Scarcity and Choice

True/False: Human wants will always exceed available resources.

• TRUE

• FALSE

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

• None of these answers

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. The value of what you gave up is called ________.

• Opportunity Cost

• Missed Opportunities

• Misused Resources

• Scarce Options

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 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.

This Economic term refers to the things you use to create goods and services.

• Resources

• Materials

• Wants

• Scarcities

A popular bakery has only a few ingredients left to make their products.  They could bake muffins or cookies, but they can’t make both.  The bakers decide to make cookies for their customers.  What is the opportunity cost of their decision?

• muffins 
• cookies 

Opportunity Cost is best defined as

• the value of the next best alternative that is given up due to the choice you made 
• The price you pay to purchase something 
• The benefit you gain by making a decision 
• The amount of debt you take on by making a decision