A good is scarce if we must sacrifice something to obtain it.
a. true
b. false
Ans: a. true
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The graph shows the labor market for apple pickers in Ohio. If the government sets a minimum wage of $5 an hour, ________ apple pickers are unemployed
A) 6,000 B) 8,000 C) 10,000 D) 14,000 E) more than 14,000
Economists assume that rational behavior is useful in explaining choices people make
A) because irrational people do not make economic choices. B) because individuals act rationally all the time in all circumstances. C) even though people rarely, if ever, behave in a rational manner. D) even though people may not behave rationally all the time.
If you are told that the government had an actual budget deficit of $50 billion, then you would:
A. know that fiscal policy was expansionary. B. know that fiscal policy was producing a cyclical deficit. C. not be able to determine the direction of fiscal policy from the information given. D. know that fiscal policy was contractionary.
Skateboards are produced according to the production function, q = 10K0.25L0.5 - L. Given that capital is fixed at 16 units in the short run, what quantity of labor is needed to produce 36 units of output?
A) L = 4 B) L = 2 C) L = 25 D) L = 16