Scarcity Implies That the Allocation Scheme Chosen by Society Can

question 61

Multiple Choice

Scarcity implies that the allocation scheme chosen by society can

• A)not make more of any one good.
• B)typically make more of a good but at the expense of making less of another.
• C)always make more of all goods simultaneously.

---

Definitions:

Acid-Test Ratio

Acid-test ratio is a financial metric used to determine a company's short-term liquidity position by comparing its most liquid assets to its current liabilities.

Accounts Receivable Turnover

A financial ratio indicating how many times a company's receivables are turned over and collected in cash during a period.

Current Ratio

A liquidity ratio that measures a company’s ability to pay short-term and long-term obligations, calculated as current assets divided by current liabilities.

Total Current Assets

The sum of all assets likely to be converted into cash within a year, including cash, marketable securities, accounts receivable, and inventory.