Scarcity and Choice

Economics deals primarily with the concept of

• Scarcity

• Money

• Poverty

• Banking

Resources are

• Scarce for households but plentiful for economies

• Plentiful for households but scarce for economies

• Scarce for households and scarce for economies

• Plentiful for households and plentiful for economies

The overriding reason as to why households and societies face many decisions is that

• Resources are scarce

• Goods and Services are not scarce

• Incomes fluctuate with business cycles

• People, by nature, tend to disagree

The Opportunity Cost of an item is

• The number of hours needed to earn money to buy the item

• What you give up to get that item

• Usually less than the dollar value of the item

• The dollar value of the item

Human wants will always exceed available resources

• True

• False

Because of Scarcity, people are forced to make______about how to use resources.

• Choices

• Opportunities

• Houses

• Desires

Which of the following is the most fundamental issue that economics address?

• Choice of appropriate technology

• Reduction of unemployment

• Reduction of budget deficit

• Uses of Scarce resources

All societies face a trade- off for every decision for which of the following reasons?

• Some resources are always unemployed

• Resources have no alternatives uses

• Resources are not allocated efficiently

• Resources are scarce

What two factors contribute to scarcity?

• Unlimited resources and wants

• Unlimited wants and limited resources

• Unlimited resources and wants

• Limited resources and wants

Which is a Want?

• A place to live (Shelter)

• Oxygen

• Car

• Food