones on new cars are counted c. 10,000 because 40,000 will be counted in the value of the new cars d. 0 because they are all intermediate goods e. 10,000 because they are the only "final" goods and services in the total
Suppose anyone with a driver's license is capable of supplying one trip from the airport to the downtown business center on any given day. The long-run supply curve of such trips is horizontal at p = $50, which is the average cost of such trips. Suppose daily demand is Q = 1000 - 10p. Calculate the change in consumer surplus, producer surplus and social welfare if the city government requires
those people supplying such trips to possess a special license, and the government will issue only 300 licenses. What will be an ideal response?