Scarcity and Production Possibilities
Scarcity means that there is less of a good or resource available than people wish to have.
a.True
b.False
a.True
The freedom to start a business is:
c.freedom of enterprise
Baseballs and baseball bats are substitute goods.
b.False
All of the following are corporations except:
c.Bagel Experience
Approximately what percentage of the world's economies experience scarcity?
a. 25%
b. 50%
c. 75%
Having the lower opportunity cost is associated with
b.Comparative Advantage
The unique point at which the supply and demand curves intersect is called?
a.equilibrium.
Two or more owners of a business describes a:
b.Partnership
Resources are
c. scarce for households and scarce for economies.
Who buys in the resource/factors of production market?
b.Firms
If, at the current price, there is a shortage of a good,
Doctors and Lawyers are most likely what type of business?
b.Partnership
Guns and butter are used to represent the classic societal tradeoff between spending on
c. national defense and consumer goods.
For two individuals who engage in the same two productive activities, it is impossible for one of the two individuals to
a. have a comparative advantage in both activities.
Why is the supply curve upward sloping?
d.Higher prices encourage suppliers to produce more quantity to bring to market
__________________________have the advantage of limited liability.
c.Corporations
Which of the following is the most accurate statement about production possibilities?
c. An economy can produce at any point on or inside the production possibilities frontier, but not outside the frontier.
What characteristic of capitalism brings buyers and sellers together?
c.Markets and Prices
The law of demand states that if price rises
c.quantity demanded falls
All of the following are reasons why businesses fail except:
d.High profits