What is the difference between scarcity and a shortage?
What will be an ideal response?
Scarcity is a situation in which unlimited wants exceed the limited resources available to fulfill those wants. A shortage of a good occurs only if the quantity demanded is greater than the quantity supplied at the current price.
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An economy in long-run equilibrium experiences an increase in aggregate demand. According to the classical model,
A) the price level will increase, but real GDP will not change. B) the price level and real GDP will increase at the same time. C) the price level will increase, but real GDP will decrease. D) the price level will rise first, then real GDP will increase.
It is the responsibility of the Trading Desk at the Federal Reserve Bank of New York to implement policies in the form of
A) changes in the spread between the federal funds rate and the discount rate that are consistent with rules established by the twelve Federal Reserve bank presidents. B) variations in reserve requirements that are consistent with the announcements by the Chair of the Fed's Board of Governors. C) changes in foreign exchange rates that are consistent with policies established by the Secretary of the Treasury. D) buying or selling government securities that are consistent with the FOMC Directive.
Labor productivity is
A. the average amount produced per worker. B. the average amount produced times the number of people in the labor force. C. the average amount produced times the number of workers. D. the rate of change in the total amount produced per worker.
Refer to the information provided in Figure 13.3 below to answer the question(s) that follow. 
Figure 13.3Refer to Figure 13.3. The marginal revenue of the 12th pound of burritos is
A. -$4. B. -$3. C. $2. D. $8.