Understanding Scarcity and Opportunity Cost

What is the term used to describe the limited nature of resources?

• Abundance

• Scarcity

• Surplus

• Excess

Which of the following is an example of a natural resource?

• A computer

• A factory

• A forest

• A car

What is the opportunity cost in the context of economics?

• The total cost of all resources used

• The cost of the next best alternative

• The cost of production

• The cost of labour

Which of the following is considered a labour resource?

• A machine

• A computer

• A worker's skills

• A piece of land

What is the main reason choices have to be made in economics?

• Unlimited resources

• Limited wants

• Limited resources

• Unlimited production

Which of the following is an example of a capital resource?

• Water

• A tractor

• A forest

• A worker

If someone buys a new phone instead of going to a concert, what is the opportunity cost?

• The cost of the phone

• The enjoyment of the concert

• The cost of the concert

• The phone's features

What is the term for inputs from nature used to produce goods and services?

• Capital resources

• Labour resources

• Natural resources

• Manufactured resources

Which of the following best describes capital resources?

• Inputs from nature

• Human skills and effort

• Manufactured goods used in production

• Financial investments

Why can't resources used in one type of production be used to produce something else?

• Because of abundance

• Because of scarcity

• Because of surplus

• Because of excess