Scarcity Implies That Choices Must Be Made

question 33

Multiple Choice

Scarcity implies that choices must be made.Making choices implies

• A)the wasteful use of resources.
• B)that scarcity can be eliminated.
• C)the existence of costs of production.
• D)the existence of opportunity costs.
• E)both C and D above.

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Definitions:

Lending Arrangements

Financial agreements where a lender provides funds to a borrower with the expectation that the funds will be repaid, often with interest.

Accounts Receivable Financing

An arrangement where a business sells its outstanding invoices to a third party at a discount in exchange for immediate cash.

Technologically Obsolete

The state in which a technology or product becomes outdated or no longer competitive due to advances in newer technologies.

Leasing Credit Criteria

The standards and requirements set by lessors to evaluate the creditworthiness and eligibility of lessees for a lease agreement.