Which of the Following Statements Regarding the Basic Economic Problem

question 117

Multiple Choice

Which of the following statements regarding the basic economic problem of scarcity is correct?​

• A)The problem exists only in countries that are not highly industrialized.
• B)The problem is likely to disappear as production increases.
• C)The problem is sure to disappear as technology improves.
• D)The problem will exist as long as resources are available in limited amounts.
• E)The problem will disappear as a person's income falls.

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Definitions:

Cash Flow

The total volume of financial transfers happening within a business, crucially affecting its ability to handle financial obligations.

Net Cash Flow

The difference between a company's cash inflows and outflows within a specified period.

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets, indicating its leverage level.

Times Interest Earned Ratio

A measure of a company's ability to meet its debt obligations, calculated by dividing earnings before interest and taxes by interest expense.