The Scarcity Principle Applies To

question 21

Multiple Choice

The scarcity principle applies to:

• A) all decisions.
• B) only market decisions, e.g., buying a car.
• C) only non-market decisions, e.g., watching a sunset.
• D) only the poor.

---

Definitions:

Bond Market

A financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market.

Appropriate Mix

The optimal combination or proportion of various elements to achieve a specific goal, often used in the context of investment portfolios.

Priced

Determined the monetary value of a product, service, or asset.

Cereal

A food product made from processed grains, typically eaten as a breakfast food, often fortified with vitamins.