The Concept of Scarcity in Economics Usually Refers to a Condition

question 52

Multiple Choice

The concept of scarcity in economics usually refers to a condition

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

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Definitions:

Operating Income

The profit realized from a company's everyday business operations, calculated by subtracting operating expenses from gross profit.

Year 1

Typically refers to the first year of operation or the initial year in a set period under review or analysis.

Unit Product Cost

The cost of producing one unit of a product, including direct materials, direct labor, and manufacturing overhead.

Absorption Costing

A costing approach that integrates both direct and indirect costs associated with manufacturing into the product's total cost.