TEST BANK
Principles of Microeconomics, 11th Edition
by N. Gregory Mankiw
AMAZINGTIPS
All Chapters 1-23 Covered
Quiz & Answers
,Name: Class: Date:
Ch 01: MC
1. Resources are
a. scarce for households but plentiful for economies.
b. plentiful for households but scarce for economies.
c. scarce for households and scarce for economies.
d. plentiful for households and plentiful for economies.
ANSWER: c
2. Fundamentally, economics deals with
a. scarcity.
b. money.
c. poverty.
d. banking.
ANSWER: a
3. The overriding reason why households and societies face many decisions is that
a. resources are scarce.
b. goods and services are not scarce.
c. incomes fluctuate with business cycles.
d. people, by nature, tend to disagree.
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ANSWER: a
4. The phenomenon of scarcity stems from the fact that
a. most economies' production methods are not very good.
b. in most economies, wealthy people consume disproportionate quantities of goods and services.
c. governments restrict production of too many goods and services.
d. resources are limited.
ANSWER: d
5. In most societies, resources are allocated by
a. a single central planner.
b. a small number of central planners.
c. those firms that use resources to provide goods and services.
d. the combined actions of millions of households and firms.
ANSWER: d
,Name: Class: Date:
Ch 01: MC
6. Natural gas is widely used for heating and electricity, but it's considered to be a nonrenewable energy source. Which
of the following statements is correct?
a. Natural gas is an unlimited resource.
b. Natural gas is a scarce resource.
c. Natural gas is a nonscarce resource.
d. Natural gas is not a resource.
ANSWER: b
7. Economics is the study of how society manages its
a. limited wants and unlimited resources.
b. unlimited wants and unlimited resources.
c. limited wants and limited resources.
d. unlimited wants and limited resources.
ANSWER: d
8. What term refers to the idea that society has limited resources and therefore cannot produce all the goods and
services people wish to have?
a. inefficiency
b. inequality
c. scarcity
AMAZINGTIPS
d. market failure
ANSWER: c
9. The adage, "There ain't no such thing as a free lunch," means
a. even people who receive TANF benefits have to pay for food.
b. the cost of living is always increasing.
c. people face tradeoffs.
d. all costs are included in the price of a product.
ANSWER: c
10. Which of the following statements best represents the principle of the adage, "There ain't no such thing as a free
lunch"?
a. Aaliyah can attend the concert only by carpooling with siblings.
b. Raj leaves wallet at home and misses lunch.
c. Amar must repair the bike tire before riding it to school.
d. Liam must decide between going to Florida or Brazil for spring break.
ANSWER: d
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Name: Class: Date:
Ch 01: MC
11. Imagine that you are planning your day off and want to either visit a popular art exhibit or attend a live concert
happening at the same time. Unfortunately, the tickets for the concert coincide exactly with the hours the art exhibit
is open. Since you can’t be in two places at once, you have to pick just one. This situation illustrates the basic
principle that
a. people respond to incentives.
b. rational people think at the margin.
c. people face tradeoffs.
d. improvements in efficiency sometimes come at the expense of equality.
ANSWER: c
12. While pollution regulations yield the benefit of a cleaner environment and the improved health that comes with it, the
regulations come at the cost of reducing the incomes of the regulated firms' owners, workers, and customers. This
statement illustrates the principle that
a. trade can make everyone better off.
b. rational people think at the margin.
c. people face tradeoffs.
d. people respond to incentives.
ANSWER: c
13. When society requires that firms reduce pollution, there is
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a. a tradeoff because of reduced incomes to the firms' owners and workers.
b. a tradeoff only if some firms are forced to close.
c. no tradeoff, since the cost of reducing pollution falls only on the firms affected by the requirements.
d. no tradeoff, since everyone benefits from reduced pollution.
ANSWER: a
14. Efficiency means that
a. society is conserving resources in order to save them for the future.
b. society's goods and services are distributed equally among society's members.
c. society's goods and services are distributed fairly, though not necessarily equally, among society's members.
d. society is getting the most it can from its scarce resources.
ANSWER: d
15. The property of society getting the most it can from its scarce resources is called
a. efficiency.
b. equality.
c. externality.
d. productivity.
ANSWER: a
Principles of Microeconomics, 11th Edition
by N. Gregory Mankiw
AMAZINGTIPS
All Chapters 1-23 Covered
Quiz & Answers
,Name: Class: Date:
Ch 01: MC
1. Resources are
a. scarce for households but plentiful for economies.
b. plentiful for households but scarce for economies.
c. scarce for households and scarce for economies.
d. plentiful for households and plentiful for economies.
ANSWER: c
2. Fundamentally, economics deals with
a. scarcity.
b. money.
c. poverty.
d. banking.
ANSWER: a
3. The overriding reason why households and societies face many decisions is that
a. resources are scarce.
b. goods and services are not scarce.
c. incomes fluctuate with business cycles.
d. people, by nature, tend to disagree.
AMAZINGTIPS
ANSWER: a
4. The phenomenon of scarcity stems from the fact that
a. most economies' production methods are not very good.
b. in most economies, wealthy people consume disproportionate quantities of goods and services.
c. governments restrict production of too many goods and services.
d. resources are limited.
ANSWER: d
5. In most societies, resources are allocated by
a. a single central planner.
b. a small number of central planners.
c. those firms that use resources to provide goods and services.
d. the combined actions of millions of households and firms.
ANSWER: d
,Name: Class: Date:
Ch 01: MC
6. Natural gas is widely used for heating and electricity, but it's considered to be a nonrenewable energy source. Which
of the following statements is correct?
a. Natural gas is an unlimited resource.
b. Natural gas is a scarce resource.
c. Natural gas is a nonscarce resource.
d. Natural gas is not a resource.
ANSWER: b
7. Economics is the study of how society manages its
a. limited wants and unlimited resources.
b. unlimited wants and unlimited resources.
c. limited wants and limited resources.
d. unlimited wants and limited resources.
ANSWER: d
8. What term refers to the idea that society has limited resources and therefore cannot produce all the goods and
services people wish to have?
a. inefficiency
b. inequality
c. scarcity
AMAZINGTIPS
d. market failure
ANSWER: c
9. The adage, "There ain't no such thing as a free lunch," means
a. even people who receive TANF benefits have to pay for food.
b. the cost of living is always increasing.
c. people face tradeoffs.
d. all costs are included in the price of a product.
ANSWER: c
10. Which of the following statements best represents the principle of the adage, "There ain't no such thing as a free
lunch"?
a. Aaliyah can attend the concert only by carpooling with siblings.
b. Raj leaves wallet at home and misses lunch.
c. Amar must repair the bike tire before riding it to school.
d. Liam must decide between going to Florida or Brazil for spring break.
ANSWER: d
Copyright Cengage Learning. Powered by CDoogwnnelrooa.ded by: Want to earn P
$1a,g
50e02
Distribution of this document is illegal extra per year?
, classmerit.com — The Marketplace to Buy and Sell Study Materials
Name: Class: Date:
Ch 01: MC
11. Imagine that you are planning your day off and want to either visit a popular art exhibit or attend a live concert
happening at the same time. Unfortunately, the tickets for the concert coincide exactly with the hours the art exhibit
is open. Since you can’t be in two places at once, you have to pick just one. This situation illustrates the basic
principle that
a. people respond to incentives.
b. rational people think at the margin.
c. people face tradeoffs.
d. improvements in efficiency sometimes come at the expense of equality.
ANSWER: c
12. While pollution regulations yield the benefit of a cleaner environment and the improved health that comes with it, the
regulations come at the cost of reducing the incomes of the regulated firms' owners, workers, and customers. This
statement illustrates the principle that
a. trade can make everyone better off.
b. rational people think at the margin.
c. people face tradeoffs.
d. people respond to incentives.
ANSWER: c
13. When society requires that firms reduce pollution, there is
AMAZINGTIPS
a. a tradeoff because of reduced incomes to the firms' owners and workers.
b. a tradeoff only if some firms are forced to close.
c. no tradeoff, since the cost of reducing pollution falls only on the firms affected by the requirements.
d. no tradeoff, since everyone benefits from reduced pollution.
ANSWER: a
14. Efficiency means that
a. society is conserving resources in order to save them for the future.
b. society's goods and services are distributed equally among society's members.
c. society's goods and services are distributed fairly, though not necessarily equally, among society's members.
d. society is getting the most it can from its scarce resources.
ANSWER: d
15. The property of society getting the most it can from its scarce resources is called
a. efficiency.
b. equality.
c. externality.
d. productivity.
ANSWER: a
