Dorat Al-Khaleej Private School

Economics Grade 11
Chapter 1: Scarcity, Choice and Opportunity Cost
Multiple-Choice Questions

1. What does the concept of scarcity in

economics imply? b) Limited resources and unlimited wants
a) Resources are unlimited c) Unlimited resources and limited wants
b) Wants are unlimited d) Limited resources and limited wants
c) Both resources and wants are unlimited
d) None of the above
5. Opportunity cost is:
a) The price of a good or service
2. Scarcity leads to the necessity of b) The value of the next best alternative
making: foregone
a) Unlimited choices c) The total cost of production
b) Limited choices d) The monetary cost of a decision
c) No choices
d) None of the above 6. The concept of opportunity cost is
most closely related to:

3. Which of the following is an example a) Free goods

of a "need"? b) Unlimited resources
a) Designer clothing c) Scarcity
b) Fast food d) Wants
c) Clean drinking water
d) Video games 7. Trade-offs in decision-making refer
to:

4. The economic problem arises due to: a) The unlimited benefits of a choice

a) Unlimited resources and unlimited wants b) Sacrificing the next best alternative for a
choice
c) Making choices without any costs
d) None of the above
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8. Allocative efficiency means: 12. The concept of choice is closely related
to:
a) Producing goods with the lowest possible
costs a) Unlimited resources
b) Producing goods that society values the most b) Scarcity
c) Producing goods using the most advanced c) Negative economics
technology
d) Underutilization
d) Producing goods in the greatest quantity

9. Underutilization of resources occurs

when: 13. Opportunity cost is a fundamental
concept that highlights the reality
a) Resources are fully employed that:
b) Resources are overutilized a) Unlimited wants can be satisfied
c) Resources are not fully employed b) Resources are unlimited
d) Resources are allocated efficiently c) Every choice has associated costs
d) Scarcity is not a concern
10. Government intervention in a market
economy can influence:
a) Resource scarcity
b) Consumer preferences
c) Prices and resource allocation
d) Technological advancement

11. Which concept best represents the

trade-off between studying for an
exam and working part-time?
a) Opportunity cost
b) Allocative efficiency
c) Underutilization
d) Positive economics
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Instructions: Answer the following questions based on your understanding of scarcity,
opportunity cost, the economic problem, and choices.

Differentiate between a "need" and a "want"

using examples.

Define the term "scarcity" in economics.

Ans:

Explain how scarcity is related to the concept of

choice.
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How does the concept of opportunity cost
influence decision-making?

What is the economic problem? Explain its

significance in decision-making.

Describe the concept of opportunity cost.

Provide an illustrative example.