Answer the following statements true (T) or false (F)
1. The budget line shows the various incomes that an individual can earn from different jobs.
2. The fundamental economic problem faced by a society is that productive resources are so varied and versatile, that it is hard to decide what to do with them.
3. The resource category called "land" includes forests, animals, and water resources.
4. When economists talk about the capital resources in the economy, they are referring to the amount of money circulating in the economy.
1. Answer: False
2. Answer: False
3. Answer: True
4. Answer: False
You might also like to view...
Paying salespeople a fixed wage contract, one in which income does not depend on the volume of sales, avoids
A) both adverse selection and moral hazard. B) neither adverse selection nor moral hazard. C) adverse selection but not moral hazard. D) moral hazard but not adverse selection.
If tastes are identical between countries, then comparative advantage is determined by
A) supply conditions only. B) demand conditions only. C) supply and demand conditions. D) Can't tell without more information.
Assume that the central bank sells government securities in the open market. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the net nonreserve international borrowing/lendingand monetary base in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. The net nonreserve international borrowing/lending balancebecomes more positive (or less negative) and monetary base rises. b. The net nonreserve international borrowing/lending balancebecomes more negative (or less positive) and monetary base falls. c. The net nonreserve international borrowing/lending balancebecomes more positive (or less negative) and monetary base stays the same. d. The net nonreserve international borrowing/lending balanceand monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
A monopolist claims his profit-maximizing markup factor is 10. What is the price elasticity of demand for the firm's product?
A. ?2.0 B. ?2.5 C. ?1.5 D. None of the answers are correct.