In economics, scarcity means that

A. Society's desires exceed resources available.
B. The market mechanism has failed.
C. A production possibilities curve cannot accurately represent the trade-off between two goods.
D. A shortage of a particular good will cause the price to fall.

Answer: A

Economics

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Keynesians believe that to help ensure full employment production, we should use

A) both counter-cyclical monetary and fiscal policy. B) a money supply rule and counter-cyclical fiscal policy. C) counter-cyclical fiscal policy only. D) counter-cyclical monetary policy only.

Economics

If a firms cuts inputs in half, and output falls by more than half, then there are

A) increasing returns to scale. B) decreasing returns to scale. C) constant returns to scale. D) decreasing marginal returns.

Economics