Question

Jane is a top-level executive and is very rich. Jane just ordered a car only to be told that she will have to wait three weeks for it to be delivered. Which of the following statements is true?
a. The car is not a scarce good.
b. The car is a scarce good.
c. Because Jane has unlimited funds, she incurs no opportunity cost in buying the car.
d. Jane paid too much for a car that wasn't ready on time.

Answer 1

Answer:

The correct answer is letter "B": The car is a scarce good.

Explanation:

Scarcity is the basic economic problem by which individuals have unlimited needs but finite resources to fulfill them. Scarce goods are those not easy to find, in danger of extinction or, when talking about products, which manufacturing implies long and usually expensive processes.

Thus, the type of vehicle Jane is trying to purchase can be considered scarce since its the dealership does not have it usually in its inventory. Otherwise, Jane would have had the car at the moment of the buy.