What is scarcity and why does it exist? How is scarcity related to the study of economics?
What will be an ideal response?
Scarcity exists because resources are limited while wants are unlimited. Scarcity means we are unable to have as much as we would like. Economics is the study of how human beings attempt to maximize satisfaction in the face of scarcity.
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Brand management refers to
A) the efforts to maintain the differentiation of a product over time. B) selling the right to use a brand name in a particular market. C) picking a brand name for a new product that will attract attention. D) efforts to reduce the cost of production.
The Washington Consensus refers to
a. agreements between Republicans and Democrats b. guidelines for limiting government intervention, supported by the World Bank andInternational Monetary Fund c. the agreement as to where to locate the U.S. government d. guidelines for providing U.S. aid to developing-country governments e. guidelines for providing federal aid to state and local governments
Financial intermediaries are
A) institutions that regulate financial instruments. B) organized exchanges where currencies are traded. C) organized exchanges where securities and financial instruments are bought and sold D) institutions that make loans to borrowers and obtain funds from savers.
For net present value calculations, the rate of return that one could earn by investing in another project with similar risk is known as the:
A) real interest rate. B) nominal interest rate. C) prime interest rate. D) opportunity cost of capital.