The Scarcity Principle is an economic theory in which a limited supply of a good, coupled with a high demand for that good, results in a mismatch between the desired supply and demand equilibrium.
Indicate whether the statement is true or false.
Answer: True.
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The demand for labor is different from the demand for final goods and services because
A) the law of demand does not apply to the demand for labor. B) the demand for labor is derived from the demand for the good or service the labor is used to produce. C) it is a demand for people, not inanimate objects. D) the demand for labor is more inelastic than the demand for the goods and services produced with this labor.
If unions are successful at increasing union wages, it will a. increase wages and employment in the union sector
b. increase wages and decrease employment in the union sector. c. increase wages and employment in the non-union sector. d. increase wages and decrease employment in the non-union sector.
What is the main advantage of holding corporate bonds, when compared to holding stocks?
a. Bondholders carry voting privileges. b. Bondholders have the option of converting bonds to stock. c. Bondholders have first claim on a corporation's profit. d. Bondholders get a higher return, but with higher risk. e. Bondholders are corporate owners so have more say.
A shortage means that:
a. Quantity demanded is greater than the quantity supplied at that price b. Quantity demanded is less than the quantity supplied at that price c. Supply of the product is less than the demand d. Demand for a product is less than the supply