The basic economic problem of scarcity
A) is a problem only in developing economies.
B) does not apply to the wealthy in society.
C) has always existed and will continue to exist.
D) will eventually disappear as technology continues to advance.
C
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If each case of detergent were sold at $30, determine the amount of the shortage or surplus that would result.
Consider the market for a Procter and Gamble biodegradable detergent. Suppose that market demand is QD = 120 – 3P, and market supply is QS = –50 + 2P, where P is the price per case and Q is the quantity in thousands per week.
The sale of financial assets, such as stocks and bonds, is ________.
A. not included in GDP, because they do not increase domestic production B. not included in GDP, because they do not increase domestic wealth C. included in GDP, because they increase domestic wealth D. included in GDP, because they raise domestic production
Ignoring any supply-side effects, suppose the government is considering cutting taxes by $100 billion or increasing government expenditures on goods and services by $100 billion. Then
A) both policies would increase aggregate demand but the increase in government expenditure has a smaller effect. B) the tax cut would increase aggregate demand and the increase in government expenditure would decrease aggregate demand. C) the tax cut would decrease aggregate demand and the increase in government expenditure would increase aggregate demand. D) both policies would increase aggregate demand by the same amount. E) both policies would increase aggregate demand but the tax cut has a smaller effect.
In July, market analysts predict that the price of gold will rise in August. What happens in the gold market in July, holding everything else constant?
A) The demand curve shifts to the left. B) The supply curve shifts to the left. C) The quantity demanded and the quantity supplied increase. D) The supply curve shifts to the right.