Scarcity

question 104

Multiple Choice

Scarcity

• A)exists because people have wants that are unlimited relative to the availability of resources to satisfy those wants
• B)applies when a resource is not freely available
• C)means that each society and each individual must make choices
• D)exists in all societies
• E)all of the above are true

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Definitions:

Fixed Operating Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced.

Straight-Line Depreciation

An approach to apportion the cost of a tangible asset throughout its operational life in equal yearly sums.

Net Present Value

A financial calculation used to determine the value of a series of future cash flows by discounting them back to their value in today's dollars.