A#4 Choices

Benchmark 4-A:

analyze the ways individuals, households, businesses, governments and societies make decisions, are influenced by incentives (economic and intrinsic) and, the availability and use of scarce resources, and that their choices involve costs and varying ways of allocating:

#4 Standards with Test Item Specifications:

Analyze and evaluate the impact of economic choices on the allocation of scarce resources;

Sample Question:

What is the basic concept of economic scarcity?

A. an unlimited demand for an item that is abundant

B. a large supply of an item but limited demand

C. what an individual gives up when making a choice

D. a limited supply to meet unlimited demand *