Basic Economic Problems

 Scarcity

 What is scarcity?
 What are the causes of scarcity?
 What are the consequences of scarcity?

 Choice

 What is choice?
 What are the factors that influence choice?
 What are the consequences of choice?

 Opportunity cost

 What is opportunity cost?

 How can opportunity cost be used to make decisions?
 What are the consequences of ignoring opportunity cost?

Instructions

 Read each question carefully.

 Choose the best answer for each question.
 There is only one correct answer for each question.
 You have 30 minutes to complete this assessment.

Questions

1. What is scarcity?

A. A situation where there are not enough resources to meet all wants.
B. A situation where there are more resources than wants.
C. A situation where there is a perfect balance between resources and wants.
2. What are the causes of scarcity?

A. Unlimited wants and limited resources.

B. Limited wants and unlimited resources.
C. Perfect balance between wants and resources.
3. What are the consequences of scarcity?

A. People have to make choices.

B. People have to work hard to get what they want.
C. People have to live in poverty.
4. What is choice?

A. The ability to select between two or more alternatives.

B. The ability to select only one alternative.
 C. The ability to select no alternatives.
5. What are the factors that influence choice?

A. The availability of resources.

B. The cost of resources.
C. The individual's preferences.
6. What are the consequences of choice?

A. Opportunity cost.
B. Satisfaction.
C. Both opportunity cost and satisfaction.
7. What is opportunity cost?

A. The cost of the next best alternative that is given up when a choice is made.
B. The cost of the first best alternative that is given up when a choice is made.
C. The cost of the last best alternative that is given up when a choice is made.
8. How can opportunity cost be used to make decisions?

A. By comparing the opportunity costs of different choices, individuals can make the
best decision for themselves.
B. By ignoring opportunity cost, individuals can make the best decision for themselves.
C. Opportunity cost cannot be used to make decisions.
9. What are the consequences of ignoring opportunity cost?

A. Individuals may not make the best decision for themselves.

B. Individuals may make the best decision for themselves.
C. Opportunity cost cannot be ignored.

Answer Key

1. A
2. A
3. A
4. A
5. B
6. C
7. A
8. A
9. A

This is just a sample assessment, and the specific questions and answers may vary
depending on the needs of the students and the teacher. It is important to be flexible
and adaptable, and to make changes to the assessment as needed.