The Problem of Scarcity Implies That _____

question 9

Multiple Choice

The problem of scarcity implies that _____.

• A) resources that can meet human wants are finite
• B) human needs are limited
• C) both human wants and resources are limited
• D) both human wants and resources are infinite

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Definitions:

Subjective Probabilities

Probability estimates based on an individual's personal judgment or opinion rather than on objective data or specific calculations.

Marginal Utility

The additional satisfaction or utility that a consumer derives from consuming one more unit of a good or service.

Income Function

A mathematical representation that shows the relationship between an individual's or entity's income and one or more variables, such as the level of education or experience.

Diminishing Marginal Utility

Principle that as more of a good is consumed, the consumption of additional amounts will yield smaller additions to utility.