Scarity & Opportunity Cost Review

What is the problem all economies are trying to solve?

• There are limited wants and unlimited resources.
• There are unlimited wants and limited resources. 

What is Economics?

• The social science of people and choices.
• The mathematical science of how the economy works 
• The social science of supply and demand. 
• The mathematical science of people and choices.

What is the value of the next best alternative when one option is chosen over another?

• Command Economy

• Opportunity Cost

• Economic Value

• The Economic Problem

Scarcity means we must make a (a)   .

Who is affected by the condition of scarcity?

• The rich

• Large economies

• All societies

• Producers (ie: businesses)

Why do all societies have to make decisions about how resources will be used?

• People are greedy

• There are not enough resources for those who want them

• Resources are too expensive for most people

• Because there is a huge gap between the rich and poor

Which is NOT a scarce resource?

• Labor

• Trees

• Time

• Candy

Why do we have to make production choices about available resources?

• Too many resources for the demand

• Limited wants

• Unlimited resources

• Scarcity

Scarcity is defined as a limited supply of resources and...

• limited wants for those resources

• unlimited resources

• limited resources

• unlimited wants for available resources

Because of scarcity, people are forced to make _________ about how to use resources.

• Choices

• Opportunities

• Houses

• Desires