Practice Questions
Click any question to see detailed solutions
How does the concept of utility maximization relate to the impact of limited resources in economic decision-making?
People have limited resources, like money or time. Other options are incorrect because Some might think people always pick the best option without thi...
How do externalities influence the provision of public goods in an economy with limited resources?
Externalities are effects that impact people who are not directly involved in a transaction. Other options are incorrect because This idea suggests th...
How does limited resources affect the allocation of public goods in an economy?
When resources are limited, we must choose carefully how to use them. Other options are incorrect because Some might think that having fewer resources...
How does limited resource allocation affect the provision of public goods in an economy that relies heavily on factors of production?
When resources are limited, there isn't enough to provide all the public goods people need. Other options are incorrect because Some might think that ...
How does the concept of economic efficiency influence market equilibrium when limited resources are allocated to public goods?
Economic efficiency means using resources in the best way. Other options are incorrect because Some might think that focusing on public goods means we...
What does the concept of scarcity in economics primarily refer to?
Scarcity means there are not enough resources to satisfy everyone's wants. Other options are incorrect because This option suggests there are endless ...
What is the opportunity cost of choosing to spend limited resources on education instead of healthcare?
When you choose education, you miss out on the benefits of better healthcare. Other options are incorrect because Some might think the total money spe...
In an economy with limited resources, what is the primary goal of resource allocation?
The main goal is to use resources in the best way possible. Other options are incorrect because Some might think that making quick money is the goal; ...
What is the primary cause of scarcity in an economy?
People always want more things than what is available. Other options are incorrect because Some might think that wasting resources causes scarcity; It...
Arrange the following steps in the process of addressing scarcity in economics from first to last: A) Identify limited resources, B) Allocate resources based on priorities, C) Evaluate the outcomes of resource allocation, D) Recognize unlimited human wants.
First, we identify limited resources. Other options are incorrect because This option starts with identifying resources but skips recognizing human wa...
Scarcity:Resource Allocation :: Unlimited Wants:?
When we have unlimited wants but limited resources, we must make choices. Other options are incorrect because Some might think sustainable development...
How does the concept of scarcity influence economic decision-making in society?
Scarcity means we have limited resources. Other options are incorrect because This idea is wrong because resources are not always easy to find; This i...
In a scenario where a country faces a severe drought, which of the following responses best illustrates the principle of scarcity in resource allocation?
Water is limited during a drought. Other options are incorrect because Increasing subsidies might seem helpful, but it doesn't solve the water shortag...
In a small town facing a severe drought, the local government has to decide how to allocate its limited water resources among three essential areas: agriculture, residential use, and local businesses. Given the principle of scarcity, which approach would best demonstrate an understanding of resource prioritization in this scenario?
This choice makes sure that food production is prioritized. Other options are incorrect because This option seems fair, but it ignores the most import...
Which of the following statements correctly reflect the implications of scarcity in economics? Select all that apply.
All the statements misunderstand scarcity. Other options are incorrect because This option suggests that scarcity does not force choices; This stateme...
A government is faced with a shortage of medical supplies during a pandemic. It must decide how to allocate these limited resources among hospitals, research for a vaccine, and public health awareness campaigns. Which category best represents the economic principle illustrated by this scenario?
Opportunity cost is what you give up when you choose one option over another. Other options are incorrect because This idea is about how much people w...
In economics, the principle of __________ highlights the necessity for making choices due to limited resources and unlimited wants, especially during critical situations such as wars or pandemics.
Scarcity means there are not enough resources to meet all our wants. Other options are incorrect because Abundance means having plenty of resources; I...
Master Impact of Limited Resources
Ready to take your understanding to the next level? Access personalized practice sessions, progress tracking, and advanced learning tools.