Which of the Following Best Describes When Scarcity Occurs

question 75

Multiple Choice

Which of the following best describes when scarcity occurs?  

• A) when resources are unlimited 
• B) when there is a shortage, so buyers cannot obtain the goods they want 
• C) when there is a surplus, so sellers cannot sell the goods they produce 
• D) when resources are insufficient to satisfy unlimited wants

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Definitions:

Cash Purchase Price

The amount of money required to buy a good, service, or asset without financing or credit.

Effective Interest Rate

The actual return on an investment or the real cost of borrowing, accounting for the effect of compounding interest.

Compounded Monthly

The calculation of interest on the principal amount where the interest accrued is added to the principal every month, allowing for the accumulation of interest on interest.

Capital Cost

The total acquisition cost of an asset, including the purchase price and costs associated with its acquisition and preparation for use.