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Scarcity and Choice

Total questions: 15

Worksheet time: 23mins

Name
Class
Date
1.
The most desirable alternative given up as the result of a decision is called _____________.
a)
Choice
b)
Opportunity Cost
2.
Economics is the study of how people seek to satisfy their needs and wants by making choices.
a)
True
b)
False
3.
________means that we have limited quantities of resources to meet our unlimited wants.
a)
Shortage
b)
Scarcity
c)
Recession
d)
Simplify
4.
Sinéad is trying to decide between a phone for 300 and an iPod 350. She decides to buy the phone. What is her opportunity cost?
a)
350
b)
50
c)
300
d)
100
5.
The financial cost of something is...
a)
when we decide to use our money for one particular purpose, we lose the chance (opportunity) to do something else with that money
b)
the price of the goods we choose to buy
c)
the factors/inputs used to produce goods or services
6.

Which of the following can be scarce? Select all that apply.

a)

money

b)

food

c)

water

d)

trees

7.

True/False: Human wants will always exceed available resources.

a)

TRUE

b)

FALSE

8.

Because of scarcity, people are forced to make _________ about how to use resources.

a)

Choices

b)

Opportunities

c)

Houses

d)

Desires

9.

Which one of the following is an opportunity cost?

a)

You stay out late and your parents ground you.

b)

You run a red light and you get a ticket.

c)

You choose to give up math to study for history.

d)

In a softball game, you miss the ball and strike out.

10.

In economics a decision is free if:

a)

There is no money involved.

b)

There are no products involved.

c)

There is no exchange with another person.

d)

A decision is never free. There is usually an alternative which results in an opportunity cost. Not free.

11.

The concept of opportunity cost would no longer be relevant if

a)

poverty in an economy no longer existed

b)

the supply of all resources were unlimited

c)

resources were allocated efficiently

d)

real wages were flexible

e)

all current incomes were invested in technological research

12.
Which is NOT a Factor of Production?
a)
Land
b)
Capital
c)
Entrepreneurs
d)
Labor
13.

Capital refers to...

a)

The "gifts of nature" or natural resources not created by human effort.

b)

people with all their efforts and abilities

c)

the tools, equipment, and factories used in production of goods and services

d)

individuals who start a new business or bring a product to market.

14.

Entrepreneurs are...

a)

people with all their efforts and abilities

b)

individuals who start a new business or bring a product to market.

c)

The "gifts of nature" or natural resources not created by human effort.

d)

the tools, equipment, and factories used in production of goods and services

15.

Physical capital refers to the human-made objects used to create other goods and services.

a)

True

b)

False