Which of the Following Is True Regarding Scarcity

question 57

Multiple Choice

Which of the following is true regarding scarcity?

• A)Scarcity could be eliminated if all economies of the world would work together to solve world hunger.
• B)Scarcity could be eliminated if we had full employment.
• C)It is impossible to eliminate scarcity, given limited resources and unlimited wants.
• D)Scarcity could be eliminated if all economies of the world would adopt communism.
• E)Scarcity could be eliminated if all economies of the world would adopt a free market system.

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Definitions:

Paradox of Voting

The situation where individual rationality leads to a collective decision that is worse for everyone involved.

Principal-agent Problems

Situations where there is a conflict of interest between a principal (such as an owner or shareholder) and an agent (such as a manager), due to diverging goals or asymmetrical information.

Industrial Regulation

Government rules and regulations aimed at controlling the activities, standards, and behaviors within specific industries to ensure fairness, safety, and competition.

Natural Monopoly

A market condition where a single supplier is most efficient in providing goods or services due to high fixed or startup costs.