Goods and Services Are Scarce Because

question 131

Multiple Choice

Goods and services are scarce because:

• A)people are greedy.
• B)they are produced using scarce resources.
• C)firms keep production low in order to earn higher profits.
• D)they are produced by firms that seek profits.
• E)the government wants to maintain its power over the economy.

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Definitions:

Marginal Social Cost

The additional cost to society as a whole for producing one more unit of a good or service.

Public Good

A product or service that is available for all people to consume, regardless of whether any individual pays for it or not, typically provided by the government.

Common Resource

A natural or man-made resource that is non-excludable and rivalrous, such as fish in the ocean or a public park, which can lead to overuse and depletion.

Fishing in the Ocean

The activity of catching fish in the ocean for commercial, recreational, or subsistence purposes.