Econ Unit 1 FA Dummy 1, 2025,26

Which term refers to something that has limited availability and many potential uses in a society?

• Scarce resource

• Elastic good

• Inferior good

• Capital input

A scarce resource is:

• A resource whose availability exceeds all possible uses

• A factor of production available in large supply

• Not available in sufficient quantities to meet all uses

• A product offered without cost to consumers

Which of the following best describes a scarce resource?

• A product that only some people can afford

• A good that can be substituted easily in production

• A resource with more uses than supply

• A service provided through taxation

Which concept in economics explains the need to make choices because resources cannot fulfill every societal desire?

• Equilibrium pricing

• Marginal utility

• Scarce resource

• Price elasticity

A study finds that during a drought, water use must be prioritized for agriculture over lawn maintenance and recreation. This is an example of managing a:

• Renewable resource

• Private good

• Scarce resource

• Substitute good

A farmer must choose between using land for corn or wheat. The land can’t grow both simultaneously due to soil nutrient limitations. This trade-off highlights:

• Capital depreciation

• Comparative advantage

• Scarce resource

• Total revenue maximization

A recent report showed that during peak energy usage, rolling blackouts occurred because the power supply could not meet demand. This is an example of:

• An increase in opportunity cost

• A breakdown in fiscal policy

• A response to a scarce resource

• A result of decreased productivity

A student council has $1000 and wants to fund new furniture, club grants, and a student dance. They cannot afford all three. This situation illustrates:

• Government subsidy

• Market equilibrium

• Scarce resource

• Price discrimination

A government faces competing needs for limited medical personnel during a public health crisis. Some professionals are assigned to hospitals, while others are sent to rural clinics. This scenario best reflects which economic concept?

• Market demand

• Scarce resource

• Opportunity cost

• Incentive alignment

An island community has limited building space and must choose between constructing housing or preserving forest area. This decision process demonstrates the implications of:

• Supply and demand

• Scarce resource

• Price ceilings

• Positive externalities