Choices and Costs Review

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

• tradeoffs

• decisions

• choices

• opportunities

When you make a choice, you often have to give up other options...the most valuable option not chosen is the:

• shortage

• trade off

• alternatives

• opportunity cost

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

• needs

• cost

• scarcity

• surplus

What is opportunity cost?

• your choice

• what you give up

What is scarcity?

• a surplus of resources

• a shortage of resources

Which one of the following is an opportunity cost?

• You accidentally fall asleep at a friends house making you late and your parents ground you.

• You run a red light by accident and you get a ticket.

• You choose to give up math to study for history.

• In a softball game, you miss the ball and strike out.

In economics a decision is free if:

• There is no money involved.

• There are no products involved.

• There is no exchange with another person.

• A decision is never free. There is usually an alternative which results in an opportunity cost. Not free.

These are the things we desire to have.

• needs

• wants

• costs

• goals

True/False: Human will mostly exceed available resources.

• true

• false

The concept used to represent governments making choices about how to allocate resources is called:

• military or education

• health care or shopping

• guns or butter

• netflix or hulu