COST ACCOUNTING
INFORMATION FOR DECISION MAKING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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China has the resources we need.
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there aren’t enough resources to produce everyone’s wants
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everything is too expensive
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the government has control over all our resources
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Detailed explanation-1: -Scarcity exists because we have limited resources and unlimited wants. No society has ever had enough resources to produce all the goods and services its members wanted. Because of scarcity, all decisions involve costs.
Detailed explanation-2: -Scarcity is the condition of not being able to have all of the goods and services one wants. It exists because human wants for goods and services exceed the quantity of goods and services that can be produced using all available resources.
Detailed explanation-3: -Scarcity exists when human wants for goods and services exceed the available supply. People make decisions in their own self-interest-weighing benefits and costs.
Detailed explanation-4: -To economists, scarcity is the idea that resources (such as time, money, land, labor, capital, entrepreneurship, and natural resources) are only available in limited quantities, whereas wants are unlimited.