SLO #1 & #2
Every society faces trade-offs because we live in a world of scarcity. Suppose a student athlete has the opportunity to earn $200,00 next year playing for a minor league baseball team, $900,000 next year playing for a European professional football team, or $0 returning to college for another year The opportunity cost of the student athlete returning to college next year is $______.
900,000
When the price of Microsoft stock increased more than 27 percent in the first part of 2013, Bill Gates, who owns 436 million shares of Microsoft stock, once again became the world's richest man Does Bill Gates, the richest person in the world, face scarcity? A. Yes B. No
A. Yes
one of the basic facts of life is that people must make choices as they try to attain their goals. this unavoidable fact comes from a reality an economist calls A. scarcity B. economics C. the market D. rationality
A. scarcity
Which of the following best describes scarcity? A. wants cannot be fulfilled and thus all goods must be rationed B. Unlimited wants exceed the limited resources available C. prices of goods are very high D. Markets cannot properly allocate resources
B. Unlimited wants exceed the limited resources available
Scarcity is central to the study of economics because it implies that A. society must make decisions at the margin B. every choice involves an opportunity C. wants are unlimited D. economic agents are rational
B. every choice involves an opportunity cost
