The Problem of Scarcity

question 63

Multiple Choice

The problem of scarcity:

• A)exists because resources are limited relative to wants.
• B)exists because resources are unlimited relative to wants.
• C)is solved by economists using abstract models.
• D)can be eliminated through appropriate government intervention into markets.
• E)does not exist in communist societies.

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Definitions:

Net Exports

The disparity between the total amount a country exports and the total amount it imports.

Interest Rate

The percentage charged on borrowed money, or paid to investors, indicating the cost or profit of borrowing or lending.

Net Capital Outflow

The difference between a nation's total investment in foreign assets and the total foreign investment in its domestic assets over a certain period.

Exchange Rate

The worth of one currency when converted into another, indicating the amount of one currency that can be swapped for another.