What do economists mean when they state that a good is scarce?
What will be an ideal response?
The amount of the good that people would like exceeds the supply freely available from nature.
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A policy to increase aggregate demand to cure a recessionary gap may succeed; however, inflation is a likely result
a. True b. False Indicate whether the statement is true or false
Data on trade barriers and the growth of per capita GDP indicate that
a. there is no link between the degree of a country's trade openness and its economic growth. b. more open economies have grown more rapidly than those that have imposed substantial barriers restricting trade. c. economies that have imposed high trade barriers have, on average, grown more rapidly than economies that are more open to international trade. d. countries with higher trade barriers have been able to achieve higher levels of per capita GDP than those that are more open to international trade. e. both c and d are correct.
An increase in consumption at any given level of income is likely to lead to:
a) Higher aggregate demand b) An increase in exports c) A fall in taxation revenue d) A decrease in import spending
Which of the following is the most likely to be a variable factor of production at a university?
A. The location of the university B. The size of the student union C. The number of librarians D. The size of the football stadium