Scarcity and Opportunity Cost Terms Review

Economics is defined as...

• The study of money and finance

• The study of how society uses its limited resources

• The study of the Wu-Tang song "Cash Rules Everything Around Me"

• The study of how financial institutions lend and borrow money

A trade-off is...

• when you choose one thing which can only be gotten by giving up something else

• when you decide to give up all your possessions and become a monk

• when you are able to get everything you want, all the time

• when you aren't able to make a decision, so you give up

I had to choose between ordering pizza or Chinese, since I didn't have enough money for both. I chose pizza. What was the opportunity cost of my decision?

• The pizza I ordered

• The Chinese food I didn't order

• Both the pizza and Chinese food

• None of the above

The word economists use to describe the problem of limited resources and people's unlimited wants and needs is...

• trade-off

• opportunity cost

• scarcity

• values

Which of these are limited or scarce resources?

• Toilet paper

• Hand sanitizer

• COVID-19 tests

• All of the above

Charity is defined as...

• Voluntary aid, usually in the form of money, given to those in need

• Money used by a government organization to repair an area affected by natural disaster

• Public funds used for common services (firefighters, roads, etc.)

Why do people donate to charity?

• To work towards a goal in line with their values

• To possibly pay fewer taxes

• Both A and B

• None of the above

Which of these is something a philanthropist would most likely do?

• Steal money from their company to buy a new yacht

• Use their wealth to help build libraries in under-funded neighborhoods

• Use their wealth to bribe members of Congress to get a bill passed

• Save all their money for themselves

What is the best example of a volunteer activity?

• Someone who has to pick up trash on the side of the highway as a part of court-ordered community service

• Someone who spends their free time serving food at a soup kitchen without pay

• Someone who works at a retail job

• Someone who mows lawns for extra cash

How comfortable are you with the terms we've studied so far (values, wants, needs, scarcity, opportunity costs, trade-offs)?

• Very comfortable

• Pretty comfortable

• Not very comfortable

• Not at all comfortable