Scarcity Results from the Fact That

question 111

Multiple Choice

Scarcity results from the fact that

• A)choices made in self-interest are not always in the social interest.
• B)people's wants exceed the resources available to satisfy them.
• C)we cannot answer the major economic questions.
• D)the population keeps growing.
• E)not all goals are desirable.

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Definitions:

Variable Cost

Costs that change in proportion with the level of output or activity, such as raw materials and labor costs.

Scenario Analysis

A process of examining and evaluating possible events or scenarios that could affect the outcome of a decision or a projection.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, showing the proportion of fixed to variable costs.