The term scarcity in economics refers to the fact that:
a. No country can produce enough products to satisfy everybody's economic wants
b. Even in the richest country some people go hungry
c. Economic wants are limited and resources are abused
d. It is impossible to produce too much of any particular good or service in a market economy
a. No country can produce enough products to satisfy everybody's economic wants
You might also like to view...
Central banks get the purchasing power to make discount loans by:
a. Reducing currency in circulation. b. Buying government securities. c. Taking loans from the government. d. Increasing their liabilities in the form of deposits from banks.
If M doubled and V fell by 25%, what would happen to PQ?
What will be an ideal response?
The demand for microwaves in a certain country is given by: D = 8,000 - 30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, and the government imposes a tariff of $30 per microwave, then the tariff revenue collected by the government will be ________.
A. $4,000 B. $40,000 C. $60,000 D. $24,000
Distinguish the short run from the long run. Generally, what causes costs of production to vary with output in the short run? What generally causes costs of production to vary in the long run?
What will be an ideal response?