Which of the Following Statements Is True Regarding Scarcity

question 85

Multiple Choice

Which of the following statements is true regarding scarcity?

• A) An economy experiences scarcity only when the incomes of its citizens decline.
• B) Scarcity could be overcome if people would make all choices in the social interest.
• C) Poor people experience scarcity more often than do rich people.
• D) Scarcity affects poorer countries only.
• E) All citizens in a wealthy economy experience scarcity.

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Definitions:

Parameter λ

Often used to denote a rate parameter in exponential distributions which quantifies the frequency of occurrence for a given event.

Normally Distributed

A type of distribution for a variable where data are symmetrically distributed around the mean, showing a bell-shaped curve.

Average Balance

The mean amount of money held in an account over a certain period.

Standard Deviation

An index of variability that quantifies the spread of a set of numbers or the dispersion from the average.