Scarcity & FOP Quiz 2025

What is scarcity?

• The lack of a single good in the market

• A temporary shortage of goods and services

• The condition where unlimited wants exceed limited resources

• A situation cause by poor resource management

Which of the following is NOT a strategy for allocating scarce resources?

• Price

• Lottery

• Unlimited supply

• Majority rule

Which is an example of a natural resource (land)?

• A factory used for manufacturing goods

• A river used to generate hydroelectric power

• A truck delivering products

• A person working as a teacher

What is the opportunity cost of attending college instead of working full-time immediately after high school?

• The wages you could have earned by working full-time

• The cost of tuition and books

• The time spent in class instead of leisure activities

• The value of your education

How do individuals, businesses, and governments make rational decisions?

• By avoiding any risks

• By responding only to positive incentives

• By choosing the action with the highest cost

• By comparing marginal benefits and marginal costs

What is an example of a positive incentive for businesses?

• A government subsidy for producing renewable energy

• A tax increase on profits

• A regulation limiting business operations

• A fine for failing to meet production quotas

Which of the following best illustrates marginal benefit exceeding marginal cost?

• A company lays off workers to reduce expenses

• A consumer avoids purchasing an expensive product on sale.

• A student studies for an extra hour because it improves their test score

• A city cancels a public project due to high expenses.

What type of productive resource does an entrepreneur represent?

• Natural resource

• Entrepreneurship

• Human capital

• Physical Capital

What is NOT a characteristic of a good Entrepreneur?

• Self-Awareness

• Long-Term Focus

• Risk Tolerance

• Disinterest

Which scenario best demonstrates the concept of opportunity cost?

• A business uses machinery to produce goods more efficiently.

• A government allocates funds to healthcare instead of infrastructure.

• A student applies for a scholarship to reduce education expenses.

• A family invests in both a home and a car.