<p> DO NOT WRITE ON THIS PAPER!!!!!</p><p>1. Which of the following statements is NOT consistent with the concept of scarcity?</p><p> a) People are scarce because they have many valuable uses in the world. b) Trash is scarce because you rarely see much of it around unless you go to a landfill. c) Knowledge is scarce because what we wish to know is so great relative to what we do know at this time. d) Electricity is scarce because it has many valuable uses.</p><p>2. Which of the following resources was considered scarce in 1000 AD?</p><p> a) Petroleum b) Aluminum c) Computers d) None of the above</p><p>3. Which of the following people must deal with scarcity when they make decisions during the day?</p><p> a) The richest person in the world b) A homeless person living in New York City c) A commuter living in the suburbs and working in the city d) All of these people must deal with scarcity</p><p>4. If an good/service is scarce, it must be: a) Unlimited in amount b) Unlimited in amount and want c) Limited in amount and want d) Limited in amount and unlimited in want</p><p>5. An opportunity cost is: a) The choice that you make in every economic decision b) The highest-valued alternative in any economic decision c) An economic decision d) The last choice you have when given several options.</p><p>6. Shipwrecked survivors on a deserted island, even if they did not have a rescue boat, might consider a wood paddle to be a scarce resource because:</p><p> a) It reminds them of home. b) It can be burned for heat. c) It can be used for several valuable purposes. d) They would not consider it a scarce resource.</p><p>7. Which of the following statements is not an economic question people in every society must answer?</p><p> a) What to produce? b) Who decides what is fair? c) How to produce it? d) For whom will it be produced?</p><p>8. What is the economic problem and how does it affect a government’s decision making?</p><p>9. Do students face scarcity? Provide TWO examples to support your answer? </p><p>10. All costs involve money. Do you agree or disagree with this statement? Why or why not? </p>