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"Scarcity Implies That Some Way of Rationing Goods Must Be

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Essay

"Scarcity implies that some way of rationing goods must be found." Explain what this statement means. How is this rationing done?


Definitions:

Rent Expense

The cost incurred by a business or individual for the use of a property or equipment.

Operating Cash Flow

The total amount of money generated by a company's normal business operations.

Net Income

The amount of money a company has left as profit after paying off all expenses and taxes from its gross income.

Dividends

are payments made by a corporation to its shareholders, typically from profits earned.

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