Explain why both rich and poor people experience scarcity
What will be an ideal response?
Scarcity exists when people's wants exceed their ability to satisfy the wants. People's wants are literally infinite, so just as a poor person can want more, so too can a richer person. Therefore both rich and poor experience scarcity.
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Economic growth is:
A. an increase in our economy's potential output. B. represented by the long-run aggregate supply curve shifting to the right. C. a result of having more natural resources, land or capital. D. All of these are true.
Which of the following is not a way for the government to solve the problem of excessive use of common resources?
a. regulation b. taxes c. turning the common resource into a public good d. turning the common resource into a private good
Colombia produces coffee with less labor and land than any other country; it therefore surely has
A. an absolute advantage in coffee production. B. a comparative advantage in coffee production. C. absolute efficiency in coffee production. D. a comparatively absolute advantage in coffee production.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point A to Point B, ________ additional OLED TVs could be produced when the production of LCD TVs is reduced by 30.
A. exactly 20 B. more than 20 C. fewer than 20 D. exactly 90