A good that is not scarce
A. is not in demand.
B. would have a vertical supply curve over the relevant range.
C. would have a zero price.
D. would have an infinite price.
Answer: C
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The demand for most farm products is relatively inelastic. All else constant, what is the effect on farm revenues as a result of the introduction of new and better farm equipment which increases productivity?
A) Farm revenues could increase or decrease depending on the cost of this new equipment. B) Farm revenues remain constant because consumers will not increase their consumption of farm products by much. C) Farm revenues increase. D) Farm revenues decrease.
"Automatic stabilizers" played a part in reducing the length and severity of the recession of 1953-54 . Which of the following is an example of an "automatic stabilizer"?
a. Deficit spending by the federal government b. Spending on education by local and state governments c. Programs like unemployment insurance and Social Security d. Actions by the Federal Reserve aimed at reducing interest rates
Where does equilibrium occur in an income expenditure diagram? What would be the effect if production is at either on the left or right side of the equilibrium point?
Which of the following examples shows a decreasing-cost industry?
a. As coal mining contracts, the price of drills rise. b. As the DVD industry contracts, the price of DVDs drops. c. As commercial farming expands, the price of suitable land rises. d. As the transistor radio industry expands, the price of transistors drops.