There Is No Shortage of Scarce Resources in a Market

question 556

Multiple Choice

There is no shortage of scarce resources in a market economy because

• A)the government makes shortages illegal.
• B)resources are abundant in market economies.
• C)prices adjust to eliminate shortages.
• D)quantity supplied is always greater than quantity demanded in market economies.

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Definitions:

Illegal Term

A provision in a contract or agreement that is not enforceable by law because it violates legal statutes or principles.

Sale of Business

The process of transferring ownership of a business from one party to another.

Restrictive Covenant

A clause in a contract which limits certain actions of the parties, often used in employment and real estate agreements.

Restraint of Trade

Legal contracts or agreements that restrict one party's right to engage freely in business or trade, intended to protect business interests.