"A shortage is the same thing as scarcity." Do you agree or disagree with this statement? Why? What can cause a shortage to disappear in a market? What can cause scarcity to disappear?
What will be an ideal response?
Disagree with the statement. Scarcity is the situation where the resources available to produce goods and services are insufficient to satisfy all human wants. Scarcity is a condition of the world. A shortage occurs when the price is below the equilibrium price and quantity demanded at that price is greater than quantity supplied. The shortage can disappear by letting price rise to its equilibrium level. Scarcity will never disappear.
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The _____ account reflects the movement of goods and services into and out of the country. The _____ account reflects the flow of financial assets into and out of the country
a. universal transfer; financial b. universal transfer; current c. current; financial d. capital; current e. capital; financial
The interest rate that the Fed charges when it lends reserves to banks is called the federal funds rate
Indicate whether the statement is true or false