The Society Must Also Make Choices Under Conditions of Scarcity

question 112

Multiple Choice

The society must also make choices under conditions of scarcity.This problem arises from the fact that:

• A)society's wants are limited but the resources are not.
• B)resources are scarce relative to society's wants.
• C)societies behave only in their self-interest.
• D)society's wants and resources are both unlimited.

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Definitions:

Wages

Payments made to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis.

Income Effect

How a shift in income, whether for an individual or an economy, influences the amount of a good or service that is requested.

Leisure

Free time when one is not working or occupied, offering the opportunity for rest, recreation, or other personal activities.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, reflecting how individuals respond to changes in income or working conditions.