A typical economic good has which one of the following characteristics?
A. The desired quantity exceeds the quantity available at a zero price.
B. It is never scarce.
C. It uses no resources to produce.
D. The quantity available exceeds the desired quantity at a zero price.
Answer: A
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When a firm links its employees' compensation to the performance of the firm, the firm is using
A) an incentive system. B) a command system. C) a cooperative system. D) an agency system.
A single-price monopolist will produce the output at which ________
A) marginal revenue equals marginal cost B) demand is perfectly inelastic C) marginal revenue is zero D) demand is inelastic but not perfectly inelastic
Which of the following would cause a rightward shift of the demand for loanable funds curve?
a. a fall in the marginal rate of return on investment b. a fall in the value of the marginal product of capital c. a rise in the marginal product of capital d. a fall in the investment demand curve e. a fall in the price of the product capital produces
Taxes in the United States are automatic stabilizers in that
A. tax revenues increase when income increases, thus offsetting some of the increase in aggregate demand. B. tax revenues decrease when income increases, intensifying the increase in aggregate demand. C. the President can increase tax rates whenever he deems such policy appropriate. D. tax rates can be adjusted by Congress to counteract economic fluctuations.