TEST BANK
Understanding Economics, 8th Edition
By Mark Lovewell
TU
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, TABLE OF CONTENT
PART 1 WORKING WITH ECONOMICS
Chapter 1: The Economic Problem
Chapter 2: Demand and Supply
Chapter 3: Elasticity
PART 2 EFFICIENCY, EQUITY, AND ECOLOGICAL SUSTAINABILITY
Chapter 4: Costs of Production
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Chapter 5: Perfect Competition
Chapter 6: Monopoly and Imperfect Competition
Chapter 7: Economic Welfare, the Environment, and Income Distribution
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PART 3 ECONOMIC STABILITY CHAPTER
8: Measures of Economic Activity Chapter
9: Inflation and Unemployment Chapter
10: Economic Fluctuations Chapter
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11: Fiscal Policy Chapter
12: Money Chapter
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13: Monetary Policy
PART 4 CANADA IN THE GLOBAL ECONOMY CHAPTER
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14: The Foreign Sector Chapter
15: Foreign Trade
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Test Bank for
Understanding Economics, 8th Edition by Mark Lovewell
Chapter 01 - The Economic Problem
Chapter 01
The Economic Problem
TU
Multiple Choice Questions
1. The economic problem is essentially one of deciding how to make the best use of:
A. unlimited resources to satisfy unlimited wants
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B. limited resources to satisfy unlimited wants
C. unlimited resources to satisfy limited wants
D. limited resources to satisfy limited wants
E. free resources to satisfy expensive wants
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Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants, but limited resources-that underlies the
definition of economics.
Topic: 01-02 The Economic Problem
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Type: Definition
2. Economists assume that people customarily behave rationally, meaning that people:
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A. virtually always weigh the personal benefits and costs of every available action and choose
an action on the basis of their individual wants
B. act in a rational way when buying and selling products, but not in other settings
C. act rationally when they buy products, but not when they sell them
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D. act rationally when they sell products, but not when they buy them
E. are unable to act in an irrational way
U
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants, but limited resources-that underlies the
definition of economics.
Topic: 01-02 The Economic Problem
Type: Definition
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Chapter 01 - The Economic Problem
3. An economist who says that consumer wants are inexhaustible means that:
A. economic resources are valuable only because they can be used to produce consumer
goods
B. economic resources—natural, capital, and human resources—are scarce
C. consumers wants are virtually unlimited and, therefore, incapable of being fully satisfied
D. the nature of consumer wants is highly unpredictable
E. the nature of consumer demand varies from time to time and from country to country
TU
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants, but limited resources-that underlies the
definition of economics.
Topic: 01-02 The Economic Problem
Type: Definition
TO
4. The fundamental problem of economics is:
A. to establish equity between personal and business taxation
B. to establish a democratic political framework for the provision of social goods and services
C. to establish prices that accurately reflect the relative scarcities of products and resources
D. to achieve a fair distribution of money income to reduce poverty
R
E. the scarcity of productive resources relative to consumer wants
G
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants, but limited resources-that underlies the
definition of economics.
Topic: 01-02 The Economic Problem
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Type: Definition
5. The economic problem stems from the fact that:
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A. the production possibilities curve bows out to the right
B. resources are scarce relative to people's demand for goods and services
C. people act to maximize their own welfare
D. historically the production possibilities curve has been shifting down toward the origin
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E. the production possibilities curve bows in to the left
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants, but limited resources-that underlies the
definition of economics.
Topic: 01-02 The Economic Problem
Type: Definition
jkhgfdsa
Understanding Economics, 8th Edition
By Mark Lovewell
TU
TO
R
G
U
R
U
, TABLE OF CONTENT
PART 1 WORKING WITH ECONOMICS
Chapter 1: The Economic Problem
Chapter 2: Demand and Supply
Chapter 3: Elasticity
PART 2 EFFICIENCY, EQUITY, AND ECOLOGICAL SUSTAINABILITY
Chapter 4: Costs of Production
TU
Chapter 5: Perfect Competition
Chapter 6: Monopoly and Imperfect Competition
Chapter 7: Economic Welfare, the Environment, and Income Distribution
TO
PART 3 ECONOMIC STABILITY CHAPTER
8: Measures of Economic Activity Chapter
9: Inflation and Unemployment Chapter
10: Economic Fluctuations Chapter
R
11: Fiscal Policy Chapter
12: Money Chapter
G
13: Monetary Policy
PART 4 CANADA IN THE GLOBAL ECONOMY CHAPTER
U
14: The Foreign Sector Chapter
15: Foreign Trade
R
U
, JKHGFDSAGFD
Test Bank for
Understanding Economics, 8th Edition by Mark Lovewell
Chapter 01 - The Economic Problem
Chapter 01
The Economic Problem
TU
Multiple Choice Questions
1. The economic problem is essentially one of deciding how to make the best use of:
A. unlimited resources to satisfy unlimited wants
TO
B. limited resources to satisfy unlimited wants
C. unlimited resources to satisfy limited wants
D. limited resources to satisfy limited wants
E. free resources to satisfy expensive wants
R
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants, but limited resources-that underlies the
definition of economics.
Topic: 01-02 The Economic Problem
G
Type: Definition
2. Economists assume that people customarily behave rationally, meaning that people:
U
A. virtually always weigh the personal benefits and costs of every available action and choose
an action on the basis of their individual wants
B. act in a rational way when buying and selling products, but not in other settings
C. act rationally when they buy products, but not when they sell them
R
D. act rationally when they sell products, but not when they buy them
E. are unable to act in an irrational way
U
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants, but limited resources-that underlies the
definition of economics.
Topic: 01-02 The Economic Problem
Type: Definition
jkhgfdsa
, JKHGFDSAGFD
Chapter 01 - The Economic Problem
3. An economist who says that consumer wants are inexhaustible means that:
A. economic resources are valuable only because they can be used to produce consumer
goods
B. economic resources—natural, capital, and human resources—are scarce
C. consumers wants are virtually unlimited and, therefore, incapable of being fully satisfied
D. the nature of consumer wants is highly unpredictable
E. the nature of consumer demand varies from time to time and from country to country
TU
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants, but limited resources-that underlies the
definition of economics.
Topic: 01-02 The Economic Problem
Type: Definition
TO
4. The fundamental problem of economics is:
A. to establish equity between personal and business taxation
B. to establish a democratic political framework for the provision of social goods and services
C. to establish prices that accurately reflect the relative scarcities of products and resources
D. to achieve a fair distribution of money income to reduce poverty
R
E. the scarcity of productive resources relative to consumer wants
G
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants, but limited resources-that underlies the
definition of economics.
Topic: 01-02 The Economic Problem
U
Type: Definition
5. The economic problem stems from the fact that:
R
A. the production possibilities curve bows out to the right
B. resources are scarce relative to people's demand for goods and services
C. people act to maximize their own welfare
D. historically the production possibilities curve has been shifting down toward the origin
U
E. the production possibilities curve bows in to the left
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants, but limited resources-that underlies the
definition of economics.
Topic: 01-02 The Economic Problem
Type: Definition
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