The Problem of Scarcity Exists

question 100

Multiple Choice

The problem of scarcity exists

• A)only in economies that lack incentives.
• B)only in economies that have incentives.
• C)in all economies.
• D)only when people are unemployed.
• E)now but will be eliminated with economic growth.

---

Definitions:

Expenditure

The total amount of money spent by an individual, firm, or government on goods and services.

Innovation

The process of creating new methods, products, or ideas that bring about significant improvements or changes.

Diffusion

The process by which a new idea, product, or practice spreads through a population or society.

Creative Destruction

The continuous process of annihilating old and outdated business models or products to create new ones that benefit the economy.