TEST BANK
PRINCIPLES OF MICROECONOMICS
3RD EDITION
CHAPTER NO. 01: WELCOME TO ECONOMICS
MULTIPLE CHOICE QUESTION & ANSWERS
1. In countries like _____________ the command economy predominates.
A. China and Vietnam
B. Cuba and North Korea
C. South Africa and Kenya
D. Germany and France
Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Medium Category: Remember
2. In which of the following countries will the national government have the greatest
influence with respect to the nation's economy?
A. China
B. Cuba
C. Canada
D. Chile
Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Medium Category: Analyze
3. In a command economy, the __________ either makes most economic decisions itself
or at least strongly influences how the decisions are made.
,A. government
B. market
C. firm
D. business sector
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
4. Because of their relatively small national economies, which of the following is most
likely considered to be the most important factor for Belgium, Korea, and Canada to
take full advantage of specialization?
A. division of labour
B. international trade
C. economies of scale
D. command economy
Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Medium Category: Analyze
5. In a discussion of economics, which of the following would exert the most influence
on an individual firm's decision to hire workers?
A. wage levels
B. the macroeconomy
C. the firm's income
D. household income
Answer: B
Reference:
,Explanation:
Type: Multiple Choice Difficulty: Easy Category: Analyze
6. In a _______________________, most economic decisions about what to produce,
how to produce it, and for whom to produce it are made by buyers and sellers.
A. market-oriented economy
B. macroeconomy
C. microeconomy
D. command economy
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
7. Which of the following best denotes the reason for the existence of substantial black
markets?
A. a market-oriented economy
B. a command economy
C. government laws and rules
D. the microeconomy
Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
8. Which of the following is generally accepted as a valid criticism of the production of
useful goods and services?
A. government involvement
B. the black market
C. environmental pollution
, D. economic freedom
Answer: C
Reference:
Explanation:
Type: Multiple Choice Difficulty: Medium Category: Evaluate
9. In the first chapter of The Wealth of Nations, Smith introduces the idea of the
__________, which means the way in which the work required to produce a good or
service is divided into a number of tasks that are performed by different workers.
A. division of labor
B. interconnected economy
C. task economy
D. modern economy
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Medium Category: Analyze
10. If macroeconomics looks at the economy as a whole, it focuses on which of the
following?
A. households
B. business firms
C. unemployed people
D. the division of labor
Answer: C
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
PRINCIPLES OF MICROECONOMICS
3RD EDITION
CHAPTER NO. 01: WELCOME TO ECONOMICS
MULTIPLE CHOICE QUESTION & ANSWERS
1. In countries like _____________ the command economy predominates.
A. China and Vietnam
B. Cuba and North Korea
C. South Africa and Kenya
D. Germany and France
Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Medium Category: Remember
2. In which of the following countries will the national government have the greatest
influence with respect to the nation's economy?
A. China
B. Cuba
C. Canada
D. Chile
Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Medium Category: Analyze
3. In a command economy, the __________ either makes most economic decisions itself
or at least strongly influences how the decisions are made.
,A. government
B. market
C. firm
D. business sector
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
4. Because of their relatively small national economies, which of the following is most
likely considered to be the most important factor for Belgium, Korea, and Canada to
take full advantage of specialization?
A. division of labour
B. international trade
C. economies of scale
D. command economy
Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Medium Category: Analyze
5. In a discussion of economics, which of the following would exert the most influence
on an individual firm's decision to hire workers?
A. wage levels
B. the macroeconomy
C. the firm's income
D. household income
Answer: B
Reference:
,Explanation:
Type: Multiple Choice Difficulty: Easy Category: Analyze
6. In a _______________________, most economic decisions about what to produce,
how to produce it, and for whom to produce it are made by buyers and sellers.
A. market-oriented economy
B. macroeconomy
C. microeconomy
D. command economy
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
7. Which of the following best denotes the reason for the existence of substantial black
markets?
A. a market-oriented economy
B. a command economy
C. government laws and rules
D. the microeconomy
Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
8. Which of the following is generally accepted as a valid criticism of the production of
useful goods and services?
A. government involvement
B. the black market
C. environmental pollution
, D. economic freedom
Answer: C
Reference:
Explanation:
Type: Multiple Choice Difficulty: Medium Category: Evaluate
9. In the first chapter of The Wealth of Nations, Smith introduces the idea of the
__________, which means the way in which the work required to produce a good or
service is divided into a number of tasks that are performed by different workers.
A. division of labor
B. interconnected economy
C. task economy
D. modern economy
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Medium Category: Analyze
10. If macroeconomics looks at the economy as a whole, it focuses on which of the
following?
A. households
B. business firms
C. unemployed people
D. the division of labor
Answer: C
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
