The Problem of Scarcity Applies

question 38

Multiple Choice

The problem of scarcity applies

• A)only in countries that are over- populated
• B)to all countries, regardless of their level of development.
• C)only in developing countries because resources are scarce in these countries
• D)only in industrially developed countries because resources are scarce in these countries.
• E)only in countries that use natural resources in most of their production processes

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Definitions:

Net Purchases

The total amount of purchases after subtracting any purchases returns, allowances, and discounts.

Withdrawal Account

An account in a partnership or sole proprietorship that records the amounts taken out of the business by the owner for personal use.

Capital Account

In accounting, it refers to the account on a company's balance sheet that represents the owners' or shareholders' investment in the company.