A plastics manufacturer can make either toys or containers. If the demand for toys increases, then the:
a. Supply of containers will decrease
b. Supply of containers will increase
c. Demand for containers will decrease
d. Demand for containers will increase
Answer: a. Supply of containers will decrease
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Private goods are goods
A) that carry a price. B) for which price is greater than zero. C) for which the more one person has the less is available for someone else. D) that are produced by the government.
A market basket:
A. only includes housing, food, and clothing, but not things like transportation. B. looks like a really long shopping list for what firm's typically purchase. C. includes specific goods and services in fixed quantities that roughly correspond to a typical consumer's spending. D. is what an economist creates in order to understand purchasing trends of households and firms.
A bank allows us to diversify risk because it has a:
A. big pool of borrowers and savers, so the risk of repayment is spread among many. B. small amount of borrowers, but many savers, so it can combine savings to make larger loans. C. small amount of borrowers and savers, so it can connect the optimal saver to the best-matched borrower. D. big pool of borrowers, but not many savers, so it can choose the riskiest person to borrow from.
An example of a poverty trap is:
A. the malnourished not having enough energy to develop their economy. B. the uneducated not knowing how to further develop their economy. C. those who do not have basic immunizations not being healthy enough to develop their economy. D. All of these are examples of poverty traps.