Answer the following statement(s) true (T) or false (F)
1. Due to scarcity, each society must answer five basic economic questions.
2. In a command economy, major economic decisions are made by thousands of independent consumers and producers.
3. Firms are the sellers in product markets.
4. Factor markets are also known as output markets.
1. False
2. False
3. True
4. False
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Refer to the diagram below for the milk market. There would be a shortage of milk whenever the price is:
A. Higher than $1.50 per gallon
B. Higher than $2.00 per gallon
C. Lower than $1.50 per gallon
D. Lower than $2.00 per gallon
Use the following graph to answer the next question.
In the graph, Dt is the transactions demand for money, Dm is the total demand for money, and Sm is the supply of money. If the interest rate was 4%, the asset demand for money would be
A. $225. B. $200. C. $125. D. $175.
In 2020, tornadoes damaged parts of the U.S. Midwest, destroying homes, businesses, schools, and infrastructure. In strictly economic terminology, these tornadoes are said to have caused
A. scarcity, because the damages made food and shelter scarce. B. tradeoffs, because some areas of the country were damaged when others were not. C. shortages, because supplies were cut off and goods were destroyed. D. scarcity, because some goods were difficult to get.
If an increase in the incomes of people who live in the Los Angeles area leads to an increase in the demand for season tickets for games played by the Los Angeles Lakers professional basketball team, then these season tickets are
A. an inferior good. B. an income complement. C. a normal good. D. an income substitute.