The Trade-Offs That Are Made Because of Scarcity

question 95

Multiple Choice

The trade-offs that are made because of scarcity

• A) are important in developing economies,but they do not apply to developed economies.
• B) are important in developed economies,but they do not apply to developing economies.
• C) are different when they involve the wants of people,but they are similar when they involve the needs of people.
• D) can be accurately made to the extent that they can be quantified.
• E) depend on the decision maker's value judgments about the relative importance of the alternatives.

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Definitions:

Bond Owners

Individuals or institutions that hold debt securities issued by corporations or governments, entitling them to receive fixed interest payments.

Government Policy

The actions taken by a government to influence or control various aspects of its economy or society.

Taxes On Saving

Charges imposed by government on the interest earned from savings in financial institutions.

National Saving

The total amount of saving in a country, which includes both private savings and public (government) savings.