When Economists Speak of Scarcity,they Are Referring to the

question 36

Multiple Choice

When economists speak of scarcity,they are referring to the

• A) condition in which society is not employing all its resources in an efficient way.
• B) condition in which people's wants outstrip the limited resources available to satisfy those wants.
• C) economic condition that exists in only very poor countries of the world.
• D) condition in which society produces too many frivolous goods and not enough socially desirable goods.

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Definitions:

Factory Overhead

All indirect costs associated with manufacturing, including costs related to operating the factory except for direct materials and direct labor.

Direct Labor

The expense of salaries for workers directly engaged in creating products or delivering services.

Product Costs

Costs that are directly associated with the manufacturing of goods, including materials, labor, and overhead.

Direct Materials Used

The actual amount of raw materials consumed in the production process of goods.