Michigan Has an Abundant Supply of Fresh Water

question 118

Multiple Choice

Michigan has an abundant supply of fresh water.However,an economist would consider it a scarce resource because:

• A)water is necessary for human survival.
• B)pollution will eventually destroy all life in the Great Lakes.
• C)water is limited relative to people's unlimited wants.
• D)water commands a very high price.
• E)nature can destroy water as well as create it.

---

Definitions:

External Funds

Capital that comes from outside of a company, which can include debt financing from banks or equity financing from investors.

Assets And Liabilities

The fundamental components of a company's or individual's financial position, where assets represent resources owned, and liabilities represent obligations owed to others.

Spontaneously Generated Funds

Internal funds generated by a company's operations without the need for external financing.

Retained Earnings

The portion of net income not distributed to shareholders but reinvested in the business or kept as reserve.