1. The problem of scarcity
A. exists because the limited human wants cannot be satisfied with available resources.
B. can be solved in a market economy.
C. would disappear if there were no market failures.
D. always results in shortages of some goods.
E. exists because the unlimited human wants cannot be satisfied with limited resources.
2. Which statement best describes the? "law of? demand"? Other things being? equal, the quantity of tennis rackets demanded will be greater if the
A. incomes of tennis players are higher.
B. demand for tennis rackets rises.
C. price of badminton rackets is higher.
D. number of tennis players is higher.
E. price of tennis rackets is lower.