In Figure 1.3, A, B, and C, which depicts the existence of scarcity? 
A. Figure A
B. Figure B
C. Figure C
D. All three figures show the existence of scarcity.
Answer: D
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Since 1305, of the following centuries the inflation rate has been the highest during the
A) 17th century. B) 16th century. C) 20th century. D) 14th century. E) 15th century.
Suppose real output falls in the aggregate economy. Which is correct?
A) A real business cycle theorist thinks that there was a negative shock to total factor productivity, and that the government should therefore increase expenditures. B) A New Keynesian thinks that the output gap has fallen, and central bank's interest rate target should rise. C) A real business cycle theorist thinks that total factor productivity has risen, and that the government should do nothing . D) none of the above.
Special interest legislation generally leads to an increase in social welfare
a. True b. False
Which of the following best summarizes the importance of business failure and the central idea of "creative destruction in a market economy"?
What will be an ideal response?