The Fundamental Problem of Economics Is

question 5

Multiple Choice

The fundamental problem of economics is

• A) that resources are too scarce to satisfy all wants simultaneously
• B) how to balance the federal budget
• C) deciding how large government should be
• D) how to keep the unemployment rate below 4%
• E) that firms have no way to know what consumers want to buy

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Definitions:

Slight Majority

A small more than half portion of a group or quantity, indicating a narrow margin over the minority.

Americans

are citizens of the United States of America or individuals closely associated with the country.

Bad Debts

Accounts receivable that a company does not expect to collect because customers are unable to pay their debts.

Credit Sales

Sales made by a business where the payment is received after the sale has been made, typically recorded as accounts receivable.