Which of the following describes the reason why scarcity exists?
A. Governments make bad economic decisions.
B. The gap between the rich and the poor is too wide.
C. Wants exceed the resources available to satisfy them.
D. There is too much unemployment.
C Answer C uses the definition of scarcity on page 2.
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The Clayton Act of 1914 was passed to prohibit, in part, price discrimination if the effect is to substantially lessen competition or create monopoly
Indicate whether the statement is true or false
According to the monetarists, which of the following is true?
A. Instability in the money supply is the primary cause of economic instability. B. A reduction in the money supply will cause consumers to increase spending. C. A reduction in the money supply will cause a proportional reduction in wages and prices, leaving output unchanged. D. A rapid growth rate of the money supply will lead to a rapid growth rate of real GDP.