Scarcity

question 201

Multiple Choice

Scarcity:

• A)exists because basic human survival needs cannot be satisfied with available resources.
• B)occurs only in centrally planned economies.
• C)will likely be eliminated by technological progress.
• D)exists only in poor nations.
• E)occurs if there are insufficient resources to provide for human wants.

---

Definitions:

Variable Costs

Expenses that change in direct proportion to the amount of production or output.

Total Cost

The sum of all costs incurred by a business in the production of goods or services, including fixed and variable costs.

Prospective Sales

Forecasted or anticipated sales based on current trends, marketing strategies, and economic conditions.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the cost per unit of output decreases with increasing scale.