"A shortage is the same thing as scarcity." Do you agree or disagree with this statement? Why? What can cause a shortage to disappear in a market? What can cause scarcity to disappear?
What will be an ideal response?
Disagree with the statement. Scarcity is the situation where the resources available to produce goods and services are insufficient to satisfy all human wants. Scarcity is a condition of the world. A shortage occurs when the price is below the equilibrium price and quantity demanded at that price is greater than quantity supplied. The shortage can disappear by letting price rise to its equilibrium level. Scarcity will never disappear.
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Today, Walt Disney World charges different customers different prices for admission. This pricing strategy is called
A) odd pricing. B) arbitrage. C) cost-price pricing. D) price discrimination.
Which of the following reduce the incentive for households to save?
a. both means-testing of government benefits and inheritance taxes b. means-testing of government benefits but not inheritance taxes c. inheritance taxes, but not means-testing of government benefits d. neither means-testing of government benefits nor inheritance taxes
One reason that U.S. exports of commercial services have increased steadily over the past 25 years is that
A) European and Asian nations have shown little interest in developing their own commercial services sectors. B) the United States has made significant investments in new information technologies. C) the U.S. government owns and operates most of the economy's service sector. D) the U.S. economy operates like one big corporation.
Minimum-wage laws
a. create unemployment. b. do not apply in states with right-to-work laws. c. affect highly-educated workers more than high school dropouts. d. cause labor shortages, which further raise wages above equilibrium.