The Fact That Our Wants Are Unlimited but Our Resources

question 84

Multiple Choice

The fact that our wants are unlimited but our resources are limited implies that

• A) we should limit our wants.
• B) entrepreneurship has failed as an economic system.
• C) we have to make choices.
• D) the only way to make someone better off is to make someone else worse off.

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Definitions:

Cost Of Capital

The necessary rate of return to consider a capital expenditure project, like the development of a new factory, as viable.

Risk Profile

An evaluation of an individual's or organization's willingness to take risks, as well as their financial ability to manage the impact of those risks.

Incremental

Describing something as increasing or adding on, often in small or gradual steps.

Risk Analysis

The process of identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events.