Which of the following statements is correct? Select one:
a. The human desire for goods and services is limited while the resources required for their production are unlimited.
b. The human desire for goods and services is virtually unlimited while the resources required for their production are limited.
c. Both the human desire for goods and services and the resources required for their production are virtually unlimited.
d. Both the human desire for goods and services and the resources required for their production are limited
b. The human desire for goods and services is virtually unlimited while the resources required for their production are limited.
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The income effect of a price change refers to the change in the quantity demanded of a good that results from a change in the price of a complementary product
Indicate whether the statement is true or false
During the Black Plague, capital became worthless. What can explain this?
A) Capital's marginal product fell because there was less labor. B) Capitalists died off at a greater rate than the workers. C) Capital's marginal product increased but the marginal product of labor decreased. D) Workers forgot how to use the capital.
You are responsible for purchasing 25 used cars for your company. Star Brand cars costs $7,500 and Diamond Brand cars cost $6,000. Based on experience, you believe that 20% of Star Brand cars are lemons (low quality) while 40% of Diamond Brand cars are lemons (low quality). You are willing to pay $5,000 for a known lemon and $12,000 for a known plum. Which brand do you purchase?
A. Star B. Diamond C. You are indifferent between brands. D. You don't buy either brand.
The market demand function for wheat is Qd = 10 - 2P and the market supply function is Qs = 4P - 2, both measured in billions of bushels per year. Suppose the government wants to increase the price of wheat to $3/bushel and they impose a price support program to achieve their goal. How much wheat must the government buy?
A. 10 billion bushels per year B. 4 billion bushels per year C. 6 billion bushels per year D. None