Can the same principles that have been used in the study of advanced economies be used to study less developed economies as well? Explain your answer
What will be an ideal response?
Yes. All economic analysis deals with the problem of making choices under conditions of scarcity, and the problem of satisfying people's wants and needs is as real for Somalia and Haiti as it is for the United States, Germany, and Japan. The universality of scarcity is what makes economic analysis relevant to all nations, regardless of their level of material well-being or ruling political ideology.
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The deadweight loss from a rent ceiling below the equilibrium rent is smallest when the supply of housing is
A) perfectly elastic. B) elastic but not perfectly elastic. C) unit elastic. D) inelastic but not perfectly inelastic. E) perfectly inelastic.
The difference between currency outstanding and currency in circulation is equal to
A) vault cash. B) bank reserves. C) coins issued by the U.S. Treasury. D) zero; they are the same thing.
A point inside the production possibilities curve illustrates a situation in which resources are not fully employed
a. True b. False
Price discrimination refers to:
a. charging different prices to different groups on the basis of production cost differences. b. charging different prices to different groups without a basis for doing so because of differences in production costs. c. the ability of a firm to charge a price in excess of marginal cost. d. consumer bargain hunting.