The Principle of Scarcity Applies To

question 24

Multiple Choice

The principle of scarcity applies to:

• A) the poor exclusively.
• B) all consumers.
• C) all firms.
• D) everyone-consumers, firms, governments, and nations.

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Definitions:

Infant-Industry Argument

The economic rationale that new or emerging industries should be protected from international competition until they become mature and competitive.

Political Pressure

The use of influence or persuasion by individuals or groups, often through lobbying or campaigning, to affect governmental policy or decisions.

Tariff

A tax imposed by a government on imports or exports of goods.

Voluntary Exchange

An economic transaction where two parties willingly trade goods or services without coercion, each party benefiting from the trade.