Economics is the social science that studies
A) the real reasons people buy goods and services.
B) the psychology of individuals and businesses.
C) whether a nation has enough natural resources.
D) how people make choices to cope with scarcity.
E) how choices made in the social interest could eliminate scarcity.
D
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Refer to Figure 14.3. To maximize total wages paid to workers, the labor union will agree to wage rate:
A) W0. B) W1. C) W2. D) W3. E) none of the above
A factor not indicated by the GDP measurement that would tend to raise the standard of living for the same GDP is a(n)
a. increase in population size. b. rise in the price level. c. jump in external costs. d. shift toward production of consumer-oriented goods and services.
A positive cross elasticity of demand means two goods
a. have downward-sloping demand curves b. are substitutes and may belong to the same market c. are complements and may belong to the same market d. are normal goods e. have upward-sloping demand curves
A firm is likely to be a natural monopoly:
A. when the demand for its product or service is inelastic. B. if it is producing an inferior good. C. if economies of scale are experienced over the full range of output. D. because government grants it an exclusive franchise.