How does scarcity affect customers?
(1 point)
Limited time prevents customers from making decisions.
It encourages strong economic growth.
Limited money and resources forces consumers to make choices.
Limited wants and needs limit customers to small purchases.
Limited money and resources force consumers to make choices.
Which of these BEST represents a capital investment for a company?
-buying new equipment
A computer programmer, bank teller, and construction worker are all examples of
-human resources
Getting the goods and services that you want by offering a different good or service (not money) as payment is called _____________________________.
-Bartering
Maria goes on a shopping trip to get ready for her vacation. She loads her cart with a new purse for $12.00, a sun hat for $4.00, magazines for $6.00, and a beach towel for $4.00. When she gets to the register, she realizes she only has $20.00 in her pocket. Use the passage to answer the question. If Maria decides to purchase the sun hat, towel, and bathing suit, what is the opportunity cost of her purchase?
-The magazines
According to the law of demand, what role do low prices serve for buyers?
-Reward
How does scarcity affect customers?
- Limited money and resources forces consumers to make choices.
Which of the following goods or services is an import to the United States?
- Oil bought by the United States from the Middle East.
Which of the following is a characteristic of a Command Economy?
- Government control.
Which of these is an example of a monetary incentive?
- Earning an allowance for doing chores.
Which situation is more likely to occur in a Market Economy than a Command Economy?
-A citizen designs a new game and opens a store to sell it.
Trade barriers are designed to protect producers in the country from being put out of business by foreign producers with lower prices & to prevent trade deficits from happening.
- True.
When are equilibrium prices achieved?
- When supply equals demand.
Match the resources with the kind of resource they belong to.
- Natural: coal, Human: chef, Capital: computer.
A surplus means that a business made too much and may waste money on resources making products that will not get used or be thrown out.
- Surplus.
What does a relative price compare?
- The price of one good or service compared to another similar one.
A popular cell phone manufacturer begins selling a new phone with many unique features and is improved. Lots of people want to buy the new phone. The old phone cost $149.00. What is the most likely price of the new phone?
- $199.
A substitute is an equivalent or comparable good or service, which can drop demand for the original good or service, lowering prices over time.
- Substitute.
The law of demand describes the relationship between prices and demand.
- Demand.
If many buyers want a good or service that is in low supply, the price will most likely increase.
- Increase.
Price competition in the market, including price wars between competitors, typically benefits the consumer (buyer).
- Consumer (buyer).
Correct! Price competition in the market typically benefits the consumer (buyer).
Limited money and resources forces consumers to make choices. Scarcity affects customers by limiting the availability of goods and services. When resources are scarce, customers have to decide how they will allocate their limited financial resources to fulfill their wants and needs. They are forced to prioritize and make choices regarding which goods and services they can afford and which ones they have to forgo. Scarcity thus impacts customers by necessitating decision-making based on limited resources.
The correct answer is: Limited money and resources force consumers to make choices.
Scarcity refers to the limited availability of resources, goods, or services compared to the unlimited wants and needs of individuals. This scarcity directly affects customers in several ways. One of the key impacts is that it forces customers to make choices due to the limited availability of goods and services.
When resources are scarce, customers have to prioritize and allocate their limited money and resources to fulfill their most pressing wants and needs. They have to carefully consider their options and make decisions about which products or services to purchase, emphasizing those that are most valuable or important to them.
For example, if a customer has a limited budget, they may have to choose between buying a new phone or going on a vacation. They cannot have both due to the scarcity of their money and resources. This need to make choices is a direct result of limited money and resources, which are characteristic of a scarce economic environment.
Therefore, scarcity affects customers by making them prioritize their needs and allocate their limited resources accordingly.