What Do Economists Mean When They State That a Good

question 277

Multiple Choice

What do economists mean when they state that a good is scarce?

• A) People will want to buy more of the good regardless of price.
• B) It is impossible to expand the availability of the good.
• C) Our wants exceed our limited resources.
• D) There is a shortage of the good at a sale price.

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Definitions:

Tax Rate Schedule

A chart or table that determines the amount of tax due based on income brackets, applicable to different filing statuses.

Total Income

The aggregate amount of income earned by an individual or entity from all sources before any deductions or taxes.

Deductions

Expenses that can be subtracted from gross income to reduce taxable income, such as mortgage interest, medical expenses, and charitable contributions.

Tax Credit

A direct reduction in tax liability, not merely a reduction in taxable income, that can decrease the amount of taxes owed.