Which of the following is true?
a. As long as human wants exceed available resources, scarcity will exist.
b. Scarcity ultimately leads to competition for the available goods and services.
c. Scarcity affects everyone to the same degree.
d. Both a. and b. are true.
Question 2
Which of the government policies below is not likely to encourage per capita economic growth?
a. High taxes on companies that spend a lot on capital formation
b. The use of tax revenues for investment and capital formation
c. Special subsidies for capital-intensive forms of production
d. Promotion of education and training programs for workers
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