Scarcity - limited supply

What is scarcity?

• The idea that resources are unlimited, but wants and needs are limited

• The idea that resources and wants and needs are both limited

• The idea that resources are limited, but wants and needs are unlimited

• The idea that resources and wants and needs are both unlimited

Which of the following is NOT a factor of production?

• Entrepreneurship

• Land

• Money

• Capital

What is the concept of opportunity cost?

• The value of the least valuable alternative a person has to forego in order to make a choice

• The value of the highest-value alternative a person has to forego in order to make a choice

• The value of the next best alternative a person has to forego in order to make a choice

• The value of everything a person has to forego in order to make a choice

What is one cause of scarcity?

• Money

• Perception

• Entrepreneurship

• Natural Resources

Which of the following is NOT a cause of scarcity?

• Rapid increase in demand

• Rapid decrease in supply

• Unequal distribution of resources

• Perception of scarcity

What is the main purpose of properly valuing, choosing, and allocating resources in economics?

• To make the best use of limited resources

• To maximize profits for individuals

• To ensure equal distribution of resources

• To eliminate scarcity

Which of the following is a factor of production?

• Consumer goods

• Money

• Government regulations

• Labor

What is the value of the next best alternative a person has to forego in order to make a choice called?

• Choice cost

• Opportunity cost

• Scarcity cost

• Alternative cost

What is one example of unequal distribution of resources?

• A country with abundant natural resources

• A country with a well-developed infrastructure

• A country with equal access to education

• A country with limited access to clean water

What happens when demand increases more rapidly than supply?

• Scarcity increases

• Supply increases

• Scarcity decreases

• Prices decrease