Scarcity Means That

question 87

Multiple Choice

Scarcity means that

• A) what we can produce with our resources is greater than our material wants.
• B) resources are unlimited.
• C) wants are greater than what we can produce with our resources.
• D) governments must make up for shortages in resources.
• E) choices made in self-interest cannot be the same as those made in the social interest.

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Definitions:

Purchase of Raw Materials

The acquisition of the basic materials required for the production of goods or delivery of services.

Work in Process Inventory

The account that tracks the costs associated with partially completed goods that are still in the process of being manufactured.

Unadjusted Cost of Goods Sold

Unadjusted Cost of Goods Sold (COGS) is the initial calculation of all costs directly associated with the production of goods before any adjustments for inventory changes or other factors.

Journal Entry

A record in the accounting journal that represents a business transaction and its effect on the accounts.