The use of a price system eliminates:
a. scarcity

If the federal budget goes from a budget deficit in Year 1 to a budget surplus in Year 2, does it follow that the federal government acted to raise taxes or cut government spending in Year 2?

What will be an ideal response?

If a non-renewable resource is scarce, has constant marginal cost of production, and is sold in a competitive market,

A) its price will increase over time. B) its price will exceed marginal cost. C) its price will increase by the rate of interest. D) All of the above.