Scarcity Opportunity Cost and Factors of Production

What is scarcity ?

• Abundance of resources
• Limited resources and unlimited wants

• Infinite supply of resources
• Unlimited availability of resources

Scarcity affects all societies .

• True

• False

Scarcity is the same as a shortage.

• True

• False

What does opportunity cost mean ?

• The potential benefits that are given up when one alternative is chosen over another.
• The cost of purchasing an opportunity
• The cost of not taking any opportunity
• The cost of an opportunity being too expensive

What are a persons two limited rsources ?

• Money and tools

• Time and jobs

• Money and time

• Credit and interest

What is a need?

• Nothing
• Something you have to have to live
• Something you would like to have
• Ice cream

Economics is the study of how people seek to satisfy their needs and wants by making choices.

• True
• False

Land includes...

• The "gifts of nature" or natural resources not created by human effort.

• the tools, equipment, and factories used in production of goods and services

• people with all their efforts and abilities

• individuals who start a new business or bring a product to market.

Capital refers to...

• The "gifts of nature" or natural resources not created by human effort.

• people with all their efforts and abilities

• the tools, equipment, and factories used in production of goods and services

• individuals who start a new business or bring a product to market.

Labor refers to...

• people with all their efforts and abilities

• individuals who start a new business or bring a product to market.

• the tools, equipment, and factories used in production of goods and services.

• The "gifts of nature" or natural resources not created by human effort.