The Problem of Scarce Resources

question 153

Multiple Choice

The problem of scarce resources:

• A) can be solved in a market economy, but not in a command economy.
• B) can be solved if all resources are jointly owned by the public and private sectors.
• C) implies that the resources are not freely available.
• D) arises because all natural resources are owned by the government in every country.
• E) can be solved by lowering taxes in an economy.

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Definitions:

Unemployment

A situation where an individual who is capable of working and is actively seeking work is unable to find employment.

Income

The amount of money or its equivalent received during a period of time in exchange for labor or services, from the sale of goods or property, or as a profit from financial investments.

Wages

Payment usually received by an employee on a regular basis for services rendered to an employer, often quantified as an hourly, daily, or piecework amount.

Salaries

Regular payments made to employees for their labor, typically based on a fixed annual amount and paid in monthly or biweekly installments.