, Principles of Economics v9.0
Chapter 1: The Central Idea
Multiple Choice
1. Economics is the study of how people deal with
a. unlimited resources.
b. too much money.
c. scarcity.
d. limited human wants.
e. a lack of choices.
c; Basic
OBJ: factual
SEC: 0. The Central Idea
TOP: Scarcity
Bloom's: Knowledge
2. The concept of scarcity refers to
a. a situation in which an item is very expensive.
b. a situation in which an item is available only in very small quantities.
c. a situation in which a resource is nonrenewable.
d. a situation in which people face a shortage in a particular market.
e. a situation in which the available resources are not enough to satisfy the wants of the
people.
e; Moderate
OBJ: factual
SEC: 0. The Central Idea
TOP: Scarcity
Bloom's: Knowledge
3. Scarcity is a problem
a. only for poor countries.
b. only for economies under complete government control.
c. faced by all economies.
d. that can be eliminated as the economy grows.
e. not faced by free market economies.
c; Moderate
OBJ: factual
SEC: 0. The Central Idea
TOP: Scarcity
Bloom's: Knowledge
4. The basic economic problem is
a. a lack of money.
b. a lack of jobs.
, c. poverty.
d. scarcity.
e. a rising standard of living.
d; Basic
OBJ: factual
SEC: 0. The Central Idea
TOP: Scarcity
Bloom's: Knowledge
5. Who faces the problem of scarcity?
a. Only the rich
b. Only the poor
c. Only people living next to wealthy people
d. Everyone
e. Only people running a business
d; Moderate
OBJ: factual
SEC: 0. The Central Idea
TOP: Scarcity
Bloom's: Knowledge
6. A resource is not scarce if
a. there is more of it than people want.
b. it can be found in any store.
c. people have enough money to pay for it.
d. it has a low opportunity cost.
e. its supply exceeds its demand.
a; Moderate
OBJ: factual
SEC: 0. The Central Idea
TOP: Scarcity
Bloom's: Knowledge
7. If a resource is always available when needed, then it
a. will be more expensive than other resources.
b. is not scarce.
c. has a high opportunity cost.
d. it must be valuable.
e. is scarce.
b; Basic
OBJ: factual
SEC: 0. The Central Idea
TOP: Scarcity
Bloom's: Knowledge
, 8. The existence of scarcity implies that
a. economic interaction is limited.
b. people are not able to use all the available resources.
c. people must make a choice.
d. people will always be poor.
e. rich people are better off than poor people.
c; Moderate
OBJ: conceptual
SEC: 0. The Central Idea
TOP: Scarcity
Bloom's: Analysis | AACSB: Analytic
9. Economics is a study of
a. choices and interactions among people when resources are scarce.
b. how to eliminate scarcity.
c. how to make choices and interact in order to avoid scarcity.
d. how to avoid scarcity by making choices.
e. how to make money in stock markets.
a; Moderate
OBJ: factual
SEC: 0. The Central Idea
TOP: Economics
Bloom's: Knowledge
10. Economics deals with how
a. individuals make decisions to use scarce resources in order to satisfy their unlimited
wants.
b. to run a business successfully.
c. individuals become rich.
d. society can eliminate scarcity.
e. society creates more resources in order to raise its standard of living.
a; Moderate
OBJ: factual
SEC: 0. The Central Idea
TOP: Economics
Bloom's: Knowledge
11. From an economic perspective, people make decisions because of
a. social custom.
b. genetics.
c. scarcity.
d. their own habit.
e. religion.
c; Basic
Chapter 1: The Central Idea
Multiple Choice
1. Economics is the study of how people deal with
a. unlimited resources.
b. too much money.
c. scarcity.
d. limited human wants.
e. a lack of choices.
c; Basic
OBJ: factual
SEC: 0. The Central Idea
TOP: Scarcity
Bloom's: Knowledge
2. The concept of scarcity refers to
a. a situation in which an item is very expensive.
b. a situation in which an item is available only in very small quantities.
c. a situation in which a resource is nonrenewable.
d. a situation in which people face a shortage in a particular market.
e. a situation in which the available resources are not enough to satisfy the wants of the
people.
e; Moderate
OBJ: factual
SEC: 0. The Central Idea
TOP: Scarcity
Bloom's: Knowledge
3. Scarcity is a problem
a. only for poor countries.
b. only for economies under complete government control.
c. faced by all economies.
d. that can be eliminated as the economy grows.
e. not faced by free market economies.
c; Moderate
OBJ: factual
SEC: 0. The Central Idea
TOP: Scarcity
Bloom's: Knowledge
4. The basic economic problem is
a. a lack of money.
b. a lack of jobs.
, c. poverty.
d. scarcity.
e. a rising standard of living.
d; Basic
OBJ: factual
SEC: 0. The Central Idea
TOP: Scarcity
Bloom's: Knowledge
5. Who faces the problem of scarcity?
a. Only the rich
b. Only the poor
c. Only people living next to wealthy people
d. Everyone
e. Only people running a business
d; Moderate
OBJ: factual
SEC: 0. The Central Idea
TOP: Scarcity
Bloom's: Knowledge
6. A resource is not scarce if
a. there is more of it than people want.
b. it can be found in any store.
c. people have enough money to pay for it.
d. it has a low opportunity cost.
e. its supply exceeds its demand.
a; Moderate
OBJ: factual
SEC: 0. The Central Idea
TOP: Scarcity
Bloom's: Knowledge
7. If a resource is always available when needed, then it
a. will be more expensive than other resources.
b. is not scarce.
c. has a high opportunity cost.
d. it must be valuable.
e. is scarce.
b; Basic
OBJ: factual
SEC: 0. The Central Idea
TOP: Scarcity
Bloom's: Knowledge
, 8. The existence of scarcity implies that
a. economic interaction is limited.
b. people are not able to use all the available resources.
c. people must make a choice.
d. people will always be poor.
e. rich people are better off than poor people.
c; Moderate
OBJ: conceptual
SEC: 0. The Central Idea
TOP: Scarcity
Bloom's: Analysis | AACSB: Analytic
9. Economics is a study of
a. choices and interactions among people when resources are scarce.
b. how to eliminate scarcity.
c. how to make choices and interact in order to avoid scarcity.
d. how to avoid scarcity by making choices.
e. how to make money in stock markets.
a; Moderate
OBJ: factual
SEC: 0. The Central Idea
TOP: Economics
Bloom's: Knowledge
10. Economics deals with how
a. individuals make decisions to use scarce resources in order to satisfy their unlimited
wants.
b. to run a business successfully.
c. individuals become rich.
d. society can eliminate scarcity.
e. society creates more resources in order to raise its standard of living.
a; Moderate
OBJ: factual
SEC: 0. The Central Idea
TOP: Economics
Bloom's: Knowledge
11. From an economic perspective, people make decisions because of
a. social custom.
b. genetics.
c. scarcity.
d. their own habit.
e. religion.
c; Basic
