There Are Not Enough of Four Goods to Satisfy the Wants

question 219

Multiple Choice

There are not enough of four goods to satisfy the wants of people. For good A, this is true when the price is $100. This is true for good B at a price of $10, for good C at a price of $1, and for good D at a price of zero. Which situation reflects scarcity rather than shortage?

• A) A
• B) B
• C) C
• D) D

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Definitions:

Mean Absolute Deviation

The average of the absolute differences between each data point in a set and the mean of that set.

Actual Value

The real, true, or observed value of a variable or attribute, without estimation or error.

Forecast Value

An estimate of a future numerical quantity, often used in the context of sales, weather, or financial performance.

Delphi Method

An iterative process used for collecting and distilling the knowledge of a panel of experts through a series of questionnaires interspersed with feedback.