The Existence of a Universal Law of Scarcity Creates Pressures

question 91

Multiple Choice

The existence of a universal law of scarcity creates pressures on societies to

• A)use their resources according to government plans.
• B)economize in the use of their resources.
• C)allocate their resources equitably.
• D)exploit their resources.

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Definitions:

Permanent Accounts

Accounts in the general ledger that are not closed at the end of the accounting period, including asset, liability, and equity accounts.

Closing Entries

Journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent accounts.

Revenue

The aggregate revenue from selling goods or services, which constitute a firm's central business functions.

Expense Accounts

Accounts used to record the consumption of assets or services that result in a decrease in owner's equity, excluding the withdrawal of business assets by the owner.