Economics: Needs, Wants & Scarcity

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Scarcity and choices basics

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Clara Bee

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Economics: Needs, Wants & Scarcity


Economics: Needs, Wants & ScarcityVersión en línea Scarcity and choices basics por Clara Bee 1 What does scarcity mean in economics? a Wants that can be bought with ease b Limited resources relative to unlimited wants c Abundant resources for all needs d An excess of supply over demand 2 Which is an example of a need rather than a want? a Smartphone with camera b Designer jeans c A nutritious meal d Vacation to an island 3 What is opportunity cost? a A measure of inflation b The money gained from selling resources c The total price of all alternatives d The value of the next best alternative that is forgone 4 Which statement describes the production possibilities frontier (PPF)? a It indicates the current price of goods b It shows the maximum combinations of two goods that can be produced with available resources c It shows only the most expensive production choices d It measures consumer happiness 5 Scarcity forces individuals and firms to make: a Trade-offs b No decisions c Unlimited production d Constant prices 6 An incentive typically motivates people to: a Decrease production b Make choices that maximize benefits c Avoid risks at all times d Ignore costs 7 If resources become scarcer, what is a common economic response? a Demand stays the same b Prices fall immediately c Supply becomes unlimited d Prices tend to rise to ration demand 8 Which of the following is a scarce resource? a Sunlight b Air in a well-ventilated room c Open space in a park d Clean water in a drought 9 Which factor can reduce scarcity over time? a Technological progress increasing efficiency b Limiting trade to preserve resources c Reducing total population d Increasing government debt 10 Why do prices rise during scarcity? a Because supply always doubles b Because all consumers have the same income c Because demand often exceeds limited supply d Because costs of production vanish

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Economics: Needs, Wants & Scarcity

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Economics: Needs, Wants & ScarcityVersión en línea

por Clara Bee

What does scarcity mean in economics?

Which is an example of a need rather than a want?

What is opportunity cost?

Which statement describes the production possibilities frontier (PPF)?

Scarcity forces individuals and firms to make:

An incentive typically motivates people to:

If resources become scarcer, what is a common economic response?

Which of the following is a scarce resource?

Which factor can reduce scarcity over time?

Why do prices rise during scarcity?