AP M | Opportunity Cost & Scarcity

A famous saying is, “There is no such thing as a free lunch.” What does this statement mean?:

a.) Everything has a cost.

b.) Never accept a free lunch.

c.) You must always pay for lunch.

a.) Everything has a cost.

What is the definition of opportunity cost?:

a.) the next best alternative that you give up

b.) all of the choices you could have made but didn’t

c.) the chance that you will lose your money

d.) the money you spend to buy something

a.) the next best alternative that you give up

Who determines your opportunity cost?:

a.) you

b.) your friends

c.) your parents

d.) your teachers

a.) you

What is the non-monetary opportunity cost of attending college?:

a.) less time to spend with friends

b.) getting a job

c.) money spent for tuition

d.) saving for a car

a.) less time to spend with friends

You pick…

1st, Candy

2nd, Magazine

3rd, Soda

What is the opportunity cost of buying the candy bar?:

a.) both the magazine & the soda

b.) your cash

c.) soda

d.) magazine

d.) magazine

We all face scarcity of time because there are not enough hours in a day:

a.) true

b.) false

a.) true

One hour spent on one activity takes way an hour of another activity. This trade-off is called:

a.) scarcity

b.) shortage

c.) sacrifice

d.) opportunity cost

d.) opportunity cost

What makes a resource a good scarce?:

a.) must be limited in quantity

b.) must be desirable

c.) must have more than one use

d.) all of the above

d.) all of the above

Which one of these is not a scarce item?:

a.) doctors

b.) gold

c.) clean air

d.) garbage

d.) garbage

Which of these statements is correct?:

a.) Scarcity requires people to make choices.

b.) Wealthy people do not experience scarcity.

c.) Scarcity only exists in lesser developed countries.

d.) Expensive cars are not considered scarce.

a.) Scarcity requires people to make choices.

What is scarcity?:

a.) the act of being afraid

b.) the excess of a product that hasn’t been sold

c.) the inability to satisfy the unlimited wants and needs of people

d.) the number of goods and services consumers want

c.) the inability to satisfy the unlimited wants and needs of people

When a limited amount of resources are available, consumers must:

a.) demand more

b.) choose an alternative

c.) wait

d.) fight for them

b.) choose an alternative

All are alternatives to scarcity except:

a.) wish

b.) ration

c.) trade

d.) substitute

a.) wish

When scarcity exists, the choices societies make for the use of that scarce resource is called:

a.) bartering

b.) distribution

c.) surplus

d.) shortage

b.) distribution

Since there are not enough flu shots available for everyone, the government has decided to give the vaccines in a certain number. This is an example of:

a.) rationing

b.) selling

c.) equalizing

d.) distribution

d.) distribution

Scarcity refers to a basic:

a.) political problem

b.) economic problem

c.) social problem

b.) economic problem

Zhu Zhu Pets are a popular gift for the holiday season. Adults will scramble to buy these for children. But, there will not be enough available for everyone. This is an example of:

a.) scarcity

b.) profit

c.) loss

a.) scarcity

The manufacturer of Zhu Zhu Pets sends these toys to selected toy stores. This is an example of:

a.) production

b.) substitutions

c.) rationing

d.) distribution

d.) distribution

When you don’t receive the Zhu Zhu Pets you wanted, but instead receive a Webkinz, this method of dealing with scarcity is called:

a.) distribution

b.) allocation

c.) substitution

d.) evaluation

c.) substitution

Since there are not enough flu shots available for everyone, the government has decided to give the vaccines in a certain order. This is an example of:

a.) rationing

b.) production

c.) intervention

d.) allowance

a.) rationing