,DOWNLOAD THE Test Bank for Economics Theory and Practice 11th Edition
Welch
Chapter: Chapter 2: Economic Decision Making and Economic Systems
Multiple Choice
1. The three basic economic decisions are:
A) what to produce, how to produce, and what prices to charge.
B) how to produce, who should produce, and what they should be paid.
C) what to produce, how to produce, and who receives what has been produced.
D) what goods and services should be consumed, what these goods and services should cost,
and how much people should earn.
Ans: C
Difficulty: Medium
Topic: Scarcity, the Basic Economic Decisions and Economic Systems
LO 2.1: Introduce the basic economic decisions that must be made in every society because of
scarcity and how those decisions are made in various economic systems.
2. The basic economic decisions are faced:
A) in every economy because of scarcity.
B) in every economy because every society has a formal government.
C) only in market economies since no decision making is allowed in planned economies.
D) only in advanced economies where enough goods and services are produced to force people
to make choices.
Ans: A
Difficulty: Medium
Topic: Scarcity, the Basic Economic Decisions and Economic Systems
LO 2.1: Introduce the basic economic decisions that must be made in every society because of
scarcity and how those decisions are made in various economic systems.
3. Which of the following is NOT one of the three basic economic decisions?
A) How goods and services should be produced.
B) To whom the goods and services should be distributed.
C) What goods and services should be produced and in what quantities.
D) When goods and services should be produced, and when their producers should be paid.
mynursytest.store
,DOWNLOAD THE Test Bank for Economics Theory and Practice 11th Edition
Welch
Ans: D
Difficulty: Medium
Topic: Scarcity, the Basic Economic Decisions and Economic Systems
LO 2.1: Introduce the basic economic decisions that must be made in every society because of
scarcity and how those decisions are made in various economic systems.
4. The basic economic decisions:
A) apply only to less-developed economies where scarcity is a real problem.
B) relate to what is to be produced and how well it satisfies consumer demand.
C) are decisions about production and distribution that must be made by every society.
D) differ in every society; that is, some societies face only one basic decision while others face
two or three.
Ans: C
Difficulty: Medium
Topic: Scarcity, the Basic Economic Decisions and Economic Systems
LO 2.1: Introduce the basic economic decisions that must be made in every society because of
scarcity and how those decisions are made in various economic systems.
5. Which of the following is NOT a basic economic decision that must be made by every
society?
A) What goods and services will be produced.
B) What goods and services consumers will need most.
C) Who will receive the goods and services that are produced.
D) What factors of production and methods will be used in producing goods and services.
Ans: B
Difficulty: Easy
Topic: Scarcity, the Basic Economic Decisions and Economic Systems
LO 2.1: Introduce the basic economic decisions that must be made in every society because of
scarcity and how those decisions are made in various economic systems.
6. The way a society is organized to make the basic economic decisions is referred to as its:
A) output strategy.
B) economic system.
C) production network.
D) social-economic structure.
Ans: B
mynursytest.store
, DOWNLOAD THE Test Bank for Economics Theory and Practice 11th Edition
Welch
Difficulty: Easy
Topic: Scarcity, the Basic Economic Decisions and Economic Systems
LO 2.1: Introduce the basic economic decisions that must be made in every society because of
scarcity and how those decisions are made in various economic systems.
7. Decisions about what goods and services will be produced, how they will be produced, and
who will get them, must be made in:
A) all economies.
B) market economies, but not in planned economies.
C) socialist economies, but not in capitalist economies.
D) economies based on individual decision making, but not in economies based on collective
decision making.
Ans: A
Difficulty: Easy
Topic: Scarcity, the Basic Economic Decisions and Economic Systems
LO 2.1: Introduce the basic economic decisions that must be made in every society because of
scarcity and how those decisions are made in various economic systems.
8. With reference to the basic economic decisions, all economies must determine:
A) what goods and services households want to purchase.
B) what methods and techniques to use to produce goods and services.
C) how taxes will be used to redistribute income among the population.
D) how much control elected officials have in deciding what goods and services to produce.
Ans: B
Difficulty: Medium
Topic: Scarcity, the Basic Economic Decisions and Economic Systems
LO 2.1: Introduce the basic economic decisions that must be made in every society because of
scarcity and how those decisions are made in various economic systems.
9. A society's economic system is defined by:
A) the degree of scarcity it faces.
B) the way in which basic economic decisions are made.
C) the forms into which its businesses are legally organized.
D) its type of government; that is, whether it has a dictatorship or a democracy.
Ans: B
Difficulty: Medium
Topic: Scarcity, the Basic Economic Decisions and Economic Systems
mynursytest.store
Welch
Chapter: Chapter 2: Economic Decision Making and Economic Systems
Multiple Choice
1. The three basic economic decisions are:
A) what to produce, how to produce, and what prices to charge.
B) how to produce, who should produce, and what they should be paid.
C) what to produce, how to produce, and who receives what has been produced.
D) what goods and services should be consumed, what these goods and services should cost,
and how much people should earn.
Ans: C
Difficulty: Medium
Topic: Scarcity, the Basic Economic Decisions and Economic Systems
LO 2.1: Introduce the basic economic decisions that must be made in every society because of
scarcity and how those decisions are made in various economic systems.
2. The basic economic decisions are faced:
A) in every economy because of scarcity.
B) in every economy because every society has a formal government.
C) only in market economies since no decision making is allowed in planned economies.
D) only in advanced economies where enough goods and services are produced to force people
to make choices.
Ans: A
Difficulty: Medium
Topic: Scarcity, the Basic Economic Decisions and Economic Systems
LO 2.1: Introduce the basic economic decisions that must be made in every society because of
scarcity and how those decisions are made in various economic systems.
3. Which of the following is NOT one of the three basic economic decisions?
A) How goods and services should be produced.
B) To whom the goods and services should be distributed.
C) What goods and services should be produced and in what quantities.
D) When goods and services should be produced, and when their producers should be paid.
mynursytest.store
,DOWNLOAD THE Test Bank for Economics Theory and Practice 11th Edition
Welch
Ans: D
Difficulty: Medium
Topic: Scarcity, the Basic Economic Decisions and Economic Systems
LO 2.1: Introduce the basic economic decisions that must be made in every society because of
scarcity and how those decisions are made in various economic systems.
4. The basic economic decisions:
A) apply only to less-developed economies where scarcity is a real problem.
B) relate to what is to be produced and how well it satisfies consumer demand.
C) are decisions about production and distribution that must be made by every society.
D) differ in every society; that is, some societies face only one basic decision while others face
two or three.
Ans: C
Difficulty: Medium
Topic: Scarcity, the Basic Economic Decisions and Economic Systems
LO 2.1: Introduce the basic economic decisions that must be made in every society because of
scarcity and how those decisions are made in various economic systems.
5. Which of the following is NOT a basic economic decision that must be made by every
society?
A) What goods and services will be produced.
B) What goods and services consumers will need most.
C) Who will receive the goods and services that are produced.
D) What factors of production and methods will be used in producing goods and services.
Ans: B
Difficulty: Easy
Topic: Scarcity, the Basic Economic Decisions and Economic Systems
LO 2.1: Introduce the basic economic decisions that must be made in every society because of
scarcity and how those decisions are made in various economic systems.
6. The way a society is organized to make the basic economic decisions is referred to as its:
A) output strategy.
B) economic system.
C) production network.
D) social-economic structure.
Ans: B
mynursytest.store
, DOWNLOAD THE Test Bank for Economics Theory and Practice 11th Edition
Welch
Difficulty: Easy
Topic: Scarcity, the Basic Economic Decisions and Economic Systems
LO 2.1: Introduce the basic economic decisions that must be made in every society because of
scarcity and how those decisions are made in various economic systems.
7. Decisions about what goods and services will be produced, how they will be produced, and
who will get them, must be made in:
A) all economies.
B) market economies, but not in planned economies.
C) socialist economies, but not in capitalist economies.
D) economies based on individual decision making, but not in economies based on collective
decision making.
Ans: A
Difficulty: Easy
Topic: Scarcity, the Basic Economic Decisions and Economic Systems
LO 2.1: Introduce the basic economic decisions that must be made in every society because of
scarcity and how those decisions are made in various economic systems.
8. With reference to the basic economic decisions, all economies must determine:
A) what goods and services households want to purchase.
B) what methods and techniques to use to produce goods and services.
C) how taxes will be used to redistribute income among the population.
D) how much control elected officials have in deciding what goods and services to produce.
Ans: B
Difficulty: Medium
Topic: Scarcity, the Basic Economic Decisions and Economic Systems
LO 2.1: Introduce the basic economic decisions that must be made in every society because of
scarcity and how those decisions are made in various economic systems.
9. A society's economic system is defined by:
A) the degree of scarcity it faces.
B) the way in which basic economic decisions are made.
C) the forms into which its businesses are legally organized.
D) its type of government; that is, whether it has a dictatorship or a democracy.
Ans: B
Difficulty: Medium
Topic: Scarcity, the Basic Economic Decisions and Economic Systems
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