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:

IPO Underpricing

The phenomenon where shares of a company are sold at a lower price during the initial public offering than the price at which they subsequently trade in the open market.

Offering Price

The price at which shares of a company are initially made available for purchase during an initial public offering or other issuance.

Firm Commitment

An underwriter's guarantee to the issuer to sell an entire offering of stocks or bonds at a set price.