Which of the following sets of terms describes the problem of scarcity in economics?

A. goods, land, and needs
B. choices, opportunity costs, and trade-offs
C. labor, needs, and opportunity costs
D. production, consumption, and wants


Answer: B

Economics

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An industry's output is produced at the lowest possible cost when

a. firms' marginal costs are equal. b. firms minimize their average costs. c. all firms earn the same profit. d. output is evenly divided among the industry's firms.

Economics

Ann Taylor and Gap are two clothing companies that must decide on the leading color palette for next season. Their sales depend on the choice of color they make as well as the choice their competitor makes

Their sales are summarized in the payoff matrix above. Using the payoff matrix A) the only Nash Equilibrium is for both companies to choose pink. B) the only Nash Equilibrium is for both companies to choose orange. C) the Nash Equilibrium is for one company to choose pink while the other company chooses orange. D) there are two Nash Equilibria: either both companies choose pink or both choose orange.

Economics

If the interest rate is 10 percent per year, and you have $100,000 now, which of the following is closest to what your $100,000 will be worth in one year?

A) $105,000 B) $110,000 C) $100,000 D) $102,000

Economics

The Ricardo-Barro effect is based on the idea that ________ when the government has a budget deficit

A) investment demand increases because expected future profits increase B) people decrease their private saving C) investment demand decreases because of the higher real interest rate D) people immediately increase their tax payments E) people increase their private saving

Economics