The term scarcity in economics refers to the fact that:
a. No country can produce enough products to satisfy everybody's economic wants
b. Even in the richest country some people go hungry
c. Economic wants are limited and resources are abused
d. It is impossible to produce too much of any particular good or service in a market economy
Answer: a. No country can produce enough products to satisfy everybody's economic wants
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Which of the following is a difference between an English auction and a Dutch auction?
A) Bids are placed publicly in an English auction while bids are placed privately in a Dutch auction. B) The bidder who values the good the most wins in an English auction while the bidder who values the good the least wins in a Dutch auction. C) An English auction is an ascending price auction while a Dutch auction is a descending price auction. D) An English auction is a descending price auction while a Dutch auction is an ascending price auction.
Private saving + Government saving equals ________
A) Taxes + Investment B) Output minus Consumption C) Government capital + human capital D) Investment + Net exports
A long and deep recession in the business cycle is:
a. unemployment. b. a trough. c. a recession. d. a depression e. unavoidable.
Which of the following abilities should an economic model possess?
a. It should lower the time cost of information collection. b. It should help individuals to discern the information that matters for a problem. c. It should be able to process both untrue or impossible to verify information as well as correct information in the data set. d. It should suggest accurate solutions for a problem.