Virtual Learning Day 3

What is the primary reason that scarcity exists?

• People don't work hard enough

• Resources are unlimited but poorly distributed

• Wants are unlimited but resources are limited

• Government regulations limit production

When you make a choice, how many choices are you actually making?

• One choice only

• Two choices - what you choose and what you give up

• Three choices - past, present, and future

• No choices - decisions are made for you

What is an opportunity cost?

• The monetary cost of an item

• The time spent making a decision

• What you give up when making a choice

• The cost of running a business

Which group is NOT affected by scarcity?

• Consumers

• Producers

• Governments

• All of these groups are affected by scarcity

Why must governments make choices?

• Because they have unlimited resources

• Because they only serve businesses

• Because resources are limited but wants are unlimited

• Because consumers force them to

What best describes the relationship between goods and services and our ability to produce them?

• We can produce everything we want

• Our wants exceed our production ability

• We produce more than we want

• Production and wants are always equal

What is a direct result of scarcity?

• Having to make difficult choices

• Having unlimited resources

When a student chooses to play video games instead of studying for a test, what is the opportunity cost?

• The cost of the video game

• The time spent playing

• The potential better grade on the test

• The electricity used while playing

Which statement about scarcity is TRUE?

• It only affects poor countries

• It's a temporary problem

• It affects all individuals and organizations

• It can be completely eliminated

What is the main problem that scarcity creates for society?

• Too many resources

• The need to make choices about limited resources

• Too few wants and needs

• Unlimited production capacity