Answer the following questions true (T) or false (F)

1. Scarcity refers to a situation in which unlimited wants exceed the limited resources available to fulfill those wants.

2. Scarcity is a problem that will eventually disappear as technology advances.

3. An economic model is a simplified version of reality used to analyze real-world economic situations.

1. TRUE
2. FALSE
3. TRUE

Economics

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This year, Tom sold his 1998 minivan to Honest John's Used Car Emporium for $5,000 . Honest John then sold the van to Bob for $7,000 . How much would be recorded in GDP this year from these transactions?

a. $0 b. $2,000 c. $5,000 d. $7,000 e. $12,000

Economics

James is responsible for the upkeep of the neighborhood garden. To keep the garden well-maintained, he allows only the senior citizens of the neighborhood into the garden for early morning walks and exercise. The garden is an example of a(n) ____

a. merit good b. club good c. public good d. inferior good

Economics