Scarcity can best be defined as a situation in which:
A. some producers are selfish with resources.
B. consumers look for bargains.
C. all wants cannot be satisfied due to resource constraints.
D. people respond to incentives.
Answer: C
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Discretionary monetary policy has the drawback that it
A) must lead to very high inflation. B) is currently illegal in the United States. C) makes inflation expectations harder to manage. D) cannot be implemented using changes in the federal funds rate. E) None of the above answers is correct.
If Hector's marginal rate of substitution between pens and pencils is constant, regardless of how many pens and pencils he has, then his indifference curves
a. are right angles. b. are straight lines. c. slope upward. d. cross one another at certain points.
Intellectual property, unlike more tangible assets, can be created without the cost of time or money, and thus the patent and copyright system needlessly creates monopoly ownership of intellectual property that should be provided for free to the public
Indicate whether the statement is true or false
The current account is
A. the price of one nation's currency in term of the currency of another country. B. a category of the balance of payments transactions that measures the exchange of merchandise, the exchange of services, and unilateral transfers. C. the reserve assets created by the International Monetary Fund for countries to use in settling international payment obligations. D. a category of the balance of payments transactions that measures flows of real and financial assets.