Which of the following statements is TRUE about scarcity?
A. Scarcity exists only when supply is insufficient to meet demand.
B. Both rich and poor people face the problem of scarcity.
C. Scarcity exists only when a shortage exists.
D. Scarcity can be eliminated when people earn sufficient incomes.
Answer: B
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Which of the following trade agreements, which took effect in 1994 and was implemented over a 15-year period, eliminates all tariffs and other trade barriers between its members?
A) North American Free Trade Agreement B) Asian Pacific Economic Cooperation C) General Agreement on Tariffs and Trade D) World Trade Organization
Under a gold standard,
a. with a balance of payments deficit, interest rates would fall and attract foreign capital. b. a deficit in the balance of payments increased a nation's money supply automatically. c. all currencies were defined in terms of gold. d. when a nation had a deficit in its balance of payments, more gold was flowing in than was flowing out. e. All of the above are correct.
Concluding that a company is in violation of antitrust laws because it controls over 90 percent of the market is an application of judgment by:
A. comparative advantage. B. performance. C. design. D. structure.
David consumes 200 in the current period and 330 in the future period. The real interest rate is 10% per period. David's present value of lifetime consumption is
A. 563. B. 500. C. 550. D. 530.