Which of the Following Is a Basic Tenant of the Economic

question 3

Multiple Choice

Which of the following is a basic tenant of the economic concept of scarcity?

• A) Developing countries will always have a battle to fight hunger.
• B) Resources are often wasted, which results in shortages.
• C) Income must be redistributed through taxation in order to address income disparity.
• D) Limited resources require economies to make choices among production alternatives.

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Definitions:

Production

The process of creating goods and services using labor, machinery, tools, and chemical or biological processing or formulation.

December

The last month of the year according to the Gregorian calendar, which is the twelfth.

Cash Disbursements

Payments made by a business in cash or cash equivalents, including expenses, debt payments, and distributions to owners.

Net Income

The total profit or loss of a company after all expenses, including taxes and interest, have been deducted from total revenue.