Scarcity in Economics Means That

question 97

Multiple Choice

Scarcity in economics means that:

• A)we often do not have sufficient resources to achieve our objectives.
• B)the wants of people are limited.
• C)there must be poor people in rich countries.
• D)shortages exist in nearly all markets.

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Definitions:

Bond Amortization Schedule

A table detailing each periodic payment on a bond issue through amortization, showing the amount of interest and principal included in each payment until the bond matures.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, represented as a charge against earnings on the income statement.

Premium on Bonds Payable

The amount by which the proceeds from the issuance of bonds exceed their face value.

Discount on Bonds Payable

The gap between a bond's nominal value and its market price when the bond is traded at a price below its nominal value.