Scarcity and Resources Quiz
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Questions and Answers

What is the best alternative use of a resource called?

  • Opportunity cost (correct)
  • Trade-off
  • Budget constraint
  • Resource allocation

    • Which economic tool quantifies trade-offs?

  • Normative economics
  • Opportunity cost
  • Positive economics
  • Budget constraints (correct)

    • In economics, what does the economist always consider when talking about choices people make?

  • Budget constraints (correct)
  • Normative economics
  • Opportunity cost
  • Resource allocation

    • Which term refers to the concept of giving up one thing to get something else?

    <p>Trade-off</p> Signup and view all the answers

    Which type of economics focuses on facts and cause-and-effect relationships?

    <p>Positive economics</p> Signup and view all the answers

    What concept does the budget constraint provide information about?

    <p>Trade-offs</p> Signup and view all the answers

    What does the budget constraint equation indicate?

    <p>The more time spent on surfing the Web, the less time available for working at a part-time job.</p> Signup and view all the answers

    In economics, what is defined as the study of how individuals and societies allocate scarce resources to satisfy unlimited wants?

    <p>Resource Allocation</p> Signup and view all the answers

    What concept explains that spending more time on one activity means sacrificing time that could have been spent on another activity?

    <p>Opportunity Cost</p> Signup and view all the answers

    Which type of economics focuses on analyzing what 'is' or 'was,' without making value judgments?

    <p>Positive Economics</p> Signup and view all the answers

    If a person decides to allocate all 5 free hours to working at a part-time job, what principle does this decision reflect?

    <p>Scarcity Principle</p> Signup and view all the answers

    Which economic principle is illustrated by the fact that spending extra time on one activity reduces the time available for another activity?

    <p>Trade-Off</p> Signup and view all the answers

    What is the definition of scarcity according to the text?

    <p>Scarcity exists because people have unlimited wants in a world of limited resources.</p> Signup and view all the answers

    How does society allocate scarce resources in a modern economy?

    <p>Society allocates scarce resources to those who are able and willing to pay for them.</p> Signup and view all the answers

    What is the principle of resource allocation according to the text?

    <p>Scarce resources are allocated to those who are able and willing to pay for them.</p> Signup and view all the answers

    What is the role of positive economics according to the text?

    <p>Positive economics describes economic phenomena without imposing value judgments.</p> Signup and view all the answers

    What is the role of normative economics according to the text?

    <p>Normative economics determines the allocation of resources based on moral values.</p> Signup and view all the answers

    How does the allocation of time determine the allocation of scarce resources?

    <p>The allocation of time determines the allocation of scarce resources by determining how much people are able and willing to pay for them.</p> Signup and view all the answers

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