Scarcity is a concept that applies to all of the following except
A. time.
B. natural resources.
C. human wants.
D. machinery.
Answer: C
You might also like to view...
According to the rational expectations hypothesis, the attempt by the government to reduce unemployment below its natural rate through expansionary policies will
A) succeed in the short run and can succeed in the long run as long as the government makes it clear what its goals are. B) succeed because the government knows how people will react to their policies and will adjust their policies accordingly. C) fail because people will figure out what the government is doing and alter their expectations and their behavior in ways that counteract the government policy. D) fail because the economy can never achieve an unemployment rate below the natural level.
Which of the following is not a legal organization of a firm?
A) corporation B) partnership C) entrepreneurship D) proprietorship
Profit-maximizing firms enter a competitive market when existing firms in that market have
a. total revenues that exceed fixed costs. b. total revenues that exceed total variable costs. c. average total costs that exceed average revenue. d. average total costs less than market price.
When firms earn above normal rates of return
A. they tend to leave the industry and seek profits elsewhere. B. they are still breaking even economically. C. they are able to raise their prices to increase their profits. D. they are earning positive profits and new firms are likely to enter the industry.