Which of the Following Statements Is True Regarding Scarcity

question 215

Multiple Choice

Which of the following statements is true regarding scarcity?

• A) Scarcity affects poorer countries only.
• B) An economy experiences scarcity only when the incomes of its citizens decline.
• C) Poor people experience scarcity more often than do rich people.
• D) All citizens in a wealthy economy experience scarcity.
• E) Scarcity could be overcome if people would make all choices in the social interest.

Understand the preparation and components of a budgeted balance sheet.

Understand the relationship between a firm’s financial performance, cost of equity capital, and its share price.

Recognize the process analysts use to forecast future cash flows based on current earnings, business strategy, and industry dynamics.

Grasp the concept of abnormal earnings and its impact on firm value.