ML FBLA Exploring Economics - Scarcity

What does the economic concept of scarcity refer to?

• Unlimited resources

• Limited resources

• Unlimited wants

• A surplus of goods

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

• Air

• Water

• Time

• Knowledge

Why do people face scarcity in their everyday lives?

• Because resources are unlimited

• Because resources are limited, but needs and wants are not

• Because of the abundance of goods and services

• Because people do not work hard enough

What is an example of human capital?

• A factory machine

• The skills of a worker

• A piece of land

• A natural resource like wood

When scarcity occurs, what must people do?

• Spend more money

• Make choices about how to use their limited resources

• Increase their production rates

• Ignore the limitations

What term describes the cost of the next best alternative when making a choice?

• Profit

• Scarcity

• Opportunity cost

• Utility

Which of the following is NOT a factor of production?

• Land

• Labor

• Capital

• Money

How do economists deal with scarcity?

• By eliminating competition

• By studying how to allocate resources efficiently

• By increasing the supply of resources

• By encouraging people to ignore scarcity

If a country faces scarcity, what does it mean about its resources?

• They are more than enough to meet the needs of the population

• They are in limited supply

• There is no need for competition

• There is no need for government regulation

What is the effect of scarcity on prices?

• Prices tend to decrease

• Prices tend to increase

• Prices stay the same

• Prices do not change