Scarcity

question 38

Multiple Choice

Scarcity:

• A)is a problem only in the poorer countries of the world.
• B)would disappear if resources were unlimited.
• C)can be solved by rapid advances in technology.
• D)is a problem that exists in every economy.
• E)is not a problem for the very rich.

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Definitions:

Working Capital

The amount of a company's current assets minus its current liabilities, indicating the short-term financial health and operational efficiency of a business.

Salvage Value

The projected value of an asset when it reaches the end of its operational life.

Discount Rate

The discount rate applied in the calculation to ascertain the current value of forthcoming cash flows through discounted cash flow analysis.

Cash Inflows

The money received by a business from its various activities, such as sales, investments, financing, etc.