There Are Not Enough of Four Goods to Satisfy the Wants

question 219

Multiple Choice

There are not enough of four goods to satisfy the wants of people. For good A, this is true when the price is $100. This is true for good B at a price of $10, for good C at a price of $1, and for good D at a price of zero. Which situation reflects scarcity rather than shortage?

• A) A
• B) B
• C) C
• D) D

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Definitions:

Universal Needs

Fundamental requirements or desires common to all humans, such as food, shelter, safety, and belonging.

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow that categorizes human needs into five levels, from basic physiological needs to self-actualization, influencing motivation and behavior.

Win-Lose

A competitive scenario where one party's gain is directly proportional to another's loss, suggesting a zero-sum game.

Negotiations

The process of discussing terms in order to reach a mutual agreement or compromise between parties.