The Term "Scarcity" in Economics Can Refer to the Fact

question 30

Multiple Choice

The term "scarcity" in economics can refer to the fact that:

• A) economic wants are limited and resources are abused.
• B) even in the richest country some people go hungry.
• C) no country can produce enough products to satisfy everybody's economic wants.
• D) it is impossible to produce too much of any particular good or service in a market economy.

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Definitions:

Expected Earnings

The forecasted income of a company, often used by investors to gauge the company's future profitability.

Common Shareholders' Equity

The amount of money that would be returned to shareholders if all the company's assets were liquidated and all its debts paid off.

Replacement Cost

The cost to replace an asset with another of similar kind and quality at current prices, without deduction for depreciation.

Book Value Per Share

A financial measure that calculates the per share value of a company based on common shareholders' equity in the business.