Scarcity is a concept that implies that choices must be made.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 2Which of the following is true of a successful cartel?
a. A successful cartel offers consumers the lowest possible price for a product.
b. A successful cartel minimizes profits for its members.
c. A successful cartel behaves as a monopolist in the market.
d. A successful cartel produces a quantity greater than that produced in a competitive market.
e. A successful cartel is always stable.
QUESTION 3The primary goal of economics is to help people make money.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 4Wal-Mart created a competitive advantage with its inventory system to reduce the ratio of cost of goods sold to sales, expecting:
a. to enjoy huge economic profits forever.
b. that its rivals will never imitate their strategy and it will continue to enjoy positive economic profits.
c. that its rivals will immediately do the same thing and it will end up earning zero profits.
d. to enjoy economic profits for a few years before its rivals caught up.
e. that it will at least be able to cover its fixed costs.
QUESTION 5The greater the economic freedom in a country, the higher is the index of human development.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 6Which of the following theories applies to strategic behavior?
a. Field Theory
b. Game Theory
c. Theory of Consumers' Behavior
d. Social Contract Theory
e. Rational Choice Theory
QUESTION 7When private property rights in a country are not secure, people cannot use their property as collateral for loans.
a. True
b. False
Indicate whether the statement is true or false
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