The Existence of Scarcity Means That

question 166

Multiple Choice

The existence of scarcity means that

• A) there are not enough resources to satisfy unlimited human wants.
• B) firms will increase their production to eliminate the scarcity.
• C) the government will step in to eliminate the scarcity.
• D) firms working with the government will allocate resources to eliminate the scarcity.

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Definitions:

Bond Discounts

The financial difference observed when a bond's selling price is less than its stated face value upon sale.

Effective-Interest Method

A way of calculating the amortized cost of a bond and the amount of interest expense over its relevant period.

Interest Expense

The cost incurred by an entity for borrowed funds, often reflected in financial statements.

Market Rate

The market rate refers to the current price or interest rate of a commodity, security, labor, or currency in the marketplace.