The Scarcity Principle tells us ________, and the Cost-Benefit Principle tells us ________.
A. how to make good choices; that choices involve costs and benefits
B. how to make choices; that choices must be made
C. that choices must be made; how to make good choices
D. that good choices eliminate scarcity; how to make good choices
Answer: C
You might also like to view...
If on Monday you can buy 13 Mexican pesos per U.S. dollar and on Wednesday you can buy 15 Mexican pesos per U.S. dollar,
a. both the U.S. dollar and the Mexican peso have appreciated b. both the U.S. dollar and the Mexican peso have depreciated c. the U.S. dollar has appreciated and the Mexican peso has depreciated d. the U.S. dollar has depreciated and the Mexican peso has appreciated e. the Mexican peso has appreciated and the U.S. dollar has remained constant
The higher the anticipated inflation rate, _____
a. the more workers will ask for in wages and the more firms will agree to pay b. the more workers will ask for in wages and the less firms will agree to pay c. the less workers will ask for in wages and the less firms will agree to pay d. the higher the real wage increases offered by firms e. the higher the real wage increases asked for by workers
Starting from short-run equilibrium, the following occurs: labor productivity rises and individuals expect higher (future) incomes. What is the effect on the price level and Real GDP in the short run?
A) Real GDP falls and the price level necessarily rises. B) Real GDP rises and the effect on the price level cannot be determined. C) Real GDP rises and the price level necessarily falls. D) Real GDP falls and the effect on the price level cannot be determined. E) Real GDP rises and the price level necessarily rises.
The interest rate effect shows that if the price level increases
A. consumers and businesses will borrow more to replenish their real money balances, which pushes up interest rates and causes spending to decrease. B. U.S. exports and imports will both decrease. C. consumers and businesses will increase their spending to buy the same amount of goods as before to make up for the higher interest rates. D. the real value of financial assets will increase.