The Problem of Economic Scarcity Applies

question 63

Multiple Choice

The problem of economic scarcity applies

• A) only in industrially developed countries, because resources are scarce in these nations.
• B) only in underdeveloped countries, because there are no productive resources in these nations.
• C) only in economic systems that are just beginning to develop, because specialized resources are scarce in developing nations.
• D) to economic systems in all nations, regardless of their level of development.

---

Definitions:

Marginal Utility

The additional satisfaction or usefulness obtained from acquiring or consuming one more unit of a product or service.

Diminishing

A principle often seen where there is a decrease in the marginal (incremental) output of a production process as the amount of a single factor of production increases while others remain constant.

Donut

A fried dough confectionery or dessert food, usually sweet, and often served with a variety of toppings or fillings.

Total Utility

The total satisfaction received from consuming a particular quantity of a good or service.