Topic 1 class quiz

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What is economics?

• Is the study of how our scarce productive resources are used to satisfy human wants.

• Is the social science that studies the choices that individuals, government and entire societies make as they cope with scarcity.

• is the study of calculations.

Define the term scarcity....

• Abundance of resources

• Limited resources.

• Equitable distribution of resources

• Excessive production of goods

Which of the following is a consequence of scarcity?

• Surplus

• Unlimited resources

• Choice

• Abundance

What is opportunity cost?

• The actual value/cost of production

• The monetary cost of goods and services

• The cost/value of the next best alternative foregone

• The cost of luxury items

How does scarcity relate to choice?

• Scarcity eliminates the need for making choices

• Choice is irrelevant in the face of scarcity

• Scarcity forces individuals to make choices about resource allocation

• Choices only exist in affluent societies

Which of the following is an example of scarcity?

• A beach with an unlimited supply of seashells

• A forest with an abundance of rare timber

• A city with an ample water supply

• A country facing a shortage of skilled workers