AP Macroeconomics Practice Quiz: Scarcity
Written by AP Content Team, Verified for 2026 AP Exams, Last updated: May 2026
Test your understanding with short quizzes. This quiz has 7 questions to check your progress.
Question 1 of 7
All Questions (7)
A) A temporary shortage of a specific product due to a supply chain issue.
B) The condition where unlimited human wants exceed the limited resources available to satisfy them.
C) The unequal distribution of income and wealth within a society.
D) The total amount of money and financial assets available in an economy.
Correct Answer: B
Scarcity is the fundamental economic problem that arises because resources are limited, while human wants are virtually unlimited. This is a permanent condition, unlike a temporary shortage.
A) Eliminate the use of all non-renewable resources.
B) Ensure that all goods and services are distributed equally.
C) Make choices about how to allocate limited resources.
D) Rely solely on the government to provide for all needs.
Correct Answer: C
Because resources are scarce, it is impossible to produce everything that everyone wants. Therefore, individuals, businesses, and governments must make choices and face trade-offs when deciding how to use their resources.
A) Scarcity forcing a choice.
B) A market failure.
C) Technological inefficiency.
D) A surplus of resources.
Correct Answer: A
The city has limited economic resources (its budget) and multiple wants (a new library and repaired roads). Because it cannot afford both, it is forced to make a choice, which is a direct consequence of scarcity.
A) The desire for a luxury car.
B) The money in a consumer's wallet.
C) The satisfaction from eating a meal.
D) The factory machinery used to produce goods.
Correct Answer: D
Economic resources (or factors of production) are the inputs used to create goods and services. Factory machinery is a form of capital, which is a key economic resource. A desire is a want, money is a medium of exchange, and satisfaction is utility.
A) Scarcity is a temporary problem, while a shortage is permanent.
B) Scarcity affects only developing countries, while shortages can happen anywhere.
C) Scarcity is a fundamental condition of limited resources, while a shortage is a market condition where quantity demanded exceeds quantity supplied at a given price.
D) Scarcity can be solved by government intervention, while a shortage cannot.
Correct Answer: C
Scarcity is the universal and constant state of having limited resources for unlimited wants. A shortage is a specific, often temporary, situation in a market, typically caused by a price being below the equilibrium level.
A) Movies are more entertaining than naps.
B) The individual's time is a scarce resource.
C) Naps have no economic value.
D) The individual has unlimited wants.
Correct Answer: B
Time is a finite and therefore scarce resource for every individual. Because the individual cannot both watch the movie and take a nap in the same two-hour period, they are forced to make a choice due to the scarcity of their time.
A) All economic resources are owned and controlled by the government.
B) Technological advancements can completely eliminate the problem of scarcity.
C) Societies are forced to make choices about resource allocation because resources are scarce.
D) The primary economic goal is to ensure an equal distribution of all goods produced.
Correct Answer: C
Scarcity is a universal economic problem that affects every society, from the wealthiest to the poorest. Because no society has unlimited resources, every society must confront the problem of scarcity and make choices about how to use its limited resources.