Scarcity and Opportunity costs

What is scarcity? 

• Having too many resources 
• Not  having enough resources 

What is the definition of opportunity cost?

• The chance that you will lose your money.

• The next best alternative that you give up.

• All of the choices you could have made but didn't.

• The money you spend to buy something.

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

• TRUE

• FALSE

These are the things we desire to have.

• Wants

• Goals

• Opportunity Costs

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...those things are called the...

• 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.

Scarcity is only a problem for poor people.

• True

• False