Scarcity & Opportunity Cost

Economics is all about...

• Money

• Choices

What is scarcity?

• Unlimited resources for limited needs and wants

• Limited resources for unlimited needs and hobbies

• Limited resources for unlimited needs and wants

Why is it impossible to give everyone on Earth what they need and want?

• Resources are limited-which mean scarcity exists.

• People who have more than others are greedy.

• It is possible because scarcity doesn't exist.

Economics really is the study of...

• how we deal with scarcity.

• how people make money.

• how the government spends tax money.

The trade-off you desire the most and give up is the OPPORTUNITY COST.

• False

• True

The opportunity cost of Anakin Skywaker becoming Darth Vader was...

• giving up the Jedi way.

• making a lot of money.

• getting a new high speed TIE Figher.

What is the opportunity cost for Ford to increase truck production from 10 million trucks to 30 million trucks?

• 15 million cars

• 10 million cars

• 20 million trucks

What is the opportunity cost of increasing military production from 150 million tons to 500 million tons?

• 100 million tons

• 200 million tons

• 300 million tons

Economics is the study of...

• Money

• Choices