Scarcity Review Lesson One

There are vast reserves of oil in Saudi Arabia, but it is still considered scarce. Why is this true?

• It has many uses.

• It is not desirable.

• It is inexpensive to purchase.

• It is expensive to purchase.

Scarcity exists when ____________ exceed the capacity of available __________________.

• supplies, resources

• investments, capital

• wants, resources

• inventions, materials

What two requirements must an item meet to be considered scarce?

• limited in quantity and desirable

• expensive and rare

• a natural resource and plentiful

• a man made resource and cheap

Why is radioactive waste not scarce?

• It is not desirable.

• It is expensive.

• It has more than one use.

• It is not limited in quantity.

Wants are necessary for survival while needs are things we desire.

• True

• False

This occurs when producers cannot or will not offer goods or services at the current prices

• scarcity

• shortage

• deficit

• surplus

Which of these is NOT an example of a need?

• Water
• Food
• watch
• Shelter

Economics is the study of how people seek to satisfy their needs and wants by making choices.

• True
• False

House: Goods or Service?

• Goods
• Service

A person who provides a good or service

• producer

• need

• want

• consumer