Scarcity and opportunity quiz

" Plans to increase Alaskan oil Drilling"

What is an economic cost most directly associated with the headline?

• Less undeveloped land

• increased fuel prices

• decreased revenues

• greater job opportunities

The governor of Maryland chose to cut spending on road construction in order to increase spending for school construction.

Which principle best demonstrated by this decision?

• Economic freedom

• Opportunity Cost

• price Control

• supply and demand

A local government has limited government amount of money to spend. They decide to spend more money on cleaning up pollution than on public assistance programs.

Which opportunity cost of this decision?

• Environmental protection

• The welfare of citizens

• national security

• protection against natural disaster

Which of these is an economic benefit of lower tax rates?

• more consumer spending

• expanded government programs

• better public services

• a greater number of government employees

Legislature to provide assistance to first time home buyers

in response to rising housing cost, the state legislature has voted to provide financial assistance to low-income families to help purchase their first house.

The action described in the passage above is intended to?

• Support local businesses

• Generate revenue for the city

• Promote economic equality in the area

• limit support for local business

The federal minimum wage in 2001 was $5.15 hour

Which of these best describes why the federal government would raise the minimum wage?

• to help workers find employment

• to help workers' wages keep up with inflation

• to increase the tax on workers' wages

• to make sure all workers receive the same pay

Which of these is an economic benefit of the federal minimum wage law?

• Workers are guaranteed a certain income

• Employers are encouraged to hire more workers

• Employers are required to train more workers

• Workers are allowed to organize into unions

Which of the following scenarios would illustrate the principle of opportunity cost?

• A boy has only three dollars to spend when going to the mall

• Congress reviews its annual budget

• Governor O'Malley spends money on crime prevention rather than the environment

• A lobbyist persuades Congressmen to support new legislation

A school district has a limited amount of money to spend. They decide to spend money fixing the school buildings rather than providing new textbooks

Which of the following is the opportunity cost of this decision?

• New textbooks

• new School buildings

• increased transportation between schools

• new school roofs

What is the opportunity cost for state governments that spend state money during natural disasters?

• Main highway between states may be blocked

• prices for snow removal equipment may increase

• other services offered by the state may have to be cut

• state government may receive additional highway funds