Scarcity Exists Because

question 93

Multiple Choice

Scarcity exists because

• A) the majority of people in the world are poor.
• B) people are too greedy and refuse to share what they have with others.
• C) human wants exceed what can be produced with the limited resources available.
• D) not enough new technology is being used to eliminate scarcity.

Understand the concept of incremental and differential costs.

Know that sunk costs are irrelevant to future decision-making.

Recognize the relevance of out-of-pocket costs for current and future decisions.

Identify the importance of opportunity cost in decision-making.

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Definitions:

Probability .60

This refers to a likelihood or chance of something happening, expressed as sixty percent.

Chicken

A type of domesticated bird commonly raised for meat and eggs, and also a term used in various cultural contexts.

Payoff

The return or reward received from an investment or decision, often analyzed in financial and game theory contexts.

Pure Strategy Equilibria

A concept in game theory where each player chooses a single strategy that results in the best outcome for them, given the strategies chosen by other players in the game.