TRUE OR FALSE

1. The opportunity cost of a choice is the

value of the foregone alternative that was
not chosen.

2. Goods and services are scarce because

resources to produce them are scarce.

3. Physical resources includes both human

capital and business capital

4. Services are physical objects someone

produces
5. Because scarcity exists, people must
choose between alternatives

6. Trade-offs are another way of talking about

opportunity cost.

7. The world’s supply resources is unlimited.

8.Wealthy people like Bill Gates and Steve

Jobs don’t have to deal with scarcity
9. Scarcity can be explained by saying. “we
cant have everything we want”

10. People will do a particular activity only if

the benefits are greater than the costs

11. Resources satisfy wants

12. The resources used to make all goods

and services are called factors of production
13. Economics is the study of choices

14. Goods are physical objects that someone

produces.

15. Sacrcity exist because resources are

limited and wants are unlimited.
IDENTIFICATION
16. It is considered to be the basic economic
problem.

17. is the social science that involves the use

of scarce resources to satisfy unlimited
wants.

18. It is a loss of potential gain from other

alternatives when one alternative is chosen.
19. Physical and human efforts exerted in
production

20. It is the study of society and how

people behave and influence the world
around them.