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Scarcity and Opportunity Cost

Total questions: 16

Worksheet time: 14mins

Name
Class
Date
1.

All of the following are examples of opportunity cost EXCEPT:

a)

tuition fees paid to a university

b)

the income which could have been earned by a college student had he or she worked full time instead of going to college

c)

the building which could have been built with the construction materials and labor used to build a new university library

d)

the leisure time sacrificed to study for an exam

2.

_____________ means that we do not have enough of a good or service to meet all of the demand.

a)

opportunity cost

b)

scarcity

c)

wants

d)

resources

3.

Scarcity is only a problem for poor people.

a)

True

b)

False

4.

Why is scarcity a problem for everyone?

4 lines
5.

Emily is deciding what to do after high school. Right now her two options are: go to college or enter the workforce/get a job. She can only choose one. Emily decides to get a job. Which of the following is the opportunity cost of her decision?

a)

money

b)

job

c)

time

d)

college

6.

Pretend you were living in New Orleans, Louisiana, while Hurricane Katrina hit. Name at least 3 items that would have been scarce after the hurricane came through.

4 lines
7.

Which of the following seems to represent the law of diminishing marginal utility? Check all that apply.

a)

Ken enjoys his 10th can of Pepsi more than his 1st.

b)

Morris the Cat likes catnip more and more the longer he plays with it.

c)

Howard has a decreasing desire for more wealth the richer he becomes.

d)

The more pieces of gum Sam puts in his mouth, the less satisfaction he gets from chewing it.

8.

Which type of resource does WATER FROM A STREAM FOR IRRIGATION represent?

a)

human resource

b)

capital resource

c)

natural resource

9.

What type of resource does a knife cutting meat in a butcher shop represent?

a)

human resource

b)

natural resource

c)

capital resource

10.

Which type of resource does a painter painting your house represent?

a)

capital resource

b)

human resource

c)

natural resource

11.

Which type of resource does a guitar for a lead singer in a band represent?

a)

capital resource

b)

human resource

c)

natural resource

12.

Which type of resource does a chef making food for your restaurant represent?

a)

capital resource

b)

human resource

c)

natural resource

13.

Which type of resource does a coal miner represent?

a)

natural resource

b)

human resource

c)

capital resource

14.

Which type of resource does coal to power a train represent?

a)

human resource

b)

capital resource

c)

natural resource

15.

Which type of resource does a hammer for building a house represent?

a)

natural resource

b)

capital resource

c)

human resource

16.

Which of the following are things that an entrepreneur might do? (Select all that apply)

a)

take risks

b)

bring capital and human resources together

c)

work at a cash register at McDonald's

d)

start a business

e)

develop new products for a company