Explain why even the most affluent people, businesses and counties never solve the problem of scarcity
What will be an ideal response?
Scarcity is a problem that is never completely solved. Scarcity means that we do not ever have enough of everything, including time, to satisfy our every desire. Thus even the most affluent have limited resources and unlimited wants even though they may have solved more of their wants with their larger amount of resources.
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Assuming that w and r are both positive, if the long-run expansion path is horizontal, then
A) = 0. B) MRTS is a function of capital only. C) w = r. D) All of the above.
To an economist, individuals are acting "rationally" if they are striving to do their best to achieve their goals
a. True b. False Indicate whether the statement is true or false
Macroeconomics is concerned with
A. individual consumers. B. specific markets. C. a nation's economy. D. individual business firms.
The tendency for ________ to decrease when ________ decreases is the result of the accelerator effect.
A. aggregate output; saving B. consumption; investment C. saving; consumption D. investment; aggregate output