Quiz on Shortages and Scarcity

How is a shortage different from scarcity?

Do shortages always exist?

• Yes, shortages are always present.
• Shortages only occur in specific markets.
• No, shortages do not always exist.
• Shortages are a permanent economic condition.

What is an example of a shortage during the height of the pandemic in 2020?

• Surplus of personal protective equipment (PPE) like masks and gloves.
• Shortage of toilet paper and cleaning supplies.
• Shortage of food delivery services and restaurants.
• Shortage of personal protective equipment (PPE) like masks and gloves.

Identify an example of each of the factors of production.

The fundamental problem of economics is:

• to establish an equitable system of personal and business taxation.

• to establish a democratic political framework for the provision of social goods and services.

• the scarcity of factors of production relative to the unlimited wants of humans.

• to achieve a more equitable distribution of money income in order to mitigate poverty.

Which of the following is an example of an investment in human capital?

• A company builds a new factory.

• A state puts in a new highway.

• A business trains a new employee.

• A country builds new bridges.

Louise has a choice. She can either buy a book or go see a movie with her friends. She decides to go to the movie with her friends. What is her opportunity cost of that decision?

• The enjoyment of spending time with her friends.

• The enjoyment of reading the book.

• The movie could be really bad and a waste of money.

• All of the above.

The opportunity cost associated with going to college instead of taking a full-time job for $20,000 per year could include:

• The alternative use of the $20,000 to buy a car.

• The alternative use of the $20,000 used to pay for a vacation.

• Giving up $80,000 of income while you attend college for four years.

• All of the above.

What is the opportunity cost of choosing to spend an evening studying instead of going out with friends?

• All of the above.

• The cost of the study materials.

• The enjoyment of socializing with friends.

• The knowledge gained from studying.

Which of the following scenarios best illustrates the concept of scarcity in economics?

• A business hires more employees to meet demand.

• A government implements a new tax policy.

• A person has to choose between buying a new phone or saving money for a vacation.

• A company decides to increase its production of goods.