Scarcity, Trade-offs, and Opportunity Cost

Which describes scarcity? A. A condition where supply exceeds demand. B. The situation that exists when there is temporarily a shortage of a good or service. C. Unlimited wants exceeding limited resources. D. An unlimited demand for goods and services.

2. Opportunity costs is MOST RELATED to which concept? A      price floors B       scarcity C      elasticity D      absolute advantage

3. Opportunity cost is best described as the A sum of all production costs B most expensive resource used in production C value of the best alternative forgone when a choice is made D monetary value of all alternatives forgone when a choice is made

4. If Jim chooses job A, he will recieve $50,000 a year, full benefits and 2 weeks of paid vacation.  If he chooses job B he will recieve $60,000 a year, full benefits and no paid vacation.  Assuming Jim chooses job B, which statement is correct. A      Jim has incurred no opportunity cost because the jobs were completely different. B       Jim's opportunity cost is only the $50,000 he could have gotten at the other job. C      Jim's opportunity cost is everything he gave up at job A. D      Jim's opportunity cost is everything he is gaining at job B.