The Existence of Scarcity Means That

question 166

Multiple Choice

The existence of scarcity means that

• A) there are not enough resources to satisfy unlimited human wants.
• B) firms will increase their production to eliminate the scarcity.
• C) the government will step in to eliminate the scarcity.
• D) firms working with the government will allocate resources to eliminate the scarcity.

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Definitions:

Bolivars

The currency of Venezuela.

Uncovered Interest Rate Parity

A theory suggesting that the difference between the interest rates of two countries will equal the expected change in exchange rates between the countries' currencies, without the protection of forward contracts.

Spot Rate

The current price or rate for immediate settlement of a commodity, security, or currency exchange.

Initial Cost

The upfront expenditure associated with the purchase or investment in an asset or project.