This quiz works best with JavaScript enabled. Home > Microeconomics > Scarcity > Scarcity – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Scarcity Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. During a hurricane, plywood and other supplies were scarce. What caused this scarcity? A) A disaster. B) The cost. C) Trading. D) The store. Show Answer Correct Answer: A) A disaster. 2. Most American households receive income from selling which resource? A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: B) Labor. 3. What to produce means- A) What technique to be used and in what ratio. B) What goods are to be produced and in what quantity. C) How to distribute the national income among individuals. D) None of the above. Show Answer Correct Answer: B) What goods are to be produced and in what quantity. 4. Which of the following would be CAPITAL A) A machine. B) A box of cereal. C) Water. D) A new risky idea. Show Answer Correct Answer: A) A machine. 5. Why do all societies have to make decisions about how resources will be used? A) People are greedy. B) There are not enough resources for those who want them. C) Resources are too expensive for most people. D) Because there is a huge gap between the rich and poor. Show Answer Correct Answer: B) There are not enough resources for those who want them. 6. Efficiency along the PPC implies A) Goods are produced quickly. B) The state of technology is maximized. C) , c) In order to get more of a good, some of another must be given up. D) Goods are distributed equitably. Show Answer Correct Answer: C) , c) In order to get more of a good, some of another must be given up. 7. The point where supply and demand are balanced is? A) Product. B) Demand. C) Surplus. D) Equilibrium. Show Answer Correct Answer: D) Equilibrium. 8. What are all societies forced to do because of scarcity? A) Make production decisions. B) Conserve resources. C) Limit resource use. D) Charge large amount of money for available resources. Show Answer Correct Answer: A) Make production decisions. 9. Earth is known as ..... planet. A) Blue. B) Green. C) Red. D) None. Show Answer Correct Answer: A) Blue. 10. Every choice has a ..... A) Benefit. B) Opportunity cost. C) Both. D) None of above. Show Answer Correct Answer: C) Both. 11. Land, labor, capital, and entrepreneurship A) Economy. B) Infrastructure. C) Factors of production. D) Capital. Show Answer Correct Answer: C) Factors of production. 12. The amount of water on average used by individuals, based on domestic is and agricultural or industrial consumption is termed ..... A) Transpiration. B) Fresh water. C) Water scarcity. D) Water footprint. Show Answer Correct Answer: D) Water footprint. 13. To be considered scarces, something must be ..... A) Limited. B) Desireable. C) Limited and Desireable. D) None of above. Show Answer Correct Answer: C) Limited and Desireable. 14. When people need to make economic choices due to a lack of available goods and money, this is called ..... in economic terms. A) Trade offs. B) Scarcity. C) Opportunity cost. D) Incentive. Show Answer Correct Answer: B) Scarcity. 15. Which of the following resources is NOT scarce? A) Diamonds. B) Smallpox. C) Copper. D) None of above. Show Answer Correct Answer: B) Smallpox. 16. What is the accepted rule with rare resources on Earth? A) The rarer they are, the rarer they are of course. B) The rarer they are, the lesser value they acquire. C) The rarer they are, the more valuable they become. D) The rarer they are, the more rare they can become. Show Answer Correct Answer: C) The rarer they are, the more valuable they become. 17. Water scarcity is ..... A) When there is not enough water to meet demand. B) When there is too much water. C) When a country has lots of access to fresh water. D) When a person has not running water in their house. Show Answer Correct Answer: A) When there is not enough water to meet demand. 18. Three percent of the water on Earth is freshwater. Less than 0.5% of all the fresh water on Earth is found A) Underground. B) In aquifers. C) In rivers and lakes. D) Frozen, in ice caps and glaciers. Show Answer Correct Answer: C) In rivers and lakes. 19. High Income Countries use a higher proportion of water on ..... A) Agriculture. B) Domestic. C) Industry. D) None of above. Show Answer Correct Answer: C) Industry. 20. The effort devoted to a task for which you get paid is called A) Labor. B) Capital. C) Resources. D) Production. Show Answer Correct Answer: A) Labor. Next →Related QuizzesMicroeconomics QuizzesScarcity Quiz 2Scarcity Quiz 3Scarcity Quiz 4Scarcity Quiz 5Scarcity Quiz 6Scarcity Quiz 7Scarcity Quiz 8Scarcity Quiz 9Scarcity Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books