A Consequence of the Economic Problem of Scarcity Is That

question 119

Multiple Choice

A consequence of the economic problem of scarcity is that

• A)Choices have to be made about how resources are used.
• B)There is never too much of any good or service produced.
• C)The production of goods and services must be controlled by the government.
• D)The production possibilities curve is bowed outward.

---

Definitions:

FIFO Assumption

Stands for First-In, First-Out, an inventory costing assumption where the first items purchased are the first ones to be sold.

Inventory Count

The process of physically counting the items in stock to verify the accuracy of inventory records.

Balance Sheet

A financial statement that shows the assets, liabilities, and stockholders' equity of a company at a specific point in time.

Assets

Resources owned by a business with economic value expected to provide future benefits.