Scarcity & Choice

The branch of knowledge concerned with the production, consumption, and transfer of wealth

• Economics

• Scarcity

• Resources

• Choice

Which is a need?

• Coffee

• Water

• Gatorade

•    Pop

Entrepreneurship is often considered the fourth factor of production since it is necessary for an entrepreneur to assemble the factors of production.

• True

• False

The opportunity cost is best defined as:

• The next best use alternative use of money, time, or resources when making a choice

• The list of alternatives that are available when making a choice

• The diagram represents the maximum number of goods that can be sold

• A simplified version of a complex concept or behaviour

A person who provides goods or services

• Consumer

• Want

• Need

• Producer

Why do we study economics?

• Because the state requires that we do so and we just love learning about the economy

• To become independently wealthy

• Because we want to graduate

• Although all these answers are technically correct, the most correct answer is: to learn how to make wise decisions to satisfy unlimited wants using limited resources.

_______ is the fundamental, universal, and perpetual economic problem that no one is immune to.

• Price floors/ price ceilings

• Shortage

• Scarcity

• The study of microeconomics

Opportunity Cost (OC) can be described as

• The number 2 alternative in your list of choices

• The next best choice and one you didn’t choose

• Your number 1 tradeoff when making a choice

• Your most desirable tradeoff

• All of these answers are examples of Opportunity cost (OC)

  The 4 factors of production (FOP) are:

• Rent for land, wages or labor, profit for capital, interest or entrepreneurship

• Land, labour, capital, entrepreneurship

• Land, Labour, Physical capital, financial capital

• Land, labor, resources, profits

The difference between scarcity and shortage is:

• Scarcity is a natural and re-occurring condition; shortage is a man-made condition

• Occurring condition; shortage is a man-made condition, shortage doesn’t impact everyone, whereas shortage does impact all people.

• The shortage is a natural and re-occurring condition; scarcity is a man-made condition

• The shortage is a fundamental, universal economic problem.