Answer the following statement(s) true (T) or false (F)
1. Multimillionaires do not experience scarcity because they can afford all the goods and services they desire.
2. Economists consider the concept of need difficult to define because it is hard to compare “needs” among people.
3. “Average cost” is another name for “marginal cost.”
4. Economists assume that people make the best choice they can because they do not want to make themselves worse off.
1. False
2. True
3. False
4. True
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Fill in the blanks: ________ is defined as a sustained ________ in the purchasing power of money
A) Inflation; fall B) Deflation; fall C) Inflation; rise D) Answers B and C above are both true.
The above figure shows the supply and demand curves for high-skilled and low-skilled labor. The figure shows that high-skilled workers earn a wage rate greater than low-skilled workers because
A) the supply of high-skilled labor is greater than the supply of low-skilled labor. B) high-skilled labor has a lower value of marginal product. C) of both the cost of acquiring skills and the differences in the value of marginal products. D) of discrimination.
Diminishing returns begin to occur when the
A. marginal product curve intersects the average product curve. B. slope of the ray from the origin reaches a maximum. C. slope of the total product curve reaches a maximum. D. total product curve reaches a maximum.
The reduction in stock prices will have the most direct effect on which of the following types of wealth?
A) financial wealth B) housing wealth C) human wealth D) none of the above