In Economics, the Term "Scarcity" Refers to the Fact That

question 41

Multiple Choice

In economics, the term "scarcity" refers to the fact that

• A) everything really worthwhile costs money.
• B) even in wealthy countries like the United States, some people are poor.
• C) no society can produce enough to satisfy fully the desires of people for goods and services.
• D) sometimes shortages of a good arise when its price is set below the market equilibrium.

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Definitions:

Tax

An obligatory financial contribution or different kind of levy enforced on an individual or entity by a government agency for the purpose of funding government activities and diverse public costs.

Total Damage

The cumulative harm or loss resulting from an event or series of events, often used in the contexts of legal claims or environmental impacts.

Market Level

Refers to the overall condition or status of a market, including factors like total supply, demand, price levels, and market participants.

External Benefits

Benefits that are enjoyed by individuals or firms who did not directly participate in the transaction or activity that produced the benefit, also known as positive externalities.