Scarcity (Fundamentals of Econ)

Something we desire but that is not necessary for survival

• Want

• Need

• Good

• Service

Physical objects that someone produces

• Want

• Need

• Good

• Service

SELECT ALL THAT APPLY: Which one of these is an example of a scarce resource?

• Time

• Money

• Food

• Oil

The fact that there are limited amounts of goods and services to meet unlimited wants is called:

• Scarcity

• Shortage

• Surplus

• Economics

Economics is the study of how people seek to satisfy their needs and wants by making choices

• True

• False

Scarcity forces us to make economic decisions

• True

• False

An opportunity cost is

• usually absent in a command economy.
• when goods are recycled into other goods.
• the next-best alternative you give up in order to do something else.
• is only an issue when there is not a scarcity of goods and resources.

A friend offers you a Coke, a Dr. Pepper, or a 7-Up. You don't like Coke, so after some thought, you take the Dr. Pepper. What is the opportunity cost of your choice?

• The Coke
• The 7-Up
• The Dr. Pepper
• Nothing, because the drink was free.

Why do all societies have to make decisions about how resources will be used?

• People are greedy

• There are not enough resources for those who want them

• Resources are too expensive for most people

• Because there is a huge gap between the rich and poor

Scarcity is defined as a limited supply of resources and...

• limited wants for those resources

• unlimited resources

• limited resources

• unlimited wants for available resources