Which of the Following Is True

question 216

Multiple Choice

Which of the following is true?

• A)Poverty could be eliminated but scarcity could not.
• B)Scarcity could be eliminated but poverty could not.
• C)Both scarcity and poverty could be eliminated.
• D)Neither scarcity nor poverty could be eliminated.

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Definitions:

Pareto Optimal

A condition where resources are distributed in such a way that improving the situation of one person necessitates worsening the situation of another person.

Utility Function

Represents the relationship between the quantities of goods consumed and the level of happiness or utility derived from them.

Initial Endowment

The initial allocation of resources or goods that an individual or firm has before any trade takes place in an economic model.

Initial Endowment

The initial quantity of goods, services, or resources an individual, firm, or economy possesses.