Scarcity and Economic Systems

True or False: We all feel the scarcity of time because there are not enough hours in the day.

• True

• False

One hour spent on an activity is an hour that you cannot spend doing a different activity. In economics, this trade-off is called ______________.

• scarcity

• sacrifice

• shortage

• opportunity cost

What does scarcity mean to humans?

• that we have to act irrationally

• that we need to use up all our resources for our comfort

• that we have to use our resources efficiently so that needs and wants are satisfied

• that we have to not use our resources at all because we will run out them if we keep using them

What makes a resource or good scarce? Select all that apply:

• Must be desirable.

• Must be limited in quantity.

• Must cost a lot of money.

• Must have more than one use.

Which of these is not a scarce item?

• Doctors

• Gold

• Clean Air

• Garbage

Which of these statements is correct?

• Scarcity requires people to make choices.

• Wealthy people do not experience scarcity.

• Scarcity only exists is less-developed countries.

• Expensive cars are not considered scarce.

TRUE or FALSE: We can have everything that we want because we have unlimited resources.

• TRUE

• FALSE

Something we desire but that is not necessary for survival

• Want

• Need

• Good

• Service

Why is time considered to be scarce?

• Humans live forever

• Humans do not live forever

• Humans can live forever because of cryonics

• Humans do not live forever if they choose not to

Economics is the study of how people seek to satisfy their needs and wants by making choices

• True

• False