Author Question: To an economist, scarcity means that: a. it is very time-consuming to find a good. b. at a zero ... (Read 67 times)

geodog55 · **on:** Jun 30, 2018

To an economist, scarcity means that:
a. it is very time-consuming to find a good.
b. at a zero price, the available quantity of a good is insufficient to meet people's wants.
c. a good is unavailable even at very high prices.
d. at the current market price, the amount available is less than the amount that people want and are willing to pay for.
e. resources are unlimited but people's desires are limited.

Question 2

The expected marginal benefit to you from purchasing a new sport utility vehicle is 20,000 . The price of the new sport utility vehicle is 22,000.
a. If you are acting rationally, you will borrow 2,000 and purchase a new sport utility vehicle.
b. You will not purchase the new sport utility vehicle at this time if you are acting rationally.
c. If you do not purchase the new sport utility vehicle, your net loss will be 2,000.
d. If you are acting rationally, you will purchase sport utility vehicles until the marginal cost of doing so falls to 20,000.