Which of the following explains why economic choices must be made?
A. The factors of production are scarce.
B. The factors of production are expensive.
C. The factors of production are used inefficiently.
D. The factors of production are of inferior quality.
Answer: A. The factors of production are scarce.
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According to the World Bank, in 2006, China's GDP was approximately $2.7 trillion (or $2,700 billion). That same year, India's GDP was approximately $906.3 billion
With which of the following populations would China's standard of living have been considered higher than India's that year? A) China's population = 500 million; India's population = 125 million B) China's population = 8.3 billion; India's population = 1.1 billion C) China's population = 1.3 billion; India's population = 1.1 billion D) China's population = 3.5 billion; India's population = 1.1 billion
International trade is based on the existence of
A) absolute advantage. B) perfect advantage. C) productivity advantage. D) comparative advantage.
The intersection of the aggregate demand and aggregate supply curves determines the:
A. per-unit cost of production in the economy. B. equilibrium level of real domestic output and prices. C. shape of the aggregate demand curve. D. shape of the aggregate supply curve.
Which of the following could explain why the demand for table salt is inelastic?
A) Salt is a luxury good. B) Salt is a rare commodity. C) Households devote a very small portion of their income to salt purchases. D) Salt is a luxury for high-income consumers but a necessity for low-income consumers.