Scarcity Exists When

question 154

Multiple Choice

Scarcity exists when:

• A)making choices among two or more alternatives is not necessary.
• B)individuals can have more of any good without giving up anything.
• C)individuals can have more of one good but only by giving up something else.
• D)resources are unlimited.

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Definitions:

Net Social Cost

The comprehensive expense to the community for the production of one more unit of an item, encompassing both personal expenses and external factors.

Rent-Seeking Behavior

Actions by individuals or firms to increase their own wealth without generating new wealth or value for society, often through manipulating the social or political environment.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market with no close substitutes, often leading to less competitive markets.

Marginal Cost

The cost of producing one additional unit of a good or service, taking into account factors that vary with production levels.