The most basic concept in economics is
A) wealth.
B) income.
C) scarcity.
D) human need.
Answer: C
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If both demand and supply rise, which of the following must be true?
a. The equilibrium quantity will rise. b. The equilibrium quantity will fall. c. The equilibrium quantity will not change. d. The change in the equilibrium quantity is indeterminate.
Less-risky professions tend to enjoy compensating wage differentials
a. True b. False
Which of the following statements about fiat money is correct?
a) Fiat money has intrinsic value. b) Fiat money is not accepted as money. c) Fiat money is legal tender by government decree. d) Fiat money can only be electronic.
Your neighbor in an apartment complex plays his music very loudly late at night, which makes it difficult for you to get to sleep. You offer the neighbor $50, the monetary value you put on your sleep, to never play his music between midnight and 7 AM. By doing so
A. you have indicated a willingness to make the external cost a social cost. B. you have indicated the cost of the externality. The externality is not internalized even if he accepts your offer. C. you have indicated the cost of the externality, which internalizes the externality. D. you have failed to bring about an efficient solution since you should have complained to the police.