Explain the difference between poverty and scarcity
People living in poverty have access to few resources, which limits the goods and services that can be consumed. When an individual faces scarcity it means not having enough resources to consume all that is desired (necessitating that choices be made). While not everyone lives in poverty, everyone does face scarcity. Even the rich face scarcity (since as wealth increases, so do human wants).
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Early industrialization was characterized by labor-saving technology, and this caused U.S. wages to be lower in the manufacturing industry than would otherwise have been the case
Indicate whether the statement is true or false
The market pricing system corrects an excess supply by.
a. raising the product price and increasing producer profits. b. lowering the product price and decreasing producer profits. c. raising the product price and decreasing producer profits. d. lowering the product price and increasing producer profits.
The law of diminishing marginal product shows the relationship
A. between inputs and outputs for a firm in the long run. B. between short-run and long-run outputs of a firm. C. between inputs and outputs for a firm in the short run. D. between accounting and economic profits.
The cost incurred from the production of an additional unit of a product
A) is a marginal cost to the firm. B) is called a loss. C) is called opportunity cost. D) must be zero for a firm to be efficient.