For society, when is a good NOT scarce?
a) if at least one individual in society can obtain all he or she wants of the good
b) if firms are producing at full capacity
c) if all members of society can have all they want of the good
d) if those who have enough income can buy all they want of the good
Answer: c) if all members of society can have all they want of the good
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Trade can be beneficial to an economy because:
A) it results in a more efficient use of the combined resources of some of the trading countries, even though it reduces efficiency in others. B) more goods and services can be obtained at lower opportunity cost. C) it prevents specialization in those activities in which countries have a comparative advantage. D) It prevents unemployment.
In late 2008, the U.S. government extended unemployment insurance benefits for seven additional weeks, in recognition of the growing unemployment problem. This extension is an example of
A) automatic fiscal policy. B) discretionary fiscal policy. C) expansionary monetary policy. D) supply-side fiscal policy.