Suppose there is a new technological invention that will allow you to put any resource into a special black box and in an instant anything that you program it to produce will be produced? Does this invention end scarcity? Why or why not?
What will be an ideal response?
It does not end scarcity for the simple reason that you still need to use human labor to place the resources in the black box and the natural resources themselves of course are still scarce. In addition, this device will not limit our wants.
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An example of a government-based approach to improve the quality of information in financial markets is ________
A) financial news networks B) mandatory disclosures C) government-directed credit D) government safety nets
The total value of all outstanding federal government securities is
A) a flow variable. B) the budget deficit. C) total personal wealth. D) none of the above.
Say's Law
a. cannot be satisfied if there is excess supply or demand in individual markets in the long run b. ensures that every firm will sell all of its output c. can be satisfied even if there is a general overproduction or underproduction of goods in the economy d. is satisfied only if every market clears in the short run e. shows that the total value of spending in the economy will equal the total value of the output produced
If the Fed were to increase the discount rate so that it was much higher than the federal funds rate, eventually
A) reserves would decrease and the money supply would decrease. B) reserves would increase and the money supply would increase. C) reserves would decrease and the money supply would increase. D) reserves would increase and the money supply would decrease. E) there is no impact on reserves or the money supply.