Economics could be defined as the study of scarcity
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose the government of New Country has fixed the value of its currency, the New Peso, at $1 per New Peso, but the market equilibrium value of the New Peso is $2 per New Peso. In order to maintain the official value of the New Peso the Central Bank of New Country must either ________ domestic interest rates, or ________the supply of international reserves by purchasing New Pesos
A. lower; decrease B. lower; increase C. raise; decrease D. raise; increase
An increase in transfer payments would have the same short run effect on the government deficit as an equal
A) increase in government expenditures. B) reduction in taxes. C) increase in taxes. D) Both A and B.
Suppose a roll of paper towels costs $5 at Sam's Quick Stop, a local quick stop, and the same roll of paper towels costs $2 at Big Supplies, a large, retailer located in a more remote location. If a customer's total cost of travel to Sam's Quick Stop is $2 and is $6 to Big Supplies, which of the following is true?
A) The consumer is indifferent as to where they buy the paper towels. B) It is cheaper for the consumer to buy the paper towels at Sam's Quick Stop. C) It is cheaper for the consumer to buy the paper towels at Big Supplies. D) It is more expensive for the consumer to buy the paper towels at Sam's Quick Stop.
Using a production possibilities curve, a technological advance that increases the amount of output for the same amount of inputs would be illustrated as a(n):
a. flattening of the curve. b. movement from one point to another point along the curve. c. outward shift of the curve. d. movement from a point on the curve to a point inside the curve.