The Scarcity Principle States That

question 124

Multiple Choice

The Scarcity Principle states that:

• A)people don't have enough money to buy what they want.
• B)society will eventually run out of resources.
• C)with limited resources, having more of one thing means having less of another.
• D)some countries have fewer resources than others.

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Definitions:

Opportunity Cost

The outcome of forgoing possible advantages from other alternatives by choosing one option.

Natural Resources

Resources present in nature, like minerals, forests, water, and fertile lands, that can be tapped for making money.

Absolute Advantage

The ability of a country or individual to produce a good or service more efficiently than other countries or individuals, using fewer resources.

Production Possibilities Frontiers

A curve depicting the maximum output combinations of two goods that can be produced given the resources and technology.