Scarcity Refers to the Fact That

question 50

Multiple Choice

Scarcity refers to the fact that

• A) some goods are scarce.
• B) something is scarce.
• C) a person must make choices given the resource limitations he or she faces.
• D) there is no long-term benefit to studying economics.

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Definitions:

Fixed Costs

Costs that remain constant regardless of a business's operational levels, like lease payments, wages, and coverage fees.

Break-Even Point

The point at which total costs and total sales are equal, resulting in no net loss or gain for the business.

Contribution Margin

The gap between income from sales and variable expenses, which is utilized to pay for fixed expenses and produce earnings.

Selling Price

Selling price is the amount a buyer pays to purchase a product or service from a seller.