Introduction to Economics Quiz 7

Opportunity Cost is

• The value of the alternatives you didn't choose

• The value of the second best alternative

• The negative aspects of an action

• The choice you made

All of the following are possible opportunity costs to the decision to go out for Pizza

• You could have gone out for Chinese food
• Eaten at home instead
• You could have gone to your friends house
• You will have consumed a lot of food

All of the following may be benefits of going to school except

• Getting an education
• Getting less sleep
• Seeing your friends
• Not sitting at home being bored

All of the following are trade-offs except

• A teenager decided to choose the smarties over the stickers, pencils, and tissues
• A teenager decides to study instead of sleeping or being on her phone
• Ford decides to make hybrids rather than SUVs
• McDonald's needs to decide how many hamburgers to buy

Which is true about scarcity?

• All resources are scarce but some are more scarce than others
• Scarcity will go away if people use their resources to their fullest potential
• Scarcity does not exist in places where people are rich
• Scarcity is not a reason why people have to make economic decisions

Which statement is true

• Scarcity doesn't exist for everyone
• Nothing in life is free
• Rarely do we use economic thinking
• Sometimes there is no downside to a decision

The study of economics includes all of these as part of its definition except

• Unlimited wants and needs but limited resources
• The way we use scarce resources
• The decisions we make
• Business opportunities created

What is scarce in the following scenario: You have to go to work but if you work a lot of hours you are going to be very tired

• Work
• Money
• Sleep
• Time

What is the best example of scarcity

• The restuarant is not crowded tonight 
• The school parking lot only has 150 spaces but 200 students want to park there
• There are 500 houses in the subdivision and 250 of them are occupied
• A person decided to dye her hair blonde instead of red

Which concept is most fundamentally related to scarcity?

• Choice
• External costs
• Benefits
• Learned behaviors