Some individuals or families can become completely saturated with a service such as television. This suggests that
a. wants are limited
b. desires for a single commodity can be satisfied but then the focus will switch to other goods and services
c. a highly productive economy may someday be able to satisfy all human desires
d. resources are not truly fixed in supply as we generally assume
e. scarcity does not exist
B
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Over the past decade, a nation's real Gross Domestic Product (GDP) grew at a constant rate of 10 percent per year while its population grew 8 percent annually
Forecasters predict that during the coming decade, real GDP will continue to grow 10 percent annually, but the population growth rate is expected to drop to 6 percent annually. If the forecasters are correct, which of the following will be TRUE? A) The annual rate of growth of per capita real GDP will decline from 2 percent to 1 percent. B) The annual rate of growth of per capita real GDP will increase from 2 percent to 6 percent. C) The annual rate of growth of per capita real GDP will increase from 2 percent to 4 percent. D) The annual rate of growth of per capita real GDP will decline from 4 percent to 2 percent.
When the law of diminishing returns takes effect
A) firms must add increasingly more input if they are to maintain the same extra amount of output. B) firms must add decreasingly more input if they are to maintain the same extra amount of output. C) more input must be added in order to increase its output. D) a firm must always try to add the same amount of input to the production process.
Which of the following is not included in GDP as part of government services?
A.) Social Security benefits. B.) Military equipment. C.) Highways and bridges. D.) Education.
Exhibit 1A-7 Straight line relationship
According to Exhibit 1A-7, the relationship between annual income and air-travel expenditures is:
A. direct. B. inverse. C. complex. D. independent.