Which of the Following Statements Best Describes the Economic Concept

question 134

Multiple Choice

Which of the following statements best describes the economic concept of scarcity?

• A)Society is not employing all of its available resources in an efficient manner.
• B)People's wants can never be satisfied by the available resources.
• C)Scarcity afflicts only poor countries.
• D)Too many frivolous goods and services are produced at the expense of socially desirable goods and services.
• E)Production is efficient,but distribution is inefficient.

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Definitions:

Investment

The allocation of resources, usually money, into assets or projects expected to generate future returns or profit.

Profitability Index

A calculation that measures the relative profitability of an investment by dividing the present value of future cash flows by the initial investment cost.

Discount Rate

This rate is applied in discounted cash flow analysis to derive the current value of cash flows expected to be received in the future.

Project

A short-term effort made to develop a distinct product, service, or outcome.