Economic Lowdown Quiz

What is the concept that describes the condition in which our wants are greater than the resources available to satisfy those wants?

• Abundance

• Scarcity

• Plenty

• Sufficiency

What does scarcity prohibit you from doing with your allowance?

• Not using it at all

• Spending and saving the same dollar

• Spending all of it

• Saving all of it

What is the opportunity cost of spending tax revenues on healthcare?

• The lost opportunity to spend that same money on housing

• The lost opportunity to spend that same money on entertainment

• The lost opportunity to spend that same money on transportation

• The lost opportunity to spend that same money on education

According to the text, what is the opportunity cost of going to school?

• Watching TV and going to the mall

• Watching TV and playing video games

• Going to the mall and sleeping in

• Watching TV and sleeping in

What does Nobel Laureate Milton Friedman say about the concept of a free lunch?

• It is a common occurrence

• It is a reality

• It is a myth

• It is always available

What does the concept of choice mean in the context of limited resources and unlimited wants?

• We don't have to make any choices

• We can only satisfy a few of our wants

• We must constantly make choices about which of our wants to satisfy

• We can satisfy all our wants without any limitations

What is the reason there is no free lunch according to the text?

• Because the pizza stand offering pizza and soda for $0.00 is a scam

• Because the pizza stand is not trustworthy

• Because there is always a hidden cost

• Because the pizza and soda are of low quality

What do scarcity, choice, and opportunity cost help form according to the text?

• The foundation for scientific research

• The foundation for economic thinking and reasoning

• The foundation for social interactions

• The foundation for political decision-making