Practice Quiz 1.1: Scarcity and Opportunity Cost

The usefulness of something in satisfying human wants and needs is called:

• Utility

• Productivity

• Efficiency

• Scarcity

The use of resources which does not satisfy wants and needs as much as it could possibly have done would be:

• inefficient.

• unproductive.

• scarce.

• a trade-off.

Which of the following is not a scarce resource?

• Wind

• Oil

• Drinking Water

• Time

The single problem that economics fundamentally addresses is:

The opportunity cost of shifting from point A to C would be:

• 100 units of clothes

• 50 units of clothes

• 100 units of food

• 75 units of food

The opportunity cost of shifting from point B to C would be:

• 100 units of clothes

• 50 units of clothes

• 75 units of food

• 25 units of food

The utility of shifting from point D to A would be:

• 100 units of clothes

• 50 units of clothes

• 75 units of food

• 25 units of food

If the curve shifted to intersect with point F, it would mean each of the following might have happened, except:

• gained access to new resources

• a recession made the economy less productive

• new technology increases production

• trade makes resource allocation more efficient

Match the following

• Goods

• Things people aspire to have to improve their lives

• Wants

• Tangible items produced by labor

• Needs

• Satisfying needs or wants through actions

• Services

• Things people need in order to survive

Which of the following are factors of production? (select all that apply)

• Land

• Workers

• Factories

• Culture