The Problem of Having Unlimited Wants Under the Constraint of Limited

question 55

Multiple Choice

The problem of having unlimited wants under the constraint of limited resources describes:

• A) opportunity cost.
• B) sunk costs.
• C) scarcity.
• D) the marginal principle.

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Definitions:

Fixed Asset Turnover Ratio

A performance metric that measures a company's efficiency in using its fixed assets to generate sales, calculated as net sales divided by the average net fixed assets.

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life, reflecting its consumption or wear and tear.

U.S. GAAP

Generally Accepted Accounting Principles in the United States, a standard framework of guidelines for financial accounting used in any jurisdiction.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, presenting the financial results of its operations.