The Idea That Because of Scarcity, Producing More of One

question 160

Multiple Choice

The idea that because of scarcity, producing more of one good or service means producing less of another good or service refers to the economic concept of:

• A)optimisation.
• B)efficiency.
• C)trade-off.
• D)equity.

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Definitions:

Expense

An outflow of resources or incurrence of liabilities that result from a company's operations, aimed at generating revenue.

Prior Period Adjustment

A correction of errors in financial statements that were made in previous periods, affecting retained earnings on the balance sheet.

Financial Statements

Official records that detail the financial activities and condition of a business, including income statement, balance sheet, and cash flow statement.

Retained Earnings

The portion of a business’s profits not distributed to shareholders, instead reinvested in the business or kept for reserve.