Question

what does an economist mean when they say that resources are scarce?
a) resources are rare
b) resources are difficult to find
c) resources must be created
d) resources are limited

1. which of the following statements must be true if the use of resources involves an opportunity cost?

a) all companies will benefit from opportunity costs
b) not all needs can be satisfied
c) not all resources are scarce
d) the economy is operating below the production possibility curve

1. opportunity cost is

a) the inability to produce all the goods and services that people want because resources are limited.
b) the cost of the next best alternative forgone
c) the cost of labor, equipment and factories used in the production of goods and services
d) the possible combinations of goods and services that an economy can produce when all of its resources are being used to their full potential.

1. what is the opportunity cost of choosing to buy a new car instead of an old car?

b) cost of buying the new car
c) cost of buying the old car
d) additional cost of buying the new car than the old car
e) the savings in buying an old car than the new car

1. you have chosen to study for an economics test instead of a science test. which statement best describes the opportunity cost associated with that decision?

a) the grade you could have gotten on the science test
b) the time u spent studying for the economics test
c) the knowledge you gained from studying on the economics test
d) the things you would do if you did not study for the economics test

Explanation:

1. Scarcity in economics means resources are limited relative to unlimited wants. So the answer is that resources are limited.
2. Opportunity cost implies that not all needs can be satisfied due to limited resources. The correct statement is that not all needs will be satisfied.
3. Opportunity cost is the cost of the next - best alternative forgone.
4. When choosing a new car over an old car, the opportunity cost is the savings in buying an old car.
5. By choosing to study for an economics test instead of a science test, the opportunity cost is the grade you could have gotten on the science test.

Answer:

1. d. Resources are limited
2. b. Not all needs will be satisfied
3. b. The cost of the next best alternative forgone
4. e. The savings in buying an old car than the new car
5. a. The grade you could have gotten on the science test