In Order for Scarcity to Exist, It Must Be That

question 56

Multiple Choice

In order for scarcity to exist, it must be that:

• A) there is a finite amount of a resource
• B) more people want the resource than there is available of it
• C) the resource is non-renewable
• D) nobody wants to purchase the resource

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Definitions:

Financial Intermediary

An intermediary that buys securities with funds that it obtains by issuing its own securities. An example is a common stock mutual fundthat buys common stocks with funds obtained by issuingshares in the mutual fund.

Financial Assets

Assets that derive value because of a contractual claim, such as stocks, bonds, bank deposits, and mutual funds.

Income Trusts

Investment vehicles that hold income-producing assets and pass on earnings to investors, typically in sectors like real estate, oil and gas, or business.

Double Taxation

A taxation principle referring to income taxes paid twice on the same source of earned income, it occurs most commonly with corporate dividends.