Scarcity Is Caused by

question 161

Multiple Choice

Scarcity is caused by

• A) unlimited wants running up against limited economic resources.
• B) lazy workers.
• C) mechanical breakdowns at factories.
• D) shortages.

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Definitions:

Majority Vote

A method of decision-making where the option that receives more than half of the votes wins.

Negative Externalities

Costs experienced by a third party not involved in a transaction, arising from production or consumption of goods and services.

Majority Voting

A decision-making process where the option that receives more than half of the votes cast by eligible voters is chosen.

Economic Efficiency

The optimal distribution of resources to maximize productivity and fulfill consumer preferences with minimal waste.