Scarcity and Opportunity Costs

Open Ended

What is a hard economic decision you had to make?

Multiple Choice

Limited Resources + Unlimited Wants =

• Scarcity

• Productivity

• Opportunity Cost

• Efficiency

Open Ended

What would your choice be in this situation?

Multiple Choice

Which one of these definitions best describe Opportunity Costs?

• The cost of making one decision over another.

• The cost for the opportunity to buy anything you want.

• The opportunity that will cost you loads of money.

Multiple Choice

When "wants are greater than the resources available to satisfy them," it is called...

• Scarcity

• Needs

• Opportunity Cost

• None of these answers

Multiple Choice

Because of scarcity, people are forced to make _________ about how to use resources.

• Choices

• Opportunities

• Houses

• Desires

Multiple Choice

When you make a choice, you often have to give up other options...those things are called the...

• Opportunity Cost

• Missed Opportunities

• Misused Resources

• Scarce Options

Multiple Choice

What is opportunity cost?

• your choice
• what you give up to make a choice

Multiple Choice

Why does scarcity exist?

• People are greedy.

• There are not enough resources to produce everyone’s wants.

• There are too many resources available.

• People have more wants than needs.

Multiple Choice

Scarcity forces people to choose, and when people choose:

• They bear an opportunity cost.

• They pay higher prices.

• Total economic output increases.

• The frontier shifts outward.

Multiple Choice

The reason people cannot have everything they want is because of

• shortages

• explicit alternatives

• scarcity

• credit

Multiple Choice

What is a graphical model that represents all of the different combinations of two goods that can be produced

• production possibilities curve (PPC)

• efficiency

• inefficient use (under-utilization) of resources

• contraction

Multiple Choice

Which of the following concepts can be modeled using a PPC?

• A society can produce more of any good just by reallocating its resources more efficiently

• Prices that the goods will sell for will be determined in a market

• Societies have preferences about what should be produced

• Governments, rather than markets, are more efficient allocators of resources

• When all resources are being used, making more of one good means making less of the other good.

Open Ended

What is something new you learned today? Or what do you still have questions about?