If a Good Is Scarce

question 21

Multiple Choice

If a good is scarce,

• A) there will be shortages of it if the good is rationed by markets.
• B) the good will have a price in a market setting.
• C) there will be enough of the good freely available from nature to satisfy the human desire for it.
• D) all of the above are true.

---

Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since its acquisition, reducing its book value on the balance sheet.

Journal Entry

A record of a transaction in a business's accounts, noting the accounts affected and the amounts.

Depreciation

The process of methodically allocating the expense of a physical asset over its functional life.

Sales Price

The amount at which goods or services are sold to customers, sometimes before discounts, taxes, or additional charges.