Question: Scarcity arises because

Answer: resources are finite and inadequate to meet all human wants and needs

Question: In the production of goods and services, trade-offs exist because

Answer: society has only a limited amount of productive resources

Question: Scarcity implies that people must

Answer: make choices

Question: Scarcity

Answer: is not a shortage

Question: The difference between scarcity and a shortage is that

Answer: scarcity always is a part of human life while shortages usually are temporary

Question: The value of the best alternative sacrificed to obtain something you want is referred to as

Answer: opportunity cost

Question: Fred and Ann both decide to see the same movie when they are given free movie tickets. We know that

Answer: both bear the an opportunity cost since they could have done other things instead of see the movie

Question: The concept of opportunity cost exists because

Answer: of scarcity

Question: If all resources were perfectly adaptable for alternative uses, the production possibilities curve would

Answer: be a straight line

Question: A country operates inside its production possibilities curve; this may be caused by

Answer: unemployment