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ECONOMICS LEP 1: OPPORTUNITY COST AND SCARCITY

Total questions: 11

Worksheet time: 6mins

Name
Class
Date
1.

Which description is most correct about opportunity cost (OC)

a)

impacts small businesses more often than large businesses

b)

can be avoided if you have enough money

c)

is inherent in all decisions/choices

d)

can only be expressed in monetary terms

2.

__________ is the fundamental, universal, and perpetual economic problem that no one is immune to.

a)

price floors/price ceilings

b)

Scarcity

c)

Shortage

d)

the study of microeconomics

3.

The difference between scarcity and shortage is

a)

scarcity is a natural & re-occurring condition; shortage is a man-made condition

b)

shortage only happens with new products

c)

shortage is a natural & re-occurring condition; scarcity is a man-made condition

d)

shortage is the fundamental, universal economic problem

4.

Opportunity cost (OC) can be described as

a)

your number 1 tradeoff when making a choice

b)

the number 2 alternative in your list of choices

c)

is the next best choice and one you didn't choose

d)

all of these answers are examples of opportunity cost (OC)

5.

George earns a $250 bonus at his job for increasing his output by an additional 50% two weeks in a row. He makes a list of what he wants to buy with his bonus: 1: the latest model of Adidas athletic shoes; 2: Air Pods; 3: a new coat. He buys Adidas. What is his opportunity cost?

a)

the Air Pods

b)

the shoes

c)

the coat

d)

the cash

6.

Economics can be described as the study of

a)

Money

b)

Choices

c)

graphing

d)

price ceilings and price floors

7.

The condition of scarcity can be described as one that

a)

afflicts only poor people and nations

b)

exists when our unlimited needs/wants exceed our limited resources

c)

exists when our limited resources exceed our unlimited needs/wants

d)

only applies to luxury items

8.

Scarcity occurs because of the

a)

Limited Resources

b)

Unlimited Needs

c)

Abundance of Resources

d)

Equilibrium

9.

True or False: Scarcity is a fundamental concept in economics because resources are limited while human wants are unlimited.

a)

True

b)

False

10.

What is scarcity in economics?

a)

The abundance of resources

b)

The unlimited availability of goods

c)

The limited availability of resources

d)

The equilibrium of supply and demand

11.

Match the following

a)

Penalties or costs that make people not want to do something.

1.

Negative Incentives

b)

The study of how communities manage limited resources to meet all they want and need.

2.

Economics

c)

What you give up when you choose one thing over another.

3.

Opportunity Cost

d)

When you choose one thing, you give up something else.

4.

Trade-offs

e)

How much people are willing to pay for something based on supply and demand.

5.

Market Prices