Income decreases cause a decrease in a household's choice set.
Answer the following statement true (T) or false (F)
True
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Scarcity applies to both the rich and the poor
Indicate whether the statement is true or false
During the period from 1945 to 1975, the debt to GDP ratio
a. remained steady. b. rose slightly. c. increased rapidly. d. fell steadily.
A point outside the production possibilities frontier _____
a. represents unemployment of resources. b. represents full employment of resources. c. would not represent an efficient combination of goods. d. cannot be reached using available technology. e. is less desirable than a point inside the frontier.
An increase in demand and a decrease in supply will lead to an
A) unambiguous increases in both price and quantity. B) unambiguous decreases in both price and quantity. C) an unambiguous increase in quantity, but the effect on price is indeterminate. D) an unambiguous increase in price, but the effect on quantity is indeterminate.