Scarcity

What is scarcity?

• Abundance of resources

• Limited resources to satisfy needs

• Unlimited availability of goods

• Excessive supply of services

How does scarcity affect the choices available to consumers in an economy?

• Reduces the choices

• Has no impact on choices

• Expands the choices

• Limits the choices

What is the opportunity cost associated with scarcity?

• The cost of all available options

• The cost of the least valuable option

• The cost of the most expensive option

• The cost of what is given up compared to the value of the alternative

What is an example of natural resource scarcity?

• Unlimited clean air

• Inexhaustible fossil fuels

• Depletion of overused resources

• Abundant water supply

How can scarcity affect the market equilibrium?

• Raises the price based on supply and demand

• Leads to a decrease in prices

• Causes an oversupply of goods

• It has no impact on market equilibrium

What is one way to deal with scarcity in terms of increasing supply?

• Ignoring the scarcity issue

• Reducing demand through quotas

• Rationing goods

• Implementing price caps

How does intentional scarcity impact the market?

• Creates a limited supply to benefit commercially

• Encourages overproduction

• Lowers prices

• Increases competition

How does scarcity impact the value of goods and services?

• Decreases their value

• Has no effect on their value

• Increases their value

• Stabilizes their value

What is the main goal of governments in keeping the money supply relatively scarce?

• To encourage inflation

• To promote overspending

• To maintain economic stability

• To discourage saving

How does scarcity impact the value of goods and services?

• Decreases their value

• Has no effect on their value

• Increases their value

• Stabilizes their value