Scarcity is caused by
A) unlimited wants running up against limited economic resources.
B) a company's slow production speed.
C) an individual's budget that is insufficient to cover the expenses of certain goods or services.
D) shortages.
Answer: A
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The free-rider problem with a public good leads to
A) inefficiency if the good is provided by only private markets with no government action. B) overproduction if the good is provided by private markets. C) underproduction if the good is provided by the government. D) None of the above answers is correct.
If nominal wages adjust slowly to changing economic conditions, then a decrease in the price level will cause the real wage rate to rise and employment and real output to fall. This description of the impact of a decrease in the price level on real output is used to explain:
What will be an ideal response?
A theory must be capable of being proved wrong if, in fact, it is wrong
Indicate whether the statement is true or false
In order to maximize its profits, a firm that hires workers in a perfectly competitive labor market will hire workers until the:
A. extra revenue generated from hiring another worker equals the extra cost of hiring that worker. B. the marginal wage rate equals marginal product of the last worker. C. extra revenue generated from hiring another worker equals the extra profit from hiring that worker. D. the marginal product of labor begins to decline.