Imagine a World with Unlimited Resources,including Time

question 146

Multiple Choice

Imagine a world with unlimited resources,including time.On that planet,

• A) personal strife would not exist.
• B) the scarcity problem would not apply but the cost-benefit principle would.
• C) the cost-benefit principle would be irrelevant because trade-offs would be unnecessary.
• D) the scarcity problem would still apply.
• E) the discipline of economics would be more important.

---

Definitions:

Donated Land

This informs the recording of land gifted to an entity, valued at its fair market value at the time of donation as an asset on the balance sheet.

Donated Machinery

Assets received for free by an entity, where the fair market value of the machinery is recorded as both income and an asset on the balance sheet.

Volunteer Hours

The amount of time individuals spend performing unpaid services for nonprofit organizations or community projects.

Restricted Fund Method

An accounting practice where funds specified for certain purposes are kept separate in financial records to ensure their use only for those purposes.