Why does scarcity lead to the what, how, and for whom questions?
What will be an ideal response?
Human wants exceed the resources available to satisfy them, thereby creating the problem of scarcity of goods and services. Everyone wants more than he or she can have, be it a student dreaming of a faster computer or an extraordinarily rich business leader wishing for more vacation time. Because not all wants can be satisfied, people must make choices about which wants to satisfy. The choices resulting from scarcity mean that people must decide what gets produced, how are the products produced, and for whom are the products produced.
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An increase in the rate of depreciation is associated with ________
A) a decrease in the rate of productivity B) a decrease in gross investment C) a decrease in net investment D) an increase in net investment
If demand for personal computers increases as a result of an increase in income,
a. personal computers must be a normal good b. personal computers must be an inferior good c. personal computers must be a complement d. the substitutes for personal computers must be inferior goods e. the substitution effect is larger than the income effect