The Scarcity Principle Indicates That

question 96

Multiple Choice

The scarcity principle indicates that:

• A) no matter how much one has, it is never enough.
• B) compared to 100 years ago, individuals have less time today.
• C) with limited resources, having more of "this" means having less of "that".
• D) because tradeoffs must be made, resources are therefore scarce.

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Definitions:

Direct Labor Hours

The total hours worked by employees directly involved in manufacturing a product or providing a service.

Baking Department

A division within a business that specializes in the preparation and production of baked goods.

Overhead Costs

Indirect costs associated with operating a business, which can include rent, utilities, and administrative expenses.

Plantwide Overhead Rate

A single overhead absorption rate calculated for an entire manufacturing facility, applied uniformly to all products.