When economists say goods are scarce, they mean:
A. consumers are too poor to afford the goods and services available.
B. consumers are unwilling to buy goods unless they have very low prices.
C. goods are generally freely available from nature in most countries.
D. the desire for goods and services exceeds our ability to produce them with the limited resources available.
Answer: D
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Regression analysis is designed to show any systematic pay differences between men and women
A) that are based only on gender difference. B) that are based on differences in education levels and majors. C) that are based on differences in career choices. D) that are based on differences in job experience.
Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, eight million dollars on deposit with the Federal Reserve, and nine million dollars in excess reserves
Given this information, we can say First National Bank has ________ million dollars in required reserves. A) one B) two C) eight D) ten
There are many industries in the United States where only a few firms compete. These industries
a. have low Herfindahl-Hirschman Indexes b. are considered to be oligopolies c. are considered to be monopolistically competitive d. have four-firm concentration ratios that approach zero e. all practice price leadership
During normal times, if the marginal propensity to consumer is 3/4, and the government borrows $10 billion in order to increase spending by that amount, real output will expand by
a. more than $40 billion, because both the additional borrowing and the additional spending will stimulate real output. b. $40 billion, because the net multiplier will be 4. c. less than $40 billion, because the additional borrowing will place upward pressure on real interest rates, weakening the impact of the multiplier. d. $10 billion, because during normal times, the government can borrow funds without any increase in interest rates.