Scarcity Creates Competition for Resources,and Forces Trade-Offs on the Part

question 12

True/False

Scarcity creates competition for resources,and forces trade-offs on the part of every participant in the economy.

---

Definitions:

Free-Trade Policy

Economic policies that eliminate tariffs and trade barriers between countries to encourage trade and economic integration.

Import Quota

A government-imposed restriction on the quantity of a specific good that can be imported into a country.

Consumer Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually pay.

Total Surplus

The combined total of producer surplus and consumer surplus, indicating the overall societal benefits derived from the consumption and production of a service or product.