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WorksheetsECONOMICS LEP 1: OPPORTUNITY COST AND SCARCITY
Total questions: 11
Worksheet time: 6mins
Which description is most correct about opportunity cost (OC)
impacts small businesses more often than large businesses
can be avoided if you have enough money
is inherent in all decisions/choices
can only be expressed in monetary terms
__________ is the fundamental, universal, and perpetual economic problem that no one is immune to.
price floors/price ceilings
Scarcity
Shortage
the study of microeconomics
The difference between scarcity and shortage is
scarcity is a natural & re-occurring condition; shortage is a man-made condition
shortage only happens with new products
shortage is a natural & re-occurring condition; scarcity is a man-made condition
shortage is the fundamental, universal economic problem
Opportunity cost (OC) can be described as
your number 1 tradeoff when making a choice
the number 2 alternative in your list of choices
is the next best choice and one you didn't choose
all of these answers are examples of opportunity cost (OC)
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?
the Air Pods
the shoes
the coat
the cash
Economics can be described as the study of
Money
Choices
graphing
price ceilings and price floors
The condition of scarcity can be described as one that
afflicts only poor people and nations
exists when our unlimited needs/wants exceed our limited resources
exists when our limited resources exceed our unlimited needs/wants
only applies to luxury items
Scarcity occurs because of the
Limited Resources
Unlimited Needs
Abundance of Resources
Equilibrium
True or False: Scarcity is a fundamental concept in economics because resources are limited while human wants are unlimited.
True
False
What is scarcity in economics?
The abundance of resources
The unlimited availability of goods
The limited availability of resources
The equilibrium of supply and demand
Match the following
Penalties or costs that make people not want to do something.
Negative Incentives
The study of how communities manage limited resources to meet all they want and need.
Economics
What you give up when you choose one thing over another.
Opportunity Cost
When you choose one thing, you give up something else.
Trade-offs
How much people are willing to pay for something based on supply and demand.
Market Prices
