The most basic concept of economics is
A) money.
B) scarcity.
C) bounded rationality.
D) shortage.
Answer: B
You might also like to view...
What is one significant characteristic of fractional reserve banking?
A. Bank loans will be equal to the amount of gold on deposit. B. Banks hold a fraction of their loans in reserve. C. Banks can create money through lending their reserves. D. Banks use deposit insurance for loans to customers.
If Ringo is risk averse, at a wealth of $200,000 his utility of wealth curve has a ________ slope and his marginal utility of wealth is ________ than at a wealth of $100,000
A) negative; smaller B) negative; larger C) positive; smaller D) positive; larger
The Taylor rule says that the fed funds rate target is a function of all of the following, except
A) the actual inflation rate. B) the target inflation rate. C) the percentage difference between actual and potential real GDP. D) the level of borrowed reserves.
Consumer surplus:
A. is minimized in market equilibrium. B. measures the value between the actual selling price of a product and the price at which sellers are willing to sell the product. C. measures the value between the price consumers are willing to pay for a product and the price they actually pay. D. measures the price at which sellers extract excess profits from consumers.