In economics, the term "scarcity" refers to the fact that
a. everything really worthwhile costs money.
b. even in wealthy countries like the United States, some people are poor.
c. no society can produce enough to satisfy fully the desires of people for goods and services.
d. sometimes shortages of a good arise when its price is set below the market equilibrium.
C
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Risk-based deposit insurance premiums have recently been __________ and this is expected to __________ the moral hazard problem of deposit insurance
A) abolished; alleviate B) abolished; worsen C) established; alleviate D) established; worsen
In monopolistic competition if there is profit, there is:
a. a signal for new firms to enter. b. a motive for existing firms to increase prices. c. proof that advertising works. d. a motive for existing firms to decrease prices. e. product differentiation.
Which of the following is a transfer payment?
a. The federal government's budget deficit b. Unemployment compensation payments c. Military spending d. Wages of government employees e. The excise tax on gasoline
Under a profit-sharing compensation scheme, the manager will:
A. not shirk all day. B. optimize his choice between income and leisure. C. shirk all day. D. do the same thing as under a fixed salary scheme.