Scarcity of Resources

question 24

Multiple Choice

Scarcity of resources:

• A) limits productive capacity.
• B) does not apply to advanced economies.
• C) is theory, not fact.
• D) applies only to natural resources.

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Definitions:

Centered

In a general context, it means being in the middle or at the heart of something; in mathematics, it can refer to the process of adjusting data points or a distribution so that its mean equals zero.

Convex Preferences

Refers to a situation in economics where a consumer prefers a mix or combination of goods over having all of one good, demonstrating a desire for diversity in consumption.

Exchange

The act of giving one thing and receiving another in return, particularly in reference to goods, services, or currencies.

Transitive Preferences

A concept in decision theory where if a person prefers option A over B and B over C, then the person also prefers A over C.