Scarcity Quiz 4 (20 MCQs)

Quiz Instructions

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1. Which of the factors of production are used in producing and selling a hat?

Correct Answer: B) Natural, capital, and human resources.

2. What is it called when you choose between two possible uses for a resource, giving up one alternative for another?

Correct Answer: A) Trade Offs.

3. Which of the following in an example of LAND.

Correct Answer: A) Coal.

4. If resources are scarce, what must a business be?

Correct Answer: B) Efficient.

5. A person who purchases a good or service

Correct Answer: A) Consumer.

6. A storm destroys all of the farmland in Ireland. What does this do for the market for vegetables?

Correct Answer: D) Supply decreases.

7. What is one way that we can deal with situations of scarcity?

Correct Answer: A) Rationing the good that is in short supply.

8. When water falls from the sky as rain, hail, sleet or snow.

Correct Answer: B) Precipitation.

9. Hour spent on 1 activity takes away 1 hour of another activity. This trade-off is called

Correct Answer: D) Opportunity cost.

10. The branch of knowledge concerned with the production, consumption, and transfer of wealth

Correct Answer: A) Economics.

11. Which of the following is an example of a capital resource?

Correct Answer: A) Tools and Equipment.

12. Why doesn't Mexico City have clean drinking water today? Where can this information be found?

Correct Answer: A) An earthquake in 1985, paragraph 6.

13. Knowledge and skills a worker gains through education and experience

Correct Answer: B) Human Capital.

14. We can avoid wastage of water by-

Correct Answer: A) Using water sprinkler for irrigation.

15. Scarcity exists when ..... exceed the capacity of available .....

Correct Answer: C) Wants, resources.

16. A sale at a store would be an example of .....

Correct Answer: B) An incentive.

17. Factors causing shortage of water are .....

Correct Answer: D) All.

18. In the winter, Canada's climate was too cold to grow many crops. Some crops became scarce. What caused this scarcity?

Correct Answer: D) The season.

19. The combination of limited economic resources and unlimited wants is known as:

Correct Answer: C) Scarcity.

20. When the price of a product increases, a consumer is able to buy less of it with a given money income. This describes:

Correct Answer: C) The income effect.