If an economy is operating efficiently and with full employment, the production of more of one commodity will necessarily lead to less of something else being produced because of:
A) the unlimited wants of people.
B) perfectly adaptability of resources in the production of various goods.
C) scarcity.
D) the lack of money capital.
Ans: C) scarcity.
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Assume the technology for producing personal computers improves and, at the same time, individuals discover new uses for personal computers so that there is greater utilization of personal computers. Which of the following will happen to equilibrium price and equilibrium quantity?
A) Price will increase; quantity cannot be determined. B) Price will decrease; quantity cannot be determined. C) Quantity will increase; price cannot be determined. D) Quantity will decrease; price cannot be determined.
Supplier power tends to be high when
a. your firm purchases critical inputs from the supplier b. your input choices are highly differentiated c. Both A&B d. None of the above
Use the following figure to answer the question below.
The production possibilities frontier in the figure above satisfies the law of
A. zero trade-off. B. a single good production. C. zero opportunity cost. D. constant opportunity costs.
Who said this? "The government is best which governs least".
A. Thomas Jefferson B. Sir William Petty C. John Stuart Mill D. Benjamin Franklin