Title: QUIZ: Choices Are Everywhere: Why Can't We Just Have It All? -- Page One Economics®
Course: Kelly's Copying and Exporting Course > Section: Choices Are Everywhere: Why Can't We Just Have It All? -- Page One Economics®

Q: What is the main economic concept being discussed?
- Inflation
- Scarcity
- Supply and demand
- Deflation
A: Scarcity

Q: What does the term "opportunity cost" refer to?
- The cost of goods and services bought on credit
- The total amount spent by a government
- The value of the next-best alternative when a decision is made
- The amount saved after making a purchase
A: The value of the next-best alternative when a decision is made

Q: In economic terms, what does the example of receiving a $20 gift card during the holidays represent?
- A price floor that limits consumer spending
- A budget constraint
- A policy tool to control inflation
- A measure of national economic growth
A: A budget constraint

Q: What does the essay suggest about government spending and debt?
- Debt eliminates scarcity
- Government spending does not have limits
- Debt allows borrowing against future income
- Taxation is unnecessary for government revenue
A: Debt allows borrowing against future income

Q: A government might choose to raise taxes to
- limit consumer spending.
- reduce the national debt immediately.
- increase revenue for more government spending.
- discourage borrowing.
A: increase revenue for more government spending.

Q: What is the similarity between personal budgets and government budgets mentioned in the essay?
- Both can print more money when needed
- Both must consider opportunity costs when spending
- Both have unlimited resources
- Both can avoid borrowing indefinitely
A: Both must consider opportunity costs when spending

Q: Which spending categories are mentioned as top federal expenditures?
- Education, transportation, and entertainment
- Social Security, health care, and national defense
- Environmental protection, tourism, and foreign aid
- Infrastructure, public parks, and sports facilities
A: Social Security, health care, and national defense

Q: What is the downside of government debt?
- It can lead to increased government revenue.
- It restricts future income for other spending.
- It encourages citizens to save more money.
- It always results in economic growth.
A: It restricts future income for other spending.

Q: How does the essay define "scarcity"?
- A condition where resources exceed wants
- A condition where wants exceed resources
- The lack of availability of basic goods and services
- A surplus of resources with limited wants
A: A condition where wants exceed resources

Q: What is the essay's main message regarding economic decisionmaking?
- Decisions should be based on personal preferences only.
- Understanding scarcity and opportunity cost is essential.
- Governments should always raise taxes to manage debt.
- Credit cards are a good way to manage scarcity.
A: Understanding scarcity and opportunity cost is essential.