What do economists mean when they state that a good is scarce?
a. There is a shortage or insufficient supply of the good at the existing price.
b. It is impossible to expand the availability of the good beyond the current amount.
c. People will want to buy more of the good regardless of the price of the good.
d. The amount of the good that people would like exceeds the supply freely available from nature.
D
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A supply curve slopes downward because of the law of supply
a. True b. False Indicate whether the statement is true or false
The money interest rate may be a misleading indicator of real borrowing costs when
a. the unemployment rate is high. b. the actual rate of unemployment exceeds the natural rate of unemployment. c. the inflation rate is high. d. real output is declining.
The MRP is the additional ___________ obtained by using one more unit of input.
Fill in the blank(s) with the appropriate word(s).
The velocity of money is:
A. the number of transactions a typical dollar is used in during a given period. B. how quickly money is created through the financial system. C. how quickly money will be accepted as a medium of exchange in a given period. D. the number of goods a typical dollar can buy in a given period.