Every society must deal with the problem of scarcity because:
a. people do not have enough money to buy everything they need.
b. government levies heavy taxes on households and firms.
c. human beings become satiated as consumption increases.
d. human wants are nearly unlimited relative to the availability of resources.
e. productive resources, technology, and labor are unlimited.
d
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Which of the following is classified as a sunk cost?
a. Cost of the next best alternative b. Additional cost of producing an additional unit c. Research costs to determine the implementation of a technology d. Total cost of producing a product
The increase in the number of sellers of a good would
A. move its supply curve to the left. B. cause a movement along the supply curve to a (lower price, lower quantity) point. C. move its supply curve to the right. D. cause a movement along the supply curve to a (higher price, higher quantity) point.
Describe the difference between a command-and-control approach and a market-based approach to reducing pollution.
What will be an ideal response?
When production is characterized by persistently declining long-run average costs as output increases
A) the costs of production are greater when competition exists than when a single firm produces a good. B) it is impossible for two firms to compete in the market. C) the costs are lower if a single firm exists, and even if the firm is unregulated, price will still be lower with a single firm. D) there is no need for the government to limit competition by licensing requirements.