Scarcity & opportunity cost

About this practice set

Scarcity & opportunity cost is a Economics & Finance quiz (Foundations) with 21 multiple-choice questions. Pick an answer and read the explanation that follows.

What you will be asked

• Scarcity means that:
• Choosing to study instead of working has the opportunity cost of:
• A free good is one that is:
• Opportunity cost is best measured in terms of:
• Which is NOT an example of a scarce resource?
• With all its resources, an economy can produce at most 25 wheat or at most 20 cloth (a straight-line trade-off). What is the opportunity cost of one wheat, in cloth?
• You could work 5 hours at $19 per hour, but you spend that time at a free concert. What is the opportunity cost of going to the concert?
• You can spend an afternoon on Option A (worth $20) or Option B (worth $60). If you choose the better option, which is it and what is the opportunity cost of that choice?

…and 13 more.