In the HPAE, inflation is kept under control and budget deficits and foreign debt levels are kept within the ability of the governments and the economies to handle them, which is quite different from the past experience of the Latin American region

What is the relationship between scarcity and shortage, as economists use the terms?

A) Scarcity and shortage cannot exist simultaneously. B) Shortages are the basic cause of scarcity. C) Scarcity creates shortages in the long run. D) Scarcity is relative while shortages are absolute. E) Scarcity is unavoidable but shortages are not.

The probability of being detected after committing a murder in Richland is 0.8, and if detected the murderer is imprisoned for a minimum of 10 years. What is the expected punishment in this case?

A) 2 years B) 8 years C) 12 years D) 10 years