Topic Questions (MCQ – EASY): Scarcity, choice and opportunity cost – 3auk

1.

What is the fundamental economic problem that an economy must address?

Achieving fastest growth in production

Allocating resources among alternative uses

Ensuring all resources are fully exploited

Reducing inequalities in income distribution

2.

When there is scarcity, what is the necessary consequence?

Individuals must make choices.

It becomes challenging for governments to provide public goods.

Resource allocation by producers may not be efficient.

The earnings of workers could potentially be lower.

3.

Which of the following statements about scarcity is true?

Scarcity only impacts low-income earners.

Scarcity necessitates individuals to make choices.

Scarcity can be eliminated by declining prices.

Advances in technology will solve the problem of scarcity.

4.

Arrange these economic concepts in the correct sequence.

A

B

C

D