Multiple Choice
Economics is the study of
how much people should buy and the prices they should be willing to pay.
how much people should sell and the prices they should be willing to accept.
the allocation of the world's freely available resources and who should get them.
the allocation and use of scarce resources to satisfy unlimited human wants.
Answer: D
Learning Objective: 01-01
Topic: Economics and Opportunity Cost
Blooms: Remember
AACSB: Analytical Thinking
Difficulty: 1 Easy
The one word in the definition of economics that focuses on the fact that it is
impossible to provide all of the goods and services that everyone wants is
scarcity.
resources.
study.
allocation.
Answer: A
Learning Objective: 01-01
Topic: Economics and Opportunity Cost
Blooms: Understand
AACSB: Analytical Thinking
Difficulty: 1 Easy
The one word in the definition of economics that focuses on the fact that we
have to make choices about who gets what and how much is
scarcity.
resources.
study.
allocation.
Answer: D
Learning Objective: 01-01
Topic: Economics and Opportunity Cost
1
, Blooms: Understand
AACSB: Analytical Thinking
Difficulty: 1 Easy
Economists focus on “unlimited human wants” rather than _____ to describe
our pursuit of goods and services.
needs
prices
output
physical requirements
Answer: A
Learning Objective: 01-01
Topic: Economics and Opportunity Cost
Blooms: Understand
AACSB: Analytical Thinking
Difficulty: 1 Easy
Scarcity implies that the allocation scheme chosen by society can
not make more of any one good.
typically make more of a good but at the expense of making less of another.
always make more of all goods simultaneously.
Answer: C
Learning Objective: 01-01
Topic: Economics and Opportunity Cost
Blooms: Understand
AACSB: Analytical Thinking
Difficulty: 1 Easy
Production possibilities frontier models
the choices we make in setting prices.
the choices we make in setting output alternatives.
the choices we make in setting wages.
the choices we make in setting incomes.
Answer: B
Learning Objective: 01-01
Topic: Economics and Opportunity Cost
2
, Blooms: Remember
AACSB: Analytical Thinking
Difficulty: 1 Easy
A production possibilities frontier is a simple model of
scarcity and allocation.
prices and output.
production and costs.
inputs and outputs.
Answer: A
Learning Objective: 01-01
Topic: Economics and Opportunity Cost
Blooms: Remember
AACSB: Analytical Thinking
Difficulty: 1 Easy
A simplifying assumption is typically made so as to
make a point clearer by stripping away excess detail.
make a point clearer by adding sufficient detail to get things precise.
divert attention from the real problem.
make things look better than they really are.
Answer: A
Learning Objective: 01-01
Topic: Economics and Opportunity Cost
Blooms: Understand
AACSB: Analytical Thinking
Difficulty: 1 Easy
Something is scarce as long as
there is a price that the market puts on the item.
there is no freely available infinite source of the item.
the government provides it.
the market provides it.
Answer: B
Learning Objective: 01-01
Topic: Economics and Opportunity Cost
3
, Blooms: Understand
AACSB: Analytical Thinking
Difficulty: 1 Easy
A resource
must come from the earth.
only includes physical things.
is anything that we consume directly or use to make things we will ultimately
consume.
A) and C)
Answer: C
Learning Objective: 01-01
Topic: Economics and Opportunity Cost
Blooms: Remember
AACSB: Analytical Thinking
Difficulty: 1 Easy
The underlying reason that there are unattainable points on a production
possibilities frontier diagram is that there
is government.
are always choices that have to be made.
is a scarcity of resources within a fixed level of technology.
is unemployment of resources.
Answer: C
Learning Objective: 01-01
Topic: Modeling Opportunity Cost Using the Production Possibilities
Frontier
Blooms: Apply
AACSB: Knowledge Application
Difficulty: 2 Medium
The underlying reason production possibilities frontiers are likely to be bowed
out (rather than linear) is
choices have consequences.
there is always opportunity costs.
some resources and people can be better used producing one good rather than
another.
4
Economics is the study of
how much people should buy and the prices they should be willing to pay.
how much people should sell and the prices they should be willing to accept.
the allocation of the world's freely available resources and who should get them.
the allocation and use of scarce resources to satisfy unlimited human wants.
Answer: D
Learning Objective: 01-01
Topic: Economics and Opportunity Cost
Blooms: Remember
AACSB: Analytical Thinking
Difficulty: 1 Easy
The one word in the definition of economics that focuses on the fact that it is
impossible to provide all of the goods and services that everyone wants is
scarcity.
resources.
study.
allocation.
Answer: A
Learning Objective: 01-01
Topic: Economics and Opportunity Cost
Blooms: Understand
AACSB: Analytical Thinking
Difficulty: 1 Easy
The one word in the definition of economics that focuses on the fact that we
have to make choices about who gets what and how much is
scarcity.
resources.
study.
allocation.
Answer: D
Learning Objective: 01-01
Topic: Economics and Opportunity Cost
1
, Blooms: Understand
AACSB: Analytical Thinking
Difficulty: 1 Easy
Economists focus on “unlimited human wants” rather than _____ to describe
our pursuit of goods and services.
needs
prices
output
physical requirements
Answer: A
Learning Objective: 01-01
Topic: Economics and Opportunity Cost
Blooms: Understand
AACSB: Analytical Thinking
Difficulty: 1 Easy
Scarcity implies that the allocation scheme chosen by society can
not make more of any one good.
typically make more of a good but at the expense of making less of another.
always make more of all goods simultaneously.
Answer: C
Learning Objective: 01-01
Topic: Economics and Opportunity Cost
Blooms: Understand
AACSB: Analytical Thinking
Difficulty: 1 Easy
Production possibilities frontier models
the choices we make in setting prices.
the choices we make in setting output alternatives.
the choices we make in setting wages.
the choices we make in setting incomes.
Answer: B
Learning Objective: 01-01
Topic: Economics and Opportunity Cost
2
, Blooms: Remember
AACSB: Analytical Thinking
Difficulty: 1 Easy
A production possibilities frontier is a simple model of
scarcity and allocation.
prices and output.
production and costs.
inputs and outputs.
Answer: A
Learning Objective: 01-01
Topic: Economics and Opportunity Cost
Blooms: Remember
AACSB: Analytical Thinking
Difficulty: 1 Easy
A simplifying assumption is typically made so as to
make a point clearer by stripping away excess detail.
make a point clearer by adding sufficient detail to get things precise.
divert attention from the real problem.
make things look better than they really are.
Answer: A
Learning Objective: 01-01
Topic: Economics and Opportunity Cost
Blooms: Understand
AACSB: Analytical Thinking
Difficulty: 1 Easy
Something is scarce as long as
there is a price that the market puts on the item.
there is no freely available infinite source of the item.
the government provides it.
the market provides it.
Answer: B
Learning Objective: 01-01
Topic: Economics and Opportunity Cost
3
, Blooms: Understand
AACSB: Analytical Thinking
Difficulty: 1 Easy
A resource
must come from the earth.
only includes physical things.
is anything that we consume directly or use to make things we will ultimately
consume.
A) and C)
Answer: C
Learning Objective: 01-01
Topic: Economics and Opportunity Cost
Blooms: Remember
AACSB: Analytical Thinking
Difficulty: 1 Easy
The underlying reason that there are unattainable points on a production
possibilities frontier diagram is that there
is government.
are always choices that have to be made.
is a scarcity of resources within a fixed level of technology.
is unemployment of resources.
Answer: C
Learning Objective: 01-01
Topic: Modeling Opportunity Cost Using the Production Possibilities
Frontier
Blooms: Apply
AACSB: Knowledge Application
Difficulty: 2 Medium
The underlying reason production possibilities frontiers are likely to be bowed
out (rather than linear) is
choices have consequences.
there is always opportunity costs.
some resources and people can be better used producing one good rather than
another.
4
