Scarcity DOL

What is scarcity in economics?

• A surplus of resources

• The unlimited availability of resources

• The limited availability of resources relative to human wants and needs

• A situation where everyone's needs are fully satisfied

Opportunity cost refers to:

• The total cost of producing a good or service

• The benefit of choosing the most expensive option

• The value of the next best alternative that must be sacrificed when a choice is made

• The cost of resources that are abundant

In a market-oriented economy, what primarily determines what goods and services are produced?

• Government regulations

• Consumer preferences and demand

• Producer preferences and supply

• Random chance

Which of the following is NOT one of the factors of production?

• Land

• Money

• Labor

• Capital

What role do entrepreneurs play in the economy?

• They consume resources without contributing to production

• They determine government policies

• They innovate, take risks, and organize resources to create and manage businesses

• They control the supply of money in an economy