Scarcity Implies That

question 112

Multiple Choice

Scarcity implies that

• A) people should limit their wants, since shortages exist.
• B) firms should be more efficient when producing goods.
• C) people must make choices.
• D) nonrenewable resources should never be used.

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Definitions:

Operating Leases

Operating leases are lease agreements that allow for the use of an asset but do not grant ownership rights of the asset to the lessee.

Note Disclosure

A detailed explanation added to financial statements providing additional context or information about the statements.

Future Cash Flows

Projections of cash revenues minus cash expenses, representing the amount of money a company expects to receive or pay out over a specific period.

Capital Lease

A lease agreement in which the lessee essentially buys an asset and pays for it over time, classifying the lease as a financial transaction in the balance sheet.