Answer the following questions true (T) or false (F)
1. Scarcity refers to a situation in which unlimited wants exceed the limited resources available to fulfill those wants.
2. Scarcity is a problem that will eventually disappear as technology advances.
3. An economic model is a simplified version of reality used to analyze real-world economic situations.
1. TRUE
2. FALSE
3. TRUE
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Tickets to the Michigan-Notre Dame football game are usually sold out in advance of game day. This suggests that
a. the price of the tickets must be very high or else people would not consider them valuable
b. the price is set below the equilibrium level
c. the football stadium is relatively small
d. everyone who attends the game will enjoy it
e. the price is determined primarily by the fixed supply of tickets
If a country fixes the exchange-rate value of its currency, it will have to
a. follow a highly expansionary monetary policy in order to maintain the convertibility of its currency. b. give up its monetary independence in order to maintain the convertibility of its currency. c. fix its domestic interest rates in order to maintain the convertibility of its currency. d. raise taxes in order to maintain the convertibility of its currency.
Explain the various ways that financial intermediaries increase the efficiency of an economy.
What will be an ideal response?
A recent college graduate with a major in economics attends a job fair but has not yet found a job. This graduate is counted as a:
What will be an ideal response?