The most basic concept in economics is
A) wealth.
B) income.
C) scarcity.
D) spending.
C
You might also like to view...
Which of the following is a reason why decreases in the price level result in a rise in aggregate expenditure?
A) Price level decreases cause firms and consumers to hold less money, which lowers the interest rate. Lower interest rates raise consumption and planned investment expenditures, which raises aggregate expenditure. B) As the price level falls, government spending rises, which raises aggregate expenditure. C) Price level decreases in the United States relative to other countries' lower net exports, which raises aggregate expenditure. D) Price level decreases reduce real wealth, which causes consumption spending and aggregate expenditure to rise.
Long distance telephone service has become a competitive market. The average cost per call is $0.05 a minute, and it's declining. The likely reason for the declining price for long distance service is:
a. Governmental pressure to lower the price b. Reduced demand for long distance service c. Entry into this industry pushes prices down d. Lower price for a barrel of crude oil e. Increased cost of providing long distance service
An example of an activity that creates a positive consumption externality is
a) locating beehives next to an orange orchard b) a noisy party c) smoking, which harms the health of a bystander d) a flu vaccination
The IS-LM model predicts that a temporary beneficial supply shock
A. increases output, national saving, and the real interest rate, but not investment. B. increases output, national saving, and investment, but not the real interest rate. C. increases output, national saving, investment, and the real interest rate. D. increases the real interest rate, investment, and output, but not national saving.