Scarcity and Opportunity Cost Quiz

These are the things we wish to have.

• Wants

• Goals

• Opportunity costs

• Needs

Due to scarcity, people are forced to make _________ about how to use resources.

• Opportunities

• Decisions

• Wishes

• Houses

In economics, a decision is never free because:

• There is usually an alternative that results in an opportunity cost.

• There is no exchange with another person.

• There are no products involved.

• There is no money involved.

The opportunity cost of a good is:

• Its price in dollars and cents.

• The price of the alternative goods lost.

• None of the other options.

• The alternative goods lost.

Amber had $80 and decided to buy a jacket for $70. What was her opportunity cost?

• Bag

• Shoes

• Jacket

• Dress

What is the term for the next best alternative that is forgone when making a decision?

• Demand

• Supply

• Opportunity cost

• Scarcity

Which of the following is NOT a result of scarcity?

• Unlimited resources

• Choices

• Opportunity costs

• Trade-offs

What does scarcity force people to do?

• Eliminate needs

• Ignore resources

• Make decisions

• Create resources

Which of the following options best describes opportunity cost?

• The total cost of all alternatives

• The money spent on a good

• The time invested in a task

• The value of the next best alternative

Why is every decision in economics associated with an opportunity cost?

• Decisions are always free

• Resources are unlimited

• Choices are unnecessary

• There are always alternatives