Scarcity is a condition that is everywhere and always, since it is based upon two assumptions that reflect permanent universal conditions. The assumptions are that more output will satisfy more wants and

there are limited wants.

the world has limited productive resources.

the world has unlimited productive resources.

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Question 23 pts

What are the factors of production?

land, labor, opportunity

land, economic capital, labor, entrepreneurship

money, resources, labor, management

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Question 33 pts

A nation that bans trade with other nations

will more easily achieve specialization in production and end up consuming more.

can refine their ability to allocate resources and therefore raise consumption.

will be unable to specialize in what they are good at and therefore end up consuming less.

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Question 43 pts

Congress must vote whether to increase the government budget so as not to shut down the government this year. The vote passed and the budget ceiling has been increased to keep the government running. This is an example of what type of policy?

microeconomic monetary policy

macroeconomic monetary policy

macroeconomic fiscal policy

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Question 53 pts

The theory of rational behavior

assumes that people will behave in the best interest of society as a whole.

implies that people will always take the time to make perfectly informed decisions.

is an assumption that economists make to have a useful model for how decisions are made.

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