If all the world's resources were to magically increase one hundredfold, then:
A. people would still have to make trade-offs.
B. scarcity would disappear.
C. trade-offs would become unnecessary.
D. economics would no longer be relevant.
Answer: A
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The figure above shows Diane's demand curve for soda. The price of a soda is $1.00. Diane's consumer surplus from her 15th soda is
A) $0.00. B) $0.50. C) $1.00. D) $1.50. E) $2.50.
One difference between moral hazard and adverse selection is
a. Adverse selection has to do with unobservable characteristics of individuals b. Moral hazard has to do with unobservable actions of individuals c. Adverse selection is individuals change their behaviors because of a contract d. Only A&B
What kind of economic activity, involving the purchase of stocks rather than physical assets, has skyrocketed in the global market?
a. portfolio investment b. floating exchange rate c. agricultural exportation d. competitive devaluation
Valuing environmental services based on estimating the value of different characteristics of market goods is called
a. Travel cost method b. Contingent valuation c. Hedonic pricing d. Production function valuation e. Avoided cost valuation