The problem of scarcity:
a. exists because resources are limited relative to wants
b. exists because resources are unlimited relative to wants.
c. can be eliminated through appropriate government intervention into markets.
d. does not exist in communist societies.
a
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Which of the following is an example a lack of self-control that contradicts the conclusions of standard economic analysis?
a. Eating more food at an all-you-can-eat buffet b. Playing video games all night even with an exam the following morning that will determine your semester grade c. Decreasing the purchase of steak if the price increases 25% d. all of the above
Assume an individual has 14 hours per day for either work or leisure. Using an indifference curve graph, derive an individual's labor supply curve. In your answer, explain what might cause the individual's labor supply curve to eventually bend backwards.
What will be an ideal response?
One difference between the long run and the short run in a perfectly competitive industry is that:
A. firms necessarily earn zero economic profit in the long run but may earn positive or negative economic profit in the short run. B. economic profit in the short run is always greater than it is in the long run. C. firms necessarily earn positive economic profit in the long run but may earn positive or negative economic profit in the short run. D. economic profit in the long run is always greater than it is in the short run.
A demand-pull inflation spiral results when
What will be an ideal response?