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Scarcity and Choice quiz #4

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  • An opportunity cost can make decision making difficult because what?
    It requires evaluating what is given up with each choice.
  • Because of differences in opportunity costs, individuals and businesses do what?
    Specialize in activities where they have lower opportunity costs.
  • A _____ is a choice made from available alternatives.
    Decision.
  • Scarcity exists because of what?
    Limited resources and unlimited wants.
  • Opportunity cost is best defined as what?
    The value of the next best alternative forgone.
  • ________ is the study of how individuals and societies make choices under the condition of scarcity.
    Economics.
  • Scarcity exists when there are _______ resources available to satisfy all the competing uses.
    Insufficient.
  • A gap between unlimited wants and limited resources creates what?
    Scarcity.
  • Every economic decision has what?
    An opportunity cost.
  • The basic economic problem is what?
    Scarcity.
  • What is a limited resource?
    A resource that is not available in sufficient quantity to satisfy all wants.
  • How would a manufacturer benefit by using fewer scarce resources?
    By lowering costs and conserving resources for future use.
  • _______________ is the value of the best alternative given up when a choice is made.
    Opportunity cost.
  • Because of scarcity, every decision involves a what?
    Trade-off.
  • The opportunity cost of going to college is what?
    The income and experience you forgo by not working full-time.
  • What basic choices are faced by all societies?
    What to produce, how to produce, and for whom to produce.
  • Briefly describe the basic economic problem.
    Unlimited wants and limited resources create scarcity, requiring choices.
  • The opportunity cost of attending college is likely to be highest for a high school graduate who does what?
    Has a high-paying job offer.
  • Scarcity implies that:
    Choices must be made among competing uses for resources.
  • A society's ability to produce needed goods and services is permanently reduced if it does what?
    Depletes its scarce resources.
  • What is the basic economic problem?
    Scarcity.
  • Choosing between spending money on a new suit or a vacation is an example of what?
    A trade-off.
  • Fewer available resources and a lower standard of living are characteristics of what?
    Scarcity.
  • __________ is considered one of the four scarce economic resources.
    Land.
  • Limited quantity item refers to what?
    An item that is scarce and not available in unlimited amounts.
  • Is the act of limiting the types of goods and services produced called what?
    Specialization.
  • Opportunity cost means that something needs to be what?
    Given up.
  • Attending college is a case where the ________________ exceeds the monetary cost.
    Opportunity cost.
  • How does scarcity determine the economic value of an item?
    Scarcity increases value because limited supply makes people willing to pay more.
  • Overpopulation can lead to limited food, immunity, poverty, or competition?
    Limited food, poverty, and competition.
  • As a consequence of the problem of scarcity, what must individuals and societies do?
    Make choices and prioritize resource allocation.
  • When a resource, such as space in the factory, has no alternative use, its opportunity cost is what?
    Zero.
  • In order to compare and evaluate choices, there must be a set of what?
    Alternatives.
  • Without private property rights, people do what?
    Have less incentive to conserve and allocate resources efficiently.
  • Societies embrace various economic systems to deal with the fundamental problem of what?
    Scarcity.
  • What is a consequence of scarcity?
    The need to make choices and trade-offs.
  • Which basic economic question determines how a society will produce goods and services?
    How to produce.
  • What does the video call the things we miss out on as a result of the choices we make?
    Opportunity costs.
  • The phenomenon of scarcity stems from the fact that what?
    Resources are limited and wants are unlimited.
  • A(n) cost is the potential benefit lost by taking an action instead of an alternative action.
    Opportunity cost.