Economic Choices — Answer Key
Part A: Multiple Choice
Circle the best answer for each question.
1. There is only ONE cookie left and two kids want it. This is an example of what?
A) Scarcity
B) Saving
C) Barter
D) Taxes
Scarcity means there is not enough of something for everyone who wants it, like one cookie for two kids.
2. The store has only 2 toys but Jose wants 4. Why must he choose?
A) The store is closed
B) Toys are scarce
C) He has too much money
D) His bag is big
When the supply is limited, it is scarce, so Jose must choose only a few even though he wants more.
3. Why is scarcity a problem?
A) It makes things free
B) There is plenty of everything
C) People cannot have all they want
D) Everyone gets more
Scarcity means limited supply, so people must choose and cannot have every single thing they want.
4. During a long hot summer, water may become scarce. That means water is:
A) Free for all
B) Very easy to waste
C) Limited and must be saved
D) Not needed
Scarce water means there is not much, so families must save it and use only what they really need.
Part B: Fill in the Blank
Write the correct answer on each line.
1. When there is not enough of something, we call it scarcity.
Scarcity happens when resources are limited and cannot meet everyone's wants and needs.
2. Because of scarcity, people must make a choice.
When there is not enough, people cannot have everything, so they must choose what matters most.
3. If a store has only 2 left, the item is in short supply.
Supply is how many of something there are, and a short supply means not many are left.
4. We can help with scarcity by not wasting things we have.
If we do not waste food, water, or money, they last longer and scarcity becomes less of a problem.
5. Scarcity makes choices harder because you cannot have both.
With fewer things available, every choice matters more, so choosing feels harder than usual.