Scarcity Is Likely to Be

question 75

Multiple Choice

Scarcity is likely to be

• A)a problem that will be solved by the proper use of available resources.
• B)unique to the twenty-first century.
• C)a problem that will always exist.
• D)a result of the work ethic.
• E)eliminated with a better understanding of economics.

Identify the effects of tariffs, quotas, and subsidies on international trade.

Explain the concepts of comparative and absolute advantage in trade.

Analyze the impact of trade deficits and surpluses on a country's economy.

Understand the role of opportunity costs in determining trade relationships.

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Definitions:

Continuing Operations

The parts of a business expected to continue for the foreseeable future, excluding any discontinued operations.

Accounting Principle

A rule or guideline that directs the accounting practices and procedures by providing a framework within which accounts are maintained.

Compensatory Stock Options

Stock options granted to employees as part of their compensation package, usually with certain conditions attached.

Common Stock

A type of security that represents ownership in a corporation and gives shareholders voting rights and eligibility for dividends.