Which of the Following Statements Is True About Scarcity

question 323

Multiple Choice

Which of the following statements is true about scarcity?

• A) Scarcity refers to the situation in which unlimited wants exceed limited resources.
• B) Scarcity is not a problem for the wealthy.
• C) Scarcity is only a problem when a country has too large a population.
• D) Scarcity arises when there is a wide disparity in income distribution.

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Definitions:

Liquid Investments

Assets that can be easily converted into cash with minimal loss in value, ensuring quick accessibility of funds when needed.

Administrative Reason

A justification or explanation based on the requirements or procedures of management or bureaucracy.

Emergency Needs

Immediate financial requirements that arise unexpectedly, requiring quick access to funds.

Lock Boxes

A cash management service offered by banks involving the collection of payments from a corporation's customers, aiming to reduce the time it takes for companies to receive payments.