Scarcity and Opportunity Cost Quiz

Which of the following best summarizes the concept of scarcity?

• Life is not fair.

• Life is so hard.

• You can't have everything you want.

• People are selfish.

Scarcity exists because

• resources are insufficient to satisfy people's wants

• resources are limited

• people have wants

• people aren't willing to share their wealth

When does scarcity occur?

• When prices are too high.

• Always.

• When you can't find the product you want.

• When others have more than you.

Alternatives are always

• new ways of accomplishing goals

• better ways of accomplishing goals

• worse ways of accomplishing goals

• different ways of accomplishing goals

A budget is

• a way to spend your money

• a way to save money

• a way you choose to allocate scarce resources

How do you find your net income, assuming your total income comes from working at a job?

• Total expenses - gross wages

• Total expenses+gross wages

• Gross wages-taxes/deductions

Which of the following is free?

• "Buy one, get one free" box of cereal

• A T-shirt that you get for running a 10K race

• A ticket a friend gives you to a rock concert

• None of these are free

A choice always involves

• good or services

• income

• at least two alternatives

• money

A choice is free if

• there is no exchange with another person

• a decision is never free

• there are no products involved

• there is no money involved

When you make a choice, you face a(n)

• opportunity cost

• high cost

• low cost

• sunk cost