What is the difference between a shortage and scarcity?

Scarcity results from falling prices.

Scarcity concerns a single item.

Which of the following is the kind of decision that can be made at the margin?

whether or not to hire new workers

whether or not to go on a vacation

whether or not to build an extra room on a home

whether to have a dog or a cat as a pet

What can a decision-making grid do?

help you determine some of the opportunity costs for your decision

tell you the right decision to make

show you every possible consequence of your decision

show you every possible benefit of your decision

Every decision involves trade-offs because

everyone’s resources are limited.

everyone has to make decisions.

some people have more money than others.

some decisions are made for business, others for society.

The line on a production possibilities curve showing the relative amounts of two types of goods produced using all resources is called the

production possibilities frontier.

maximum possible production line.

Which of the following lists of factors of production would an economist categorize as land?

iron ore, natural gas, fertile soil, water

factories, office buildings, assembly lines, workers

farm fields, tractors, pesticides, fertilizers

dams, bridges, rock quarries, oil wells

Which of the following people is an entrepreneur?

a person who starts an all-organic cleaning supplies business that employs others

a person who earns a lot of money as a singer or dancer

a person who creates a game and sells it to a game manufacturer

a person who works as a highly-paid computer programmer

Which of the following is an example of a shortage?

A type of doll is not available because a limited number were made.

Water cannot be used to irrigate one crop because it is used for another.

Kumquats are not available because few people want to buy them.

Workers are not available because they have other jobs.

You bought two new CDs with the last $30 in your checking account, and your next payday is on Monday. What is the opportunity cost of these CDs?

the night out with your friends that you miss because you can’t afford it now

the difference between the cost to produce the CDs and the price you paid for them

the $30 check that you wrote for the CDs

the satisfaction of knowing you are the first of your friends to have these CDs

The economic concept of guns or butter means that

a government must decide to produce more or less military or consumer goods.

a person can spend money on either sports equipment or food.

a company must decide whether to manufacture guns or butter.

a government can buy unlimited military and civilian goods if it is rich enough.

An efficient economy is one that

uses its resources to make the most goods and services

creates new resources through ongoing research and development.

conserves its resources through underutilization.

does not face the problem of scarcity.

What is the difference between a shortage and a scarcity?

A shortage can be temporary or long-term, but scarcity always exists.

A shortage results from rising prices; scarcity results from falling prices.

A shortage is a lack of all goods and services; scarcity concerns a single item.

There is no real difference between a shortage and a scarcity.

Topic 1 Lesson 1-3 Test

Authored by Jeff Laing

Social Studies

12th Grade

Used 107+ times

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MULTIPLE CHOICE QUESTION

2 mins • 1 pt

Which of the following are factors of production?

capital and land

scarcity and shortages

technology and productivity

economics and business decisions

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

something essential for survival

need

want

goods

services

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

something people desire that is not necessary for survival

need

want

goods

services

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

physical objects that someone produces

need

want

good

services

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

actions or activities that one person performs for another

need

want

good

services

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

principle that limited amounts of goods and services are available to meet unlimited wants

scarcity

shortage

entrepreneur

factors of production

trade-off

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

person who decides how to combine resources to create goods and services

scarcity

shortage

entrepreneur

factors of production

labor

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Topic 1 Lesson 1-3 Test

Which of the following are factors of production?

something essential for survival

something people desire that is not necessary for survival

physical objects that someone produces

actions or activities that one person performs for another

principle that limited amounts of goods and services are available to meet unlimited wants

person who decides how to combine resources to create goods and services

resources that are used to make goods and services

effort people devote to tasks for which they are paid

all natural resources used to make goods and services

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