What do economists mean when they discuss "scarcity"?
What will be an ideal response?
Scarcity occurs whenever people's wants exceed the ability of the available resources to meet these wants. Because people's wants are effectively infinite-it is always possible to imagine more good things to want to have-wants will always exceed what can be produced with the available resources, and so scarcity will always be present.
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Demand deposits are: a. assets of banks, liabilities of depositors. b. liabilities of banks, assets of depositors. c. assets of banks and their depositors
d. liabilities of banks and their depositors.
What does "there is no such thing as a free lunch" mean in economics?
A. That scarce resources are used up to provide "freebies" and giveaways B. That sometimes people may take friends out to lunch and pay for them C. That all items in the lunch menu have specific prices D. That products only have value because people are willing to pay for them