Scarcity and Opportunity Cost

These are the things we desire to have.

• Wants

• Goals

• Opportunity Costs

• Needs

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

• Scarcity

• Needs

• Opportunity Cost

• Shortage

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

• Choices

• Opportunities

• Houses

• Desires

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

What is opportunity cost?

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

What is scarcity?

• Having too many resources and not enough wants

• Having unlimited wants and not enough resources

Which one of the following is an opportunity cost?

• You stay out late and your parents ground you.

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

• You choose to give up watching movies with your friends to study for a math test.

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

Which factor of production is in this picture?

• Labor

• Land

• Physical Capital

• Human Capital

People who decide how to combine resources to create a new goods and services (like Hershey's chocolate) are called this...

• Entrepreneurs

• Firms

• Laborers

• Human Capital

Scarcity always exists (never goes away), however a shortage is...

• a short term problem when demand is greater than supply.

• a long term problem that can never be fixed.

• a short term problem when there is too much of a good.

• a long term problem when there is too much of a good.