The Economics of Scarcity

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Which of the following best describes the fundamental economic problem?

There is a scarcity of resources to satisfy all human wants and needs. (correct)

There is an equal distribution of resources to satisfy all human wants and needs.

There is an unlimited supply of resources to satisfy all human wants and needs.

There is an excess of resources to satisfy all human wants and needs.

What are economic goods?

Goods that are abundant in supply and have an economic cost.

Goods that are scarce in supply and have no opportunity cost.

Goods that are scarce in supply and have an opportunity cost. (correct)

Goods that are abundant in supply and have no opportunity cost.

What are free goods?

Goods that are scarce in supply and have no opportunity cost.

Goods that are abundant in supply and have no opportunity cost. (correct)

Goods that are abundant in supply and have an economic cost.

Goods that are scarce in supply and have an opportunity cost.

What is the definition of scarcity in the context of economics?

A lack of resources. Signup and view all the answers

What is the nature of the economic problem?

There are finite resources and unlimited wants. Signup and view all the answers

Match the following economic concepts with their definitions:

Resources = Inputs required for the production of goods and services Scarcity = A lack of something (in this context, resources) Economic goods = Goods that are scarce in supply and so can only be produced with an economic cost and/or consumed with a price Free goods = Goods that are abundant in supply, usually referring to natural sources Signup and view all the answers

Match the following statements with the correct economic concepts:

There is a scarcity of resources to satisfy all human wants and needs = Fundamental economic problem An economic good is a good with an opportunity cost = Definition of economic goods There are finite resources and unlimited wants = Key aspect of the economic problem All the goods we buy are economic goods = Statement about the nature of goods in the market Signup and view all the answers

Match the following economic terms to their definitions:

Scarcity = A lack of something, in this context, resources Opportunity cost = The cost of forgoing the next best alternative when making a decision Production = The process of creating goods and services Consumption = The use of goods and services by households Signup and view all the answers

Match the following economic ideas with their descriptions:

Finite resources and unlimited wants = Key aspect of the economic problem Economic goods = Goods that are scarce and have an opportunity cost Free goods = Goods that are abundant and have no economic cost Scarcity = The fundamental economic problem caused by the lack of resources Signup and view all the answers

Match the following economic terms with their meanings:

Resources = Inputs required for the production of goods and services Scarcity = A lack of something, in this context, resources Economic goods = Goods that are scarce and have an opportunity cost Free goods = Goods that are abundant and have no economic cost Signup and view all the answers