Scarcity, Opportunity Cost, Four Factor of production

Something we desire but that is not necessary for survival

• Want

• Need

• Good

• Service

Something essential for survival

• Want

• Need

• Good

• Service

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

• Scarcity

• Shortage

• Surplus

• Economics

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.

You make an economic decision which has an opportunity cost. In economic terms what are all the other possible alternatives known as

• Tradeoffs

• Choices

• Gained benefit

• Rational choice

All of the following are factors of production EXCEPT

• land
• money
• labor
• capital

The resources used to make all goods & services are called

• Natural Resources

• Factors of Production

• Goods & Services

• Renewable Resources

A capital resource is:

• Gifts of nature

• A person who risks their own time and money to start a business

• Money that is left over after paying operating costs

• Man made things that help make a good or service

Which scenario best illustrates the law of diminishing marginal utility?

• A car breaks down more often as it gets older.
• A collector of china figurines is eager to get a new one.
• Someone who doesn’t listen to music does not care about getting a new CD.
• A new toy is less exciting to a child with many toys than to a child with just a few.