Scarcity Exists When

question 154

Multiple Choice

Scarcity exists when:

• A)making choices among two or more alternatives is not necessary.
• B)individuals can have more of any good without giving up anything.
• C)individuals can have more of one good but only by giving up something else.
• D)resources are unlimited.

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Definitions:

National Saving

The total income in an economy that remains after deducting consumption expenditures and government spending.

Interest Rate

The fraction of a quantity of money levied for borrowing it, often shown as a yearly percentage rate.

Investment

The act of allocating resources, usually money, in the expectation of generating an income or profit.

Government Bonds

Debt securities issued by a government to support government spending and obligations.