What do economists mean when they state that a good is scarce?
What will be an ideal response?
The amount of that good that people would like to have exceeds the supply that is freely available
You might also like to view...
One of the economic costs of holding currency is that
A) it fulfills no transactions role. B) it fulfills no precautionary role. C) its real value always increases. D) it earns no interest income.
Use the equation Qd = 5,000 - 15P + 50A + 3Px - 4I, (2,117 ) (2.7 ) (15 ) (2 ) (3 )
where Qd = Quantity Demanded, P = Good Price, A = Advertising Expenditures, Px = Price of a Competitive Good, A = Advertising Expenditures, I = Average Monthly Income, and the Standard Errors of the Regression Coefficients are shown in Parentheses. Calculate the t-statistics for each variable and explain what inferences can be drawn from them. If R2 of this equation is 0.25, what inference can be drawn from it?
In autarky,
a. each country's consumption possibilities are the same as its production possibilities b. equilibrium is attained with the maximum gains from specialization and trade c. equilibrium is attained with the maximum amount of international trade d. a nation has such a high standard of living that there are technically no poor people e. a nation is governed by an individual with absolute authority
In the open-economy macroeconomic model, at the equilibrium real interest rate, the amount that people (including government) want to save equals desired quantities of domestic investment and net capital outflow
a. True b. False Indicate whether the statement is true or false