To say that there is a scarcity of gold means that:
a. gold prices will fall in the future.
b. there is not enough gold to satisfy people's demand for it at a zero price.
c. there are very few substitutes for gold.
d. gold is very expensive.
e. the demand for gold is changing.
b
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A decrease in income will cause a consumer's budget constraint to
a. shift outward, parallel to its initial position. b. shift inward, parallel to its initial position. c. pivot along the horizontal axis. d. pivot along the vertical axis.
Suppose that government requires airline companies to have at least 30 airplanes and serve at least 20 different airports. This is an example of
A) safety concerns. B) perfect information. C) barriers to entry. D) labor union power.
In Figure 20.1, the increase in Real GDP might reflect 
A. a stronger currency. B. reduced worker productivity. C. adoption of sound fiscal and monetary policies. D. elimination of "welfare as we know it."
A monopolist's profit-maximizing price and output correspond to the point on a graph
A) where total costs are the smallest relative to price. B) where marginal revenue equals marginal cost and charging the price on the market demand curve for that output. C) where average total cost is minimized. D) where price is as high as possible.