What is the difference between a shortage and scarcity?

A shortage is often short-term; scarcity always exists.

Mary states that consumers have to buy whatever producers make. This violates the idea that

people make choices and engage in voluntary exchange

According to economists, the real cost of anything is

the value of the next best alternative.

Bob wants to play football and get a job, but doesn't have time for both. He decides to work.

His opportunity cost is playing football

Economics predicts that a student will hit the snooze button on their alarm clock until

sleeping costs more than the benefits of getting up.

Which of the following is typically true?

People's choices have consequence for the future

The crucial problem of economics is

using scarce resources to satisfy unlimited wants

Making a choice means

Deciding between many possibilities

People throughout the world

purposefully - considering costs and benefits

Some kids choose to drop out of high school. What is the opportunity cost of dropping out?

give up higher income earned in the job market

Of the following, economics is best defined as the study of

people using scarce resources to satisfy unlimited wants

The phrase "There is no such thing as a free lunch" means

resources used for 1 purpose could be used for another

Which of the following explains the reason for scarcity?

people's wants exceed the resources available

is the next best alternative given up when you make a choice

Which statement explains the reason for scarcity?

People’s wants exceed the resources available.

Fri you download music with your last $30. You get paid on Mon. What's your opportunity cost?

dinner and a movie with your friends on Saturday.

People usually trade with each other when they

feel they will be better off from making a trade

Which would NOT be considered capital by an economist?

a share of corporate stock issued by General Motors

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Economics Unit 1: Scarcity and Costs & Benefits

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Questions 30

Answers

1
What is the difference between a shortage and scarcity?
A shortage is often short-term; scarcity always exists.
Rising prices cause shortages; falling prices show scarcity.
A shortage is lacking everything; scarcity is lacking one.
There is no real difference between a shortage and scarcity.
2
You prefer reading to watching TV & watching TV to listening to music. The opp cost of reading
the price of the book
is watching TV and listening to music
listening to music
watching TV
3
Mary states that consumers have to buy whatever producers make. This violates the idea that
the best things in life are free
consequences of choices lie in the future
rules set the economic environment
people make choices and engage in voluntary exchange
4
According to economists, the real cost of anything is
the amount of money you pay for it.
the amount of raw material used in making it.
the number of workers required to produce it.
the value of the next best alternative.
5
Bob wants to play football and get a job, but doesn't have time for both. He decides to work.
His opportunity cost is hanging out with friends.
His opportunity cost is working
His opportunity cost is playing football
There is no opportunity cost because he spends no money.
6
Economics predicts that a student will hit the snooze button on their alarm clock until
sleeping costs more than the benefits of getting up.
getting up costs more than the benefits of sleeping.
they are no longer tired.
their parents bring them their morning latte from Starbucks.
7
Which of the following is typically true?
People's choices have consequence for the future
People do not respond to incentives
Correct choices have no costs
Voluntary trade causes winners and losers
8
Which is considered to be an economic resource by economists?
Wages
Money
Savings
Labor
9
The crucial problem of economics is
providing social goods and services
establishing a fair tax system.
developing prices that reflect scarcity
using scarce resources to satisfy unlimited wants
10
Making a choice means
not thinking of future circumstances
Deciding between many possibilities
being able to get everything
considering your daily horoscope
11
People throughout the world
purposefully - considering costs and benefits
generously - thinking of the needs of others
randomly - leaving the outcome up to chance
impulsively - choosing quickly without much thought
12
Some kids choose to drop out of high school. What is the opportunity cost of dropping out?
payments made to companies hiring drop-outs
give up higher income earned in the job market
lower interest rates one is charged for credit
higher taxes one pays to drop out
13
Of the following, economics is best defined as the study of
ypes of business organizations
people using scarce resources to satisfy unlimited wants
the production of goods
how governments allocate scarce resources
14
Which resource describes our education, talents, and skills?
Land
Physical Capital
Human Capital
Labor
15
Which resource describes anything from nature, including air, water, oil, and timber?
Labor
Land
Physical Capital
Human Capital
16
The phrase "There is no such thing as a free lunch" means
individuals, not society, suffer from a lack of resources
scarce resources are rare and therefore expensive
free lunches are a scam but cannot be avoided
resources used for 1 purpose could be used for another
17
A company or person who chooses less of one thing to have more of another is
balancing demand and supply.
eliminating scarcity.
making a trade-off.
engaging in a voluntary exchange.
18
Which resource describes the human energy put into creating a good or service?
Land
Human Capital
Labor
Physical Capital
19
Which of the following explains the reason for scarcity?
govt's buy too many goods & services, leaving little for us
population always grows faster than production
people's wants exceed the resources available
Problems arise in getting products to consumers
20
What is more important to economists?
Monetary Cost
Opportunity Cost
21
Which of the factors of production are used in producing and selling a simple wooden yo-yo?
capital and land
capital and labor
labor and entrepreneurship
land, labor and capital
22
Opportunity cost
does not relate to the use of one's time in any way
is another way to say there was a change in price
is defined as the amount of money spent ot buy something
is the next best alternative given up when you make a choice
23
Iron ore, timber, tuna fish, and crude oil are examples of
labor
physical capital
human capital
land
24
Which resource describes equipment, tools, and machinery used to produce goods and services?
Labor
Land
Physical Capital
Human Capital
25
Which statement explains the reason for scarcity?
Governments buy too many goods leaving little for consumers.
Population always grows faster than production.
Problems arise in getting products to consumers.
People’s wants exceed the resources available.
26
Fri you download music with your last $30. You get paid on Mon. What's your opportunity cost?
dinner and a movie with your friends on Saturday.
the cost to produce the music.
$30
knowing you have the music before your friends
27
People usually trade with each other when they
don't know what to expect from making a trade
think they will be worse off after making a trade
feel they will be better off from making a trade
predict the costs of trading will be greater than benefits
28
In economics, Factors of Production are another name for
Production Possibilities
Goods and Services
Circular Flow
Economic Resources
29
The major problem facing all economic systems is related to
their production –possibilities frontier.
the factors of production.
technology.
scarce resources.
30
Which would NOT be considered capital by an economist?
a crane used by a building contractor
a share of corporate stock issued by General Motors
a college degree
a razor used by a barber

Economics Unit 1: Scarcity and Costs & Benefits Flashcards | StudBud