Scarcity

The difference between scarcity and shortage is

• scarcity is a natural & re-occurring condition; shortage is a man-made condition

• shortage only happens with new products

• shortage is a natural & re-occurring condition; scarcity is a man-made condition

• shortage is the fundamental, universal economic problem

George earns a $250 bonus at his job for increasing his output by an additional 50% two weeks in a row. He makes a list of what he wants to buy with his bonus: 1: the latest model of Adidas athletic shoes; 2: Air Pods; 3: a new coat. He buys Adidas. What is his opportunity cost?

• the Air Pods

• the shoes

• the coat

• the cash

Opportunity cost (OC) can be described as

• your number 1 tradeoff when making a choice

• the number 2 alternative in your list of choices

• is the next best choice and one you didn't choose

• all of these answers are examples of opportunity cost (OC)

Why do we study economics?

• to become independently wealthy

• because the state requires that we do so and we just love learning about the economy

• because we want to graduate

• although all these answers are technically correct, the most correct answer is:to learn how to make wise decisions to satisfy unlimited wants using limited resources

Scarcity exists because_______.

• We don't have enough resources

• We are poor.

• Our resources are insufficient to satisfy our wants(goals).

The inbalance between goals and the resources to achieve those goals is called

• shortage

• surplus

• scarcity

• insufficiency

can help you achieve your goals.

• Resources

• Decisions

• Alternatives

• Scarcity

What is the fundamental economic problem that arises because resources are limited and human wants are unlimited?

• A) Inflation

• B) Scarcity

• C) Recession

• D) Surplus

Which of the following is NOT a consequence of scarcity?

• A) Opportunity cost

• B) Need for choice

• C) Unlimited resources

• D) Trade-offs

In economics, what term describes the cost of the next best alternative foregone when a choice is made?

• A) Opportunity cost

• B) Trade-off

• C) Scarcity

• D) Budget constraint