G4 Q2 Review 2

The two reasons why people cannot buy anything they need are ___________ and ___________.

• High prices and limited income

• High expenses and variable expenses

• High expenses and variable expenses

When Susan gives up buying a new watch in order to buy a cinema ticket that is considered _____________.

• Allowance

• Opportunity cost

• Price

____________ is considered as an opportunity cost, because you could have saved that amount of money instead of wasting it.

• Budget

• Saving

• Personal finance

When there is shortage in the resources of goods and services, that is called ___________.

• Scarcity

• Opportunity cost

• Expenses

When people have the ability to buy products they want and need because they have enough money, then these people can __________ these items.

• Afford

• Sell

• Poverty

Saving and scarcity, both, have an effect on opportunity cost.

• This statement is incorrect

• This statement is correct

• Maybe this statement is correct

It is necessary to be ___________ while taking decisions.

• Bothered

• Not caring

• Careful

____________ is when people cannot access important necessities such as water.

• Poverty

• Wisdom

• Opportunity cost

The item you do NOT choose while making decisions is considered ____________.

• Opportunity cost

• Scarcity

• Poverty

The lack/unavailability of important resources such as water, causes ___________.

• Opportunity cost

• Poverty

• Low prices