Scarcity is a problem only for poor countries.

2. Economics is the study of how to use unlimited resources to satisfy limited wants.
4. If Jack slept in instead of either going to school or jogging, the missed class is his opportunity cost of sleep.

The fact that human wants cannot be fully satisfied with available resources is called the problem of:

2. Opportunity cost
4. Scarcity
6. Normative economics
8. Resources
10. Land

2. The problem of scarcity exists
4. Only in poor economies
6. Only in rich economies
8. In all economies
10. Only when people waste resources
12. Now but will be eliminated with economic growth

2. When the government chooses to use resources to build a dam, those resources are no longer available to build a highway. This illustrates the concept of:
4. A market mechanism
6. Macroeconomics
8. Opportunity cost
10. A command economy
12. Cooperation

2. Carmela has the chance either to attend an economics lecture or play tennis. If she chooses to attend the lecture, the value of playing tennis is:
4. Greater than the value of the lecture
6. Equal to the value of the lecture
8. The opportunity cost of attending the lecture
10. Zero

Short Answer (Communication Skills)

2. What is meant by scarcity, and why does the existence of scarcity mean that we must make choices? (3 marks)
4. If all people would only economize, the problem of scarcity would be solved. Agree or disagree and explain why. (3 marks)

Problem (Thinking/Inquiry, Communication Skills) 5 marks

Ashely, Doug, and Mei-Lin are planning to travel from Halifax to Sydney. The trip takes one hour by airplane and five hours by train.The air fare is $100 and train fare is $60. They all have to take time off from work while travelling. Ashely earns $5 per hour in her job, Doug $10 per hour, and Mei-Lin $12 per hour.

Calculate the opportunity cost of air and train travel for each person. Assuming they are all optimizers, how should each of them travel to Sydney?

Answer rating: 100% (QA)

Scarcity refers to the fundamental economic problem of having limited resources and unlimited wants ... View the full answer