Scarcity:
a. allows businesses to take advantage of economies of scale.
b. means that human wants for goods, services and resources exceed what is available.
c. means that as the level of production increases, the average cost of producing each individual unit declines.
d. only refers to resources, such as labor, tools, land, and raw materials.
b. means that human wants for goods, services and resources exceed what is available.
Scarcity means that human wants for goods, services and resources exceed what is available. Source: SME
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When the market for a good is in equilibrium,
What will be an ideal response?
In Table 9.4, Market 3 would be in equilibrium if buyers believed plums accounted for:
A. 11.11% of the market. B. 22.22% of the market. C. 33.33% of the market. D. 66.67% of the market.
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and GDP Price Index in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and GDP Price Index falls. b. The real risk-free interest rate falls, and GDP Price Index rises. c. The real risk-free interest rate rises, and GDP Price Index falls. d. There is not enough information to determine what happens to these two macroeconomic variables. e. The real risk-free interest rate and GDP Price Index remain the same.
Gabriel operates a ranch in Idaho where he raises cattle and grows potatoes. The figure above illustrates his production possibilities frontier. What is Gabriel's opportunity cost of raising another 100 cows?
A) 5.0 tons of potatoes B) 3.0 tons of potatoes C) 1.25 tons of potatoes D) 100 cows E) 1.0 ton of potatoes