Praxis 7815 Practice Question
Scenario/Extract:
A social studies teacher creates mini-scenarios illustrating key economic terms to help students correctly understand the vocabulary and provides students with the following situation.
Terry loves strawberries and asks her mom if they can buy some fresh strawberries to eat with her birthday cake. Her mother explains that, because they live in the Midwest, it is difficult to find tasty, fresh strawberries in November.
Which of the following economic terms does the scenario best represent?
Correct Answer: B
Rationale: The scenario illustrates scarcity, which refers to the limited availability of resources in relation to unlimited wants. This fundamental economic concept highlights the necessity of making choices due to resource limitations.
Option A, rationing, involves distributing scarce resources among individuals, which is not depicted here. Option C, trade-off, refers to the alternatives forgone when choosing one option over another, but does not capture the essence of limited resources. Option D, opportunity cost, focuses on the value of the next best alternative that is sacrificed, which is a consequence of scarcity but not the definition itself. Thus, scarcity is the most fitting term.
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