1) Scarcity exists because
A) human wants exceed the resources available to satisfy them.
B) some individuals have low income.
C) the costs of production are high.
D) some people make bad economic decisions.
E) people take too much leisure time.
2) Scarcity
A) is the inability to satisfy all our wants.
B) leads to higher prices.
C) applies only to people living in poverty.
D) is not something that affects very rich people.
E) used to exist everywhere but has been eliminated in advanced economies.
3) Scarcity requires that we
A) produce efficiently.
B) learn to limit our wants.
C) have the most rapid economic growth possible.
D) have unlimited resources.
E) make choices about what goods and services to produce.
4) Scarcity means that
A) what we can produce with our resources is greater than our material wants.
B) resources are unlimited.
C) wants are greater than what we can produce with out resources.
D) governments must make up for shortages in resources.
E) choices made in self-interest cannot be the same as those made in the social interest.
5) Because human wants are insatiable and unlimited while available resources are limited, people are said to face the problem of
A) scarcity.
B) why to produce.
C) macroeconomics.
D) microeconomics.
E) social interest versus self-interest.
6) Which of the following statements best describes the study of economics? Economics studies how
A) to organize production so that scarcity does not occur.
B) firms make profits.
C) we make choices in the face of scarcity.
D) to create incentives so that scarcity does not exist.
E) businesses reach decisions.
7) Scarcity forces people to
A) choose among available alternatives.
B) cheat and steal.
C) be unwilling to help others.
D) live at a low standard of living.
E) consume as much as they can as quickly as they can.
8) Scarcity means we must
A) consume less.
B) produce less.
C) make choices.
D) earn more.
E) work more.
9) What is the reason that all economic issues and problems occur?
A) All nations use some form of money to buy and sell goods and services.
B) Humans are always wasteful and inefficient in production and consumption.
C) Powerful governments are able to control production and consumption.
D) Human wants exceed the resources available to satisfy them.
E) People seek only their own self-interest.
10) The study of economics is best described as a study of
A) the factors that influence the stock and bond markets.
B) capitalism.
C) the choices made in producing goods and services.
D) coping with scarcity, and choices made as a result of scarcity in a society.
E) how people earn a living.
The Correct Answer and Explanation is :
Here are the correct answers along with explanations:
1) A) human wants exceed the resources available to satisfy them.
Explanation: Scarcity arises because human desires are virtually limitless, but the resources available to meet those desires (such as land, labor, and capital) are limited. This imbalance forces individuals, businesses, and governments to make choices on how to allocate these resources efficiently.
2) A) is the inability to satisfy all our wants.
Explanation: Scarcity refers to the condition where limited resources prevent us from fulfilling all our desires and needs. It is not just a problem for the poor but for everyone, as no one has enough resources to meet every want or need.
3) E) make choices about what goods and services to produce.
Explanation: Scarcity forces societies to decide what to produce, how to produce, and for whom to produce. Since resources are limited, individuals and governments must prioritize which goods and services to create based on available resources.
4) C) wants are greater than what we can produce with our resources.
Explanation: Scarcity means that the resources available (such as raw materials, labor, and capital) are insufficient to fulfill all the wants and needs of society. This leads to trade-offs and the need for prioritization of which goods and services to produce.
5) A) scarcity.
Explanation: The fundamental economic problem of scarcity arises from the fact that humans have unlimited wants but limited resources. This mismatch creates the need for decision-making in how resources are allocated to satisfy needs and desires.
6) C) we make choices in the face of scarcity.
Explanation: Economics is the study of how people make decisions in the context of limited resources and unlimited wants. These choices influence production, distribution, and consumption in society.
7) A) choose among available alternatives.
Explanation: Because resources are limited, people must choose how to use them most effectively. Scarcity forces individuals and societies to consider alternatives and make decisions based on trade-offs.
8) C) make choices.
Explanation: Scarcity means there are not enough resources to fulfill every desire, so people and governments must make choices about which needs to prioritize.
9) D) Human wants exceed the resources available to satisfy them.
Explanation: The root cause of all economic issues is scarcity, which exists because there are not enough resources to satisfy all human desires. This imbalance forces societies to make choices about how to allocate resources.
10) D) coping with scarcity, and choices made as a result of scarcity in a society.
Explanation: Economics is fundamentally about studying how societies cope with scarcity. The choices made in response to scarcity influence the production, distribution, and consumption of goods and services in an economy.
Scarcity is a central concept in economics because it influences all economic decisions, from the smallest individual choices to the largest societal decisions. It requires individuals and governments to make choices, prioritize needs, and allocate resources in ways that attempt to maximize the benefits to society.