The Scarcity Problem Refers to the Fact That

question 26

Multiple Choice

The scarcity problem refers to the fact that

• A) consumers do not have to make choices.
• B) consumers have limited wants in the face of unlimited resources.
• C) there are not many products available to consumers.
• D) consumers have unlimited needs and wants,but there are limited resources.
• E) there are unlimited resources available so consumers never have to make choices.

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Definitions:

Rising Prices

An economic situation where the general level of prices for goods and services increases over a period of time.

Costing Method

It is an accounting approach to determine the cost of a product or service, including methods such as standard costing, activity-based costing, and others.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.

Cost of Merchandise Sold

An expense account that reflects the direct costs associated with the goods sold by a company during an accounting period.