Scarcity and Choice quiz #2 Flashcards
Scarcity and Choice quiz #2
You can tap to flip the card.
Control buttons has been changed to "navigation" mode.
1/40Skip to main content
Other things held constant, what does scarcity imply? Scarcity implies choices must be made among competing uses. What is the opportunity cost of product B? It is the value of the next best alternative forgone to produce product B. Which of the following is true about scarcity? Scarcity is a universal condition affecting all societies. Which of the following is not scarce according to the economic definition? Air (in most situations). What does it mean to say that a resource is scarce? It means the resource is limited and cannot satisfy all wants. Which of the following statements about scarcity is true? Scarcity requires people to make choices. Which of the following describes scarcity? Scarcity is the condition of having limited resources to meet unlimited wants. Which of the following is not an example of scarcity? Unlimited supply of sunlight in a desert. What is the difference between a shortage and a scarcity? Shortage is temporary; scarcity is a permanent condition. Which of the following best describes scarcity? Scarcity is the gap between limited resources and unlimited wants. Which of the following statements is not true about opportunity cost? Opportunity cost only applies to monetary decisions. What factors into the opportunity cost for a decision? The value of the next best alternative forgone. What will we never do in a world of scarcity? We will never satisfy all wants. What is Paulie's opportunity cost of producing a cup of ice cream? It is the value of the next best alternative Paulie gives up to produce the ice cream. Other things equal, what does scarcity require? Scarcity requires making choices and trade-offs. Which statement explains the tradeoff between today's consumption and future consumption? Spending money today reduces what you can save and consume in the future. Which demonstrates a scenario with no opportunity cost? A choice where no alternatives are given up (rare in economics). What is the relationship between decisions and trade-offs? Every decision involves a trade-off because choosing one option means giving up another. Which of these best describes an opportunity cost? A win-win, a loss, a chance, a trade-off A trade-off. What is the opportunity cost of an investment? The potential returns from the next best alternative investment. Which economic model reveals the variety of options for what to do with your scarce time? The production possibilities frontier (PPF). Which of the following helps to avoid wasting resources on goals that cannot be accomplished? Evaluating opportunity costs and trade-offs. Why is it important to evaluate trade-offs and opportunity costs when making choices? It helps ensure resources are used efficiently and the best possible outcome is achieved. Why are resources for consumer consumption limited? Resources are limited due to scarcity. Which statements accurately show the concept of scarcity? Check all that apply. Resources are limited; choices must be made; not all wants can be satisfied. Which is true about scarcity? Scarcity affects everyone and requires choices. Which statement about scarcity is true? Scarcity means not enough resources to satisfy all wants. Which one of these represents an opportunity cost? Missing a concert to study for an exam. Which of the following is an example of scarcity? Limited supply of clean drinking water. What is the opportunity cost of not going to college? The education and potential higher earnings you forgo. Which of the following statements is true about scarcity? Scarcity is a permanent condition in economics. What is one of the risks involved in complete specialization? Vulnerability to changes in demand or resource availability. Which of these best describes an opportunity cost? A win-win, a loss, a chance, a trade-off A trade-off. How does opportunity cost affect people's wants and needs? It forces people to prioritize and make choices among competing wants and needs. Which is equivalent to “4 pencils for every 2 students”? 2 pencils per student. Which of the following is not scarce according to the economic definition? Sunlight (in most cases). Which of the following best describes scarcity? Scarcity is the condition of limited resources and unlimited wants. What is scarcity? Scarcity is the condition of having unlimited wants but limited resources. Why do you need to use decision making skills if you have limited means? To allocate resources efficiently and maximize satisfaction. Why do all societies face the problem of scarcity? Because resources are limited and wants are unlimited.
02:39
