As defined in economics, why does scarcity exist?
a. Human wants exceed available resources.
b. Resources used in production are expensive.
c. Resources are desirable and unlimited.
d. The supply-demand relationship breaks down.
a. Human wants exceed available resources.
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An oligopolistic situation involving the possible creation of barriers to entry would probably best be modeled by a
A) cooperative game. B) Prisoners' Dilemma game. C) Battle of the Sexes game. D) repeated game. E) sequential game.
An externality exists when
A) goods are sold in specific geographic locations. B) some of the benefits or costs associated with a good are borne by third parties. C) the government taxes a good. D) the government subsidizes a good.
A factory is an example of:
a. capital. b. scarcity. c. an enterprise. d. land resources. e. output.
A disadvantage associated with grouping jobs on the basis of functional specialty is that
A. managers tend to ignore the interdependencies among units that might lower a firm's value. B. managers rely on implicit understanding and informal relationships. C. employees have to seek ratification from managers for initiation and implementation of decisions. D. employees concentrate more on achieving departmental goals rather than customer satisfaction.