Scarcity/Opportunity Cost

Economic law number one is that _____ exists.

• money

• opportunities

• land

• scarcity

Economics is all about _____.

• money

• choices

• land

• opportunities

Which of these is NOT one of the three economic questions?

• What goods should be produced?

• How goods should be produced?

• Whom will goods be produced for?

• Where shall goods be produced?

Which definition best defines scarcity?

• Demand for a good/service that is greater than the availability of that good/service

• Benefits lost when choosing one option over another

• The willingness of consumers to purchase a given amount of a good/service at a given price

Which definition best defines opportunity cost?

• Demand for a good/service that is greater than the availability of that good/service

• The willingness of consumers to purchase a given amount of a good/service at a given price

• Benefits lost when choosing one option over another

Which definition best defines supply and demand?

• Demand for a good/service that is greater than the availability of that good/service

• Benefits lost when choosing one option over another

• The willingness of consumers to purchase a given amount of a good/service at a given price

All of these are examples of scarcity EXCEPT

• land

• water

• trash

• housing

A farmer chooses to plant wheat over corn. What is this an example of?

• scarcity

• supply and demand

• opportunity cost

• resources

Write a personal example of opportunity cost.

Explain why it is nearly impossible for everyone to have both their wants and needs met.