The Principle of Scarcity Applies to

question 45

Multiple Choice

The principle of scarcity applies to

• A) the poor exclusively.
• B) nations exclusively.
• C) all consumers.
• D) all firms.
• E) everyone;consumers,firms,governments,and nations.

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Definitions:

Incorporated

The process of legally declaring a business entity as a corporation, providing its owners with benefits such as limited liability.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services provided on credit.

Accounts Payable

The amount of money a company owes to its suppliers or vendors for goods and services received but not yet paid for.

Line of Credit

A flexible loan from a bank or financial institution that sets a maximum amount of money the borrower can access and use over a period.