Scarcity

question 75

Multiple Choice

Scarcity:

• A) exists because resources are unlimited while human wants are limited.
• B) means we are unable to have as much as we would like to have.
• C) will likely be eliminated as technology continues to expand.
• D) is not an issue addressed in economics.

Analyze the gains from trade between individuals or nations using the production possibilities frontier.

Understand the implications of trading at a constant opportunity cost.

Identify scenarios where trade does not benefit a nation.

Discuss how the production possibilities frontier (PPF) illustrates potential consumption and production combinations.

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Definitions:

Service Firm

A business that provides intangible products or services to its customers, such as consulting, legal advice, or maintenance services, rather than physical goods.

Job Order Costing System

An accounting system that accumulates costs for each specific job or order, used in environments where goods or services are produced upon request.

Manufacturing Costs

The expenses directly related to the production of goods, including materials, labor, and overhead.

Raw Materials

Basic materials that are used in the production process to manufacture goods and are not yet processed or fabricated.