SCARCITY Refers to the Principle That People Tend to

question 5

Multiple Choice

SCARCITY refers to the principle that people tend to

• A) Reduce their power in order to persuade others.
• B) Share information in order to persuade others.
• C) Assign greater value to resources that are in short supply.
• D) Assign lower value to resources that are in short supply.
• E) All of the above.

---

Definitions:

Collateral

An asset that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid according to the agreement.

Accounts Payable

The amount a company owes to suppliers for goods and services purchased with credit.

Factor

A finance company to which businesses sell their accounts receivable—usually for a percentage of the total face value.