Scarcity Exists Because

question 109

Multiple Choice

Scarcity exists because

• A) there is a temporary disruption in the market supply.
• B) there is a shortage of goods caused by a natural disaster.
• C) there are not enough resources available to produce all the goods that people want.
• D) there is a shortage of labor throughout the world.

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Definitions:

Acid Test Ratio

A financial metric used to evaluate a company's short-term liquidity position by comparing its most liquid assets (excluding inventory) to its current liabilities.

Debt to Assets

A financial ratio that measures the proportion of a company’s total debt to its total assets, indicating the degree of leverage.

Financed by Creditors

A phrase indicating that a portion of a company's funding or assets has been obtained through borrowing from lenders.

Total Assets

The sum of all owned resources (assets) that have economic value which a company or individual possesses.