Which of the Following Statements Is True Regarding Scarcity

question 215

Multiple Choice

Which of the following statements is true regarding scarcity?

• A) Scarcity affects poorer countries only.
• B) An economy experiences scarcity only when the incomes of its citizens decline.
• C) Poor people experience scarcity more often than do rich people.
• D) All citizens in a wealthy economy experience scarcity.
• E) Scarcity could be overcome if people would make all choices in the social interest.

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Definitions:

Usury Laws

Regulations that impose a maximum interest rate that may be charged on loans.

Low-Income Borrowers

Individuals or households with low income levels who may face difficulties in obtaining loans or are considered high risk by lenders.

Legal Interest Rate

The maximum rate of interest that lenders can legally charge borrowers, often set by law or regulation.

Economic Profits

Profits that exceed the opportunity costs of all resources used by a firm, including both explicit and implicit costs.