The Basic Economic Problem of Scarcity

question 25

Multiple Choice

The basic economic problem of scarcity

• A)has always existed and will continue to exist.
• B)will eventually disappear as technology continues to advance.
• C)is a problem only in developing economies.
• D)does not apply to the wealthy in society.

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Definitions:

Repayment Period

The time frame agreed upon within a loan agreement for the borrower to pay back the borrowed amount plus any applicable interest.

Promissory Note

Commercial paper or instrument in which the maker promises to pay a specific sum of money to another person, to his order, or to bearer.

Cosign

To sign jointly with another or others, especially in agreeing to be responsible for a loan if the primary borrower defaults.

Minor

A person who is under the legal age of majority, and therefore has limited legal rights and responsibilities.