1.1 Introduction to Economics: Scarcity and Choice

Open Ended

Can you think of a situation in your daily life where you had to make a choice because you couldn't have everything you wanted? Describe it.

Multiple Choice

Why is the concept of scarcity important in economics?

• Because it helps us understand how resources are allocated

• Because it explains why everything is free

• Because it eliminates the need for choices

• Because it only applies to poor countries

Multiple Choice

What is the difference between a shortage and scarcity?

• A shortage is temporary and can be fixed, while scarcity is a permanent condition due to limited resources.

• Scarcity only happens in poor countries, while shortages happen everywhere.

• A shortage is caused by unlimited wants, while scarcity is caused by poor planning.

• Scarcity is about money, while shortages are about goods.

Multiple Select

Which of the following statements about scarcity are correct?

• Scarcity exists because resources are limited and wants are unlimited.

• A shortage is the same as scarcity.

• Scarcity can be completely eliminated by efficient use of resources.

• Scarcity requires individuals and societies to make choices.

Open Ended

Explain in your own words why scarcity is a fundamental concept in economics.

Open Ended

Why must individuals, firms, and governments make choices according to economics?

Open Ended

What does the quote 'We must consult our means rather than our wishes' by George Washington have to do with the idea of scarcity?

Multiple Choice

Which of the following best describes the difference between a need and a want?

• A need is something essential for survival, while a want is something you would like to have but can live without.

• A need is something you buy for fun, while a want is something you must have.

• A need is always more expensive than a want.

• A want is something you must have to survive, while a need is optional.

Multiple Choice

From the images provided, select all that are examples of needs.

• Groceries, clothes, house

• Football, video game, phone

• Phone, house, football

• Groceries, video game, sky

Fill in the Blanks

Fill in the blank: Goods are physical objects, while

are actions that a person performs for another person.

Multiple Choice

Which of the following best defines resources?

• Materials from which goods and services are made

• Tools used to build houses

• Money used to buy things

• People who work in factories

Multiple Select

Which of the following are examples of natural resources?

• Land

• Timber

• Oil

• Machines

Fill in the Blanks

Physical tools used to produce goods and services are called

.

Multiple Select

Which of the following items used in a pizzeria are considered natural resources?

• Flour

• Paper Plates

• Oven

• Cheese

Multiple Choice

Which of the following is NOT considered a capital resource for a restaurant?

• Pizza oven

• Cash register

• Paper Plate

• Re-usable napkins

Open Ended

Who will get paid the most among the listed human resources in a restaurant, and why?

Multiple Choice

Which of the following best describes the difference between microeconomics and macroeconomics?

• Microeconomics studies individual units, while macroeconomics studies the economy as a whole.

• Microeconomics focuses on government policies, while macroeconomics focuses on businesses.

• Microeconomics deals with international trade, while macroeconomics deals with local markets.

• Microeconomics is about unemployment, while macroeconomics is about inflation.

Fill in the Blanks

The four factors of production are land, labor, capital, and

.

Multiple Select

Which of the following are examples of land as a factor of production?

• Water

• Sun

• Machinery

• Animals

Multiple Choice

What is an example of human capital?

• A tractor used on a farm

• A worker's knowledge gained from training

• A factory building

• A cash register

Multiple Choice

Which of the following best describes the role of an entrepreneur as a factor of production?

• Someone who provides labor for a business

• Someone who combines other factors of production to create goods and services

• Someone who only invests money in a business

• Someone who only manages employees

Open Ended

After learning about scarcity and choice, what is one question you still have or something you would like to know more about regarding this topic?

Open Ended

In your own words, explain what scarcity means and provide a real-world example to illustrate your explanation.