Which of the following is the best example of scarcity?
A. Fred only gets a one-hour lunch break and each day must decide between working out at the gym or socializing with his colleagues.
B. The local market's buy-one-get-one-free sale on strawberries results in more people wanting the berries than producers are able and willing to supply.
C. The Talking Teddy is a surprise holiday hit, resulting in long lines of consumers trying to purchase the limited number of available Teddies.
D. Pokemon Go is the most popular cell-phone app that can be downloaded free from an app store.
Answer: A
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Business executives are more honest that other groups because
A) they serve customers. B) they serve the market. C) they are regulated. D) because they want to earn accounting profits.
Which of the following increases the speed at which a cartel's power erodes?
A. The share of the cartel in the world market increases. B. The price elasticity of competing supplies decreases. C. The cartel agreement is more stringent in imposing penalties on the members who cheat. D. The product's price elasticity of demand increases.
Which of the following may not characterize an oligopoly?
A. A few firms. B. Many firms. C. Substantial market power. D. High barriers to entry.
If one nation is able to produce a good at a lower opportunity cost than another, it has
A) an absolute advantage in that good. B) a comparative advantage in that good. C) a productivity advantage in that good. D) a technological advantage in that good.