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- 1. Multiple Choice
True/False: Human wants will always exceed available resources.
TRUE
FALSE
- 2. Multiple Choice
These are the things we desire to have.
Wants
Goals
Opportunity Costs
Needs
- 3. Multiple Choice
When "wants are greater than the resources available to satisfy them," it is called...
Scarcity
Needs
Opportunity Cost
None of these answers
- 4. Multiple Choice
Because of scarcity, people are forced to make _________ about how to use resources.
Choices
Opportunities
Houses
Desires
- 5. Multiple Choice
When you make a choice, you often have to give up other options. The value of what you gave up is called ________.
Opportunity Cost
Missed Opportunities
Misused Resources
Scarce Options
- 6. Multiple Choice
Which one of the following is an opportunity cost?
You stay out late and your parents ground you.
You run a red light and you get a ticket.
You choose to give up math to study for history.
In a softball game, you miss the ball and strike out.
- 7. Multiple Choice
In economics a decision is free if:
There is no money involved.
There are no products involved.
There is no exchange with another person.
A decision is never free. There is usually an alternative which results in an opportunity cost. Not free.
- 8. Multiple Choice
This Economic term refers to the things you use to create goods and services.
Resources
Materials
Wants
Scarcities
- 9. Multiple ChoiceA popular bakery has only a few ingredients left to make their products. They could bake muffins or cookies, but they can’t make both. The bakers decide to make cookies for their customers. What is the opportunity cost of their decision?muffinscookies
- 10. Multiple ChoiceOpportunity Cost is best defined asthe value of the next best alternative that is given up due to the choice you madeThe price you pay to purchase somethingThe benefit you gain by making a decisionThe amount of debt you take on by making a decision
- 11. Multiple ChoiceWhat is the production possibilities curve?a graph that shows how much an economy can produce between 2 goodshow much money something isthe opportunity one has to give up in order to gain something elseland, labor, capital, entrepreneurs
- 12. Multiple ChoiceIf a point lies on the curve this means the company is being efficient. If a point lies inside the curve, this tells the company what?They are being over efficientThey are not efficientIt is impossibleNone of the above
- 13. Multiple Choice
The opportunity cost of shifting production from "Point E" to "Point C" would be:
30 cans of cola
30 chocolate bars
70 cans of soda
20 chocolate bars
- 14. Multiple Choice
The concept of opportunity cost would no longer be relevant if
poverty in an economy no longer existed
the supply of all resources were unlimited
resources were allocated efficiently
real wages were flexible
all current incomes were invested in technological research
- 15. Multiple Choice
Which of the following concepts can be illustrated using the production possibilities curve?
I. Choice
II. Scarcity
III. Price level
IV. Opportunity cost
II only
I and III only
III and IV only
I, II, and IV only
II, III, and IV only
- 16. Multiple Choice
Which is a need?
Pop
Coffee
Water
Gatorade
- 17. Multiple Choice
Which is a want?
A place to live (shelter)
Oxygen
Car
Food
- 18. Multiple Choice
A need is something we can live without.
True
False
- 19. Multiple Choice
A want is something we would like to have but could easily live without it.
True
False
- 20. Multiple Choice
Is this type of shelter a need or want?
Need
Want
- 21. Multiple Choice
Which items should you pay for before buying any of your wants?
Rent
Utilities
Groceries
All of the above
- 22. Multiple Choice
Is a gym membership a need or a want?
Need
Want
- 23. Multiple Choice
Is exercise a need or want?
Need
Want
- 24. Multiple Choice
If an economy is producing at a point inside its production possibility curve, then
consumption is greater than production.
productive resources are not used to their full potential.
production of capital goods is inadequate.
it cannot benefit by specialisation and trade.
- 25. Multiple Choice
You are having a difficult time deciding if you should spend your money on tickets to see a new movie or going bowling with your friend. You decide to go to the movies, so bowling with your friend would be considered an opportunity cost.
True
False
- Answer choicesTagsAnswer choicesTags