Title: QUIZ: There is No Such Thing as a Free Lunch -- Economic Lowdown Video Series
Course: Andria Testing FRE2 > Section: There is No Such Thing as a Free Lunch -- Economic Lowdown Video Series

Q: Why does scarcity exist?
- People are greedy and use resources wastefully.
- There are not enough resources to produce everyone’s wants.
- The quantity of goods and services demanded exceeds quantity of goods and services supplied.
- People have more wants than needs.
A: There are not enough resources to produce everyone’s wants.

Q: Because people have unlimited wants and limited resources, they must
- recycle and reuse resources.
- create more resources.
- make choices about which wants to satisfy.
- produce more goods and services to satisfy their wants.
A: make choices about which wants to satisfy.

Q: What is an opportunity cost?
- The most valued opportunity you choose when making a choice
- The most valued opportunity you give up when making a choice
- The least valued opportunity you choose when making a choice
- The least valued opportunity you give up when making a choice
A: The most valued opportunity you give up when making a choice

Q: Because of ____________ people must make choices, and when they choose, they incur a(n)______________.
- needs; opportunity cost
- scarcity; opportunity cost
- resources; opportunity cost
- opportunity cost; scarcity
A: scarcity; opportunity cost

Q: Sal has many options for how to spend her afternoon. She placed them in the order in which she values them: 1) go to a movie, 2) go to the library 3) attend a baseball game, and 4) clean her apartment. Which is her opportunity cost of going to a movie?
- Going to the library
- Attending a baseball game 
- Cleaning her apartment
- Going to the library, attending a baseball game, and cleaning her apartment
A: Going to the library

Q: Why is there no such thing as a free lunch?
- When people choose, they incur an opportunity cost.
- Someone else had to pay for it.
- Society pays for it in other ways.
- When people choose to satisfy their needs, they pay a higher price.
A: When people choose, they incur an opportunity cost.