Which of the Following Illustrates the Concept of Scarcity

question 9

Multiple Choice

Which of the following illustrates the concept of scarcity?

• A) There is usually more than one use of your "free" time in the evening.
• B) More clean air is wanted than is available in large polluted metropolitan areas such as Los Angeles.
• C) There are many competing uses for the annual budget of your city, county, or state.
• D) All of the answers are correct.
• ​

---

Definitions:

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, frequently used as an indicator of inflation.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of currency.

Inflation Rate

The percentage increase in the general price level of goods and services in an economy over a period of time, usually a year.

Market Basket

A selected set of goods and services used to track an economy's inflation or cost of living over time.