Economics

What does scarcity mean?

• The inability to satisfy all wants at the same time. All resources and goods are limited.

• What is given up when a choice is made (the second-best alternative)

• The combining of human, natural, capital, and entrepreneurship resources to make goods or provide services

A local shoe store had this sign in the window. This is an example of -

• Incentive

• Opportunity Cost

• Price

• Supply and Demand

Jennifer works at the local pizza parlor. She bakes the pizza crust and slices vegetables. Jennifer is an example of ______

• a human resource

• a natural resource

• a capital resource

Jasmine has to decide between going to college and joining the workforce. What is the opportunity cost if she decides to go to college?

• the amount of time she will have to study

• the money she could have made in the workforce

• the new people she will meet in college

• the cost of college, books, and room and board

Which economic system is being defined as one where communities use simple tools and methods to harvest and hunt for food, often resulting in little economic growth?

• Free Market

• Traditional

• Mixed

• Command

This type of economy has little or no involvement in the economy and is therefore just a theory.

• Traitional

• Command

• Traditional

• Free Market

What type of economic system does the United States have?

• Free market

• Mixed

• Traditional

• Command

If severe droughts in California and Florida cause a major drop in the quantity of oranges available for sale, what is likely to happen to the price of oranges and orange juice nationwide?

• Prices will drop

• Prices will stay the same

• Prices will increase

• None of the above

After Valentine's Day, stores are filled with a large supply of leftover candy. Few customers want this candy since the holiday has passed. In this situation, when there is a large supply of a product, but low demand, what happens to the price for this item?

• The price will decrease

• The price will stay the same

• The price will increase

• The price reaches equilibrium

When Apple releases a new model of iPhone, the demand for it is very high. Customers will wait in line for hours to get their hands on the newest phone. In this situation, when the demand for a product is very high but the supply is limited, what will happen to the price of that product?

• The price decreases

• The price increases

• There is equilibrium

• The price stays the same