Scarcity and Opportunity Cost Review

These are the things we desire to have.

• Wants

• Goals

• Opportunity Costs

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

• Choices

• Opportunities

• Houses

• Desires

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.

What is it called if we ran out of coffee creamer?

• Scarcity

• Opportunity Cost

• Producer

• Services

A benefit is something good or helpful.

• True
• False

Scarcity is only a problem for poor people.

• True

• False

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 

Trade-offs create this. It is the thing that you DO NOT chose. It is what you have to give up in order to get something else. It is your 2nd BEST ALTERNATIVE. 

• Trade-offs
• Opportunity Cost
• Scarcity
• Production Possibilities Curve

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

• Resources

• Materials

• Wants

• Scarcities

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

• Choices

• Opportunities

• Houses

• Desires