Which Example Is Considered an Artificially Scarce Good

question 147

Multiple Choice

Which example is considered an artificially scarce good?

• A)a candy bar
• B)a free art exhibit in a city park
• C)a pay-per-view boxing match on cable television
• D)an interstate highway without tolls

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Definitions:

Fixed Costs

Expenses that do not change with the level of output or sales, such as rent, salaries, and insurance premiums.

Long Run

The Long Run is a period in economics during which all factors of production and costs are variable, allowing for adjustment to changing market conditions.

Fixed Amount

A specific, unchanging quantity of something.

Diminishing Returns

An economic principle that states as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot increase proportionally.