Scarcity

question 174

Multiple Choice

Scarcity

• A) persists only because countries have failed to achieve continuous full employment.
• B) persists because economic wants exceed available resources.
• C) has been solved in all industrialized nations.
• D) has been eliminated in affluent societies such as the United States and Canada.

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing between options.

Capital

Economic resources that are used to create goods and services, such as buildings, machinery, and equipment.

Accounting Profit

Total revenue minus total explicit cost

Economic Profit

The distinction in the amount between total sales and all costs, inclusive of apparent and implied expenses.