Scarcity

question 17

Multiple Choice

Scarcity

• A)stems from the incompatibility between limited resources and unlimited wants.
• B)can be overcome by discovering new resources.
• C)can be eliminated by rationing products.
• D)is a bigger problem in market economies than in socialist economies.

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Definitions:

Bilateral Monopoly

A bilateral monopoly occurs when a market consists of a single supplier and a single buyer.

Monopsonist

A market condition where there is only one buyer or a dominant buyer for a product or service, giving them significant power over prices.

Bilateral Monopoly Wage Rate

refers to the wage rate determined in a market where there is only one employer (a monopoly) and one union or employee (a monopsony), necessitating negotiation to reach an agreement on wages.

Perfectly Inelastic Supply

A market condition where the quantity supplied remains constant regardless of changes in price.