A good or service is said to be scarce when:
a. its price is too low.
b. it is offered only to high income earners.
c. no one wishes to purchase it.
d. it cannot be transported easily.
e. at a price of zero, there is not enough to satisfy everyone's desire for it.
QUESTION 2The law of diminishing marginal utility helps explain:
a. why most individual demand curves are straight lines.
b. why most supply curves slope upward.
c. why most individual demand curves slope downward.
d. why marginal utility falls when total utility falls.
QUESTION 3Tools and equipments used in production are:
a. natural resources.
b. entrepreneurial resources.
c. human capital.
d. capital resources.
e. labor resources.
QUESTION 4Which of the following is a possible drawback of horizontal fracking?
a. A fall in the cost of recovering natural gas and oil
b. An increase in the price of gas and oil as a result of a decline in the supply of natural gas and oil
c. A fall in imports of natural gas and oil
d. A fall in environmental exploitation due to the means employed to extract oil
e. An increase in harmful air emissions, water contamination, and problems associated with the disposal of harmful waste fluids
QUESTION 5For most goods and most people, marginal utility probably:
a. continues to increase as larger quantities are purchased.
b. declines as consumption increases.
c. plummets after the first few units but soon begins to rise.
d. is negative after the first unit of a good is purchased.
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