Which of the Following Statements Is TRUE About Scarcity

question 206

Multiple Choice

Which of the following statements is TRUE about scarcity?

• A) Both rich and poor people face the problem of scarcity.
• B) Scarcity exists only when supply is insufficient to meet demand.
• C) Scarcity exists only when a shortage exists.
• D) Scarcity can be eliminated when a country becomes richer.

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Definitions:

Earned

Money obtained in return for labor or services provided.

Public Assistance

Government programs designed to provide financial or other aid to individuals or groups in need.

Permanent Underclass

A segment of the population that experiences persistent poverty and social disadvantages, making upward mobility difficult.

Poverty Line

The minimum level of income deemed necessary to achieve an adequate standard of living in a given country.