What Do Economists Mean When They State That a Good

question 160

Multiple Choice

What do economists mean when they state that a good is scarce?

• A) There is a shortage or insufficient supply of the good at the existing price.
• B) It is impossible to expand the availability of the good beyond the current amount.
• C) People will want to buy more of the good regardless of the price of the good.
• D) The amount of the good that people would like exceeds the supply freely available from nature.

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Definitions:

Inseparability

A characteristic of services indicating that they are produced and consumed simultaneously, and cannot be separated from their providers.

Intangibility

A characteristic of services that means they cannot be seen, touched, tasted, or easily quantified before they are purchased.

Perishable Nature

A characteristic of goods that have a limited lifespan and deteriorate or lose value over time, such as food products or live plants.

Inventory

The total amount of goods or materials held in stock by a business, including raw materials, work-in-progress, and finished goods.