Scarcity

question 75

Multiple Choice

Scarcity:

• A) exists because resources are unlimited while human wants are limited.
• B) means we are unable to have as much as we would like to have.
• C) will likely be eliminated as technology continues to expand.
• D) is not an issue addressed in economics.

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Definitions:

Services from Land

The benefits and outputs produced by natural resources without altering their original physical state, such as agricultural production, mining, and scenic views.

Ownership

Refers to the rights that confirm the legal possession and control over property, assets, or resources.

Marginal Product of Labor

The additional output a firm gains from employing one more unit of labor, holding all other inputs constant.

Value of Marginal Product

The additional revenue generated by employing one more unit of a factor of production, keeping other factors constant.