Which of the Following Sets of Terms Describes the Problem

question 231

Multiple Choice

Which of the following sets of terms describes the problem of scarcity in economics?

• A) goods, land, and needs
• B) labor, needs, and opportunity costs
• C) choices, opportunity costs, and trade-offs
• D) production, consumption, and wants

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Definitions:

Soft Capital Rationing

Internal constraints imposed by a company's management on the funds allocated for new investments, often due to budgetary constraints.

Financial Markets

Financial markets are platforms where individuals and entities can trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices reflective of supply and demand.

NPV Projects

Projects that are evaluated based on the Net Present Value method, helping in deciding whether they contribute positively to the company's value.

Soft Rationing

Refers to the internal limitations set by a company on the funds allocated for capital projects, despite having a strong financial position.