Which of the following statements is true?
a. Goods are scarcer than services in an economy.
b. Goods are scarce for neither the poor nor the rich.
c. Goods are scarce for both the poor and the rich.
d. Goods are scarce for the poor but not for the rich.
e. Goods are scarce for the rich but not for the poor.
QUESTION 2A monopolistically competitive market is characterized by:
a. one firm selling a unique product.
b. many firms selling identical products.
c. many firms selling similar but differentiated products.
d. few firms selling identical products.
e. few firms selling similar but differentiated products.
QUESTION 3Which of the following is true regarding scarcity?
a. Scarcity could be eliminated if all economies of the world would work together to solve world hunger.
b. Scarcity could be eliminated if we had full employment.
c. It is impossible to eliminate scarcity, given limited resources and unlimited wants.
d. Scarcity could be eliminated if all economies of the world would adopt communism.
e. Scarcity could be eliminated if all economies of the world would adopt a free market system.
QUESTION 4A deadweight loss arises under perfect competition.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5The major economic problem is to:
a. provide for full employment.
b. eliminate scarcity.
c. increase the standard of living.
d. allocate limited resources among unlimited uses.
e. increase leisure.
QUESTION 6Given the same unit costs, a monopolist will produce less output than a perfectly competitive firm.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 7Which of the following is not a limitation a person faces when shopping for clothes?
a. The amount of time available to shop
b. The person's budget
c. The various styles that are available
d. The selection of stores
e. The freedom to make rational choices
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