Author Question: Empirical evidence on the U.S. economy suggests that household spending and income have an inverse ... (Read 71 times)

eruditmonkey@yahoo.com · **on:** Jun 30, 2018

Empirical evidence on the U.S. economy suggests that household spending and income have an inverse relationship.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Does economic growth eliminate scarcity?

mk6555 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

False

Answer to Question 2

Growth does not eliminate scarcity. When output grows more rapidly than population, people are better off. But they still face trade-offs. At any point along the production possibilities curve, to get more of one thing, one must give up something else.