Which of the following is true of scarcity?
a. It applies to raw materials; manufactured goods are not scarce.
b. It affects all countries except the United States and Canada.
c. It affects only poor nations.
d. It is a basic problem of economics that affects all nations.
d. It is a basic problem of economics that affects all nations.
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Suppose that the technology used to produce computers advances. How does this change affect the supply of computers and the supply curve of computers?
What will be an ideal response?
In the IS-LM model, the implicit assumption made about aggregate supply was that the
a. aggregate supply schedule was vertical because prices were flexible. b. aggregate supply schedule was horizontal because prices were fixed. c. aggregate supply schedule was upward sloping to the right because wages and prices were fixed. d. supply of output was fixed. e. none of the above.