When Is a Good or Service Considered Scarce

question 87

Multiple Choice

When is a good or service considered scarce?  

• A) if any quantity of it can be consumed at a zero price 
• B) if the amount people desire exceeds the amount available at a zero price 
• C) if the amount people desire exceeds the amount available at any price 
• D) if the amount people desire is less than the amount available at any price

---

Definitions:

Capital Gain/Loss

The increase (gain) or decrease (loss) in the value of an investment or property from its purchase price.

Depreciation Life

The estimated period over which a tangible asset is expected to be used in business operations, for the purpose of calculating depreciation.

Straight Line

A method of depreciation that allocates an asset’s cost evenly throughout its useful life.

Ice Cream Machine

A device designed to produce ice cream on a commercial or domestic scale by freezing and churning ingredients.