USA ACADEC ECON PRACTICE TEST 2022-2023 with COMPLETE SOLUTIONS

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which of the following is TRUE, according to Adam Smith, with respect to the water-diamond paradox? A. water is waned but not needed B. Diamonds are needed but few have a desire for them. C. The us... e value of diamonds is greater than their scarcity value D. The scarcity value of water is less than the scarcity value of diamonds E. Goods whose demand declines when income increases - ✔✔The scarcity value of water is less than the scarcity value of diamonds How do economists define inferior goods? A. goods that inferior people buy B. goods whose demand declines when income declines C. goods whose demand declines when the price of a substitute good increases D. goods who demands declines when the price of complementary good decreases E. goods who demand declines when income increases - ✔✔goods who demand declines when income increases Which of the following statements concerning banks in INCORRECT? A. banks get the funds they lend by accepting deposits from customers. B. bank pay depositors interest and charge borrowers more than they pay to depositors. C. the interest rate banks charge covers what they pay depositors, cost associated with making the loan, borrower default risk and some level of profit. D. all bank deposits are insured regardless of their amountE. banks facilitate the purchases of goods and services by providing checking accounts - ✔✔all bank deposits are insured regardless of their amount A human desire _____ A. is equivalent to the quantity demanded of the product B. is the equivalent to the demand for a product C. only requires a price D. only requires production of the product E. Requires neither a price nor income - ✔✔Requires neither a price nor income Subsides provided to a firm that would have produced the windmills without receiving the subsides is an example of _________ A. logrolling B. positive externalities C. negative externalities D. rent seeking E. pork barrel politics - ✔✔rent seeking A Spanish institution used to deliver water in the Southwest of the United States is known as A. the agua fria B. an aquifer C. an acequia D. The Alhambra E. the aguar diente - ✔✔an acequia [Show More]

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