Which of the Following Illustrates the Concept of Scarcity

question 9

Multiple Choice

Which of the following illustrates the concept of scarcity?

• A) There is usually more than one use of your "free" time in the evening.
• B) More clean air is wanted than is available in large polluted metropolitan areas such as Los Angeles.
• C) There are many competing uses for the annual budget of your city, county, or state.
• D) All of the answers are correct.
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Definitions:

Paid-in Capital

The amount of money that a company has received from shareholders in exchange for shares of stock.

Stock Dividend

A form of dividend payment made in shares rather than cash, which increases the number of shares held by each shareholder.

Retained Earnings

The portion of a company's accumulated net income that is not distributed to shareholders as dividends but is kept as reserves for reinvestment in the business operations.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.