commerce

Which statement best explains why scarcity exists in economics?

• Both wants and resources are limited equally

• Both wants and resources are unlimited

• Resources are unlimited while wants are limited

• Wants are unlimited while resources are limited

What is opportunity cost?

• The value of the next best alternative forgone

• The total money spent on the chosen option

• The extra cost paid for scarce resources

• The benefit received from all alternatives

A student chooses to watch a movie instead of reading a book. What is the opportunity cost?

• The price of the movie ticket

• The enjoyment from reading the book

• The popcorn bought during the movie

• The time spent traveling to the cinema

Which pair correctly matches an economic unit with its primary aim?

• Household—maximize national output

• Government—maximize profit

• Business—maximize social welfare

• Individual—maximize satisfaction

Which constraint most directly limits a business (firm)?

• Unlimited land and entrepreneurial ideas

• Limited workers, machines, raw materials

• Limited national budget and resources

• Limited satisfaction and preferences

A bakery can bake cakes or bread. If it chooses to bake more bread, what is the opportunity cost?

• The wages paid to bakery workers

• The cost of flour used for bread

• Profit that could be earned from cakes

• The energy used to run the ovens

Why do individuals, firms, and governments need to make choices?

• Wants are limited compared to unlimited resources

• Technology eliminates all production limits

• Prices are always falling in all markets

• Resources are limited compared to unlimited wants

Which scenario best shows the government's constraint when planning public spending?

• Printing money means unlimited real resources

• Opening shops means higher private profits

• Hiring workers means more raw materials available

• Choosing hospitals means fewer funds for education

Which statement best describes a service?

• It is stored for future resale

• It is intangible and cannot be owned

• It is produced without any resources

• It is physical and can be touched

Which example is a consumer good rather than a capital good?

• A delivery company’s van

• A factory’s welding robot

• A family’s carton of milk

• A chef’s commercial oven