The Problem of Scarcity

question 25

Multiple Choice

The problem of scarcity:

• A)exists because resources are limited relative to wants.
• B)exists because wants are limited relative to resources.
• C)can be eliminated through appropriate government intervention in markets.
• D)does not exist in communist societies.
• E)does not exist in a barter economy.

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Definitions:

Accrual Basis

Accrual basis accounting is an accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.

Unemployment Compensation

Financial payments made to individuals who are unemployed through no fault of their own, intended to provide temporary financial assistance.

Jury Duty Pay

Compensation received by a juror for performing jury service in a court, which is considered taxable income.

Deducted

Subtracted or taken away from a total amount, often in the context of calculating taxable income or expenses.