Test Bank for Microeconomics for Life, 3rd Canadian Edition by Avi J. Cohen

Test Bank for Microeconomics for Life: Smart Choices for You, 3rd edition by Cohen


All Chapters ✅
Microeconomics for Life: Smart Choices for You, 3Ce (Cohen)
Chapter 1 What's in Economics for You?: Scarcity, Opportunity Cost, Trade,
and Models

1.1 Are You Getting Enough? Scarcity and Choice

1) Who can satisfy all their wants?
A) individuals
B) businesses
C) governments
D) high paid athletes
E) none of the above
Answer: E
Diff: 1 Type: MC
Skill: Recall
Objective: 1.1 Explain scarcity and describe why you must make smart choices among your
wants.

2) Economics is about
A) how individuals make the best possible choices.
B) how businesses make the best possible choices.
C) how governments make the best possible choices.
D) how choices interact in markets.
E) all of the above.
Answer: E
Diff: 1 Type: MC
Skill: Recall
Objective: 1.1 Explain scarcity and describe why you must make smart choices among your
wants.

3) Which of the following limits our ability to get everything we want?
A) specialization
B) socialism
C) socialization
D) time
E) none of the above
Answer: D
Diff: 1 Type: MC
Skill: Applied
Objective: 1.1 Explain scarcity and describe why you must make smart choices among your
wants.




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,4) Which of the following limits our ability to get everything we want?
A) capitalism
B) socialism
C) democracy
D) resources
E) none of the above
Answer: D
Diff: 1 Type: MC
Skill: Applied
Objective: 1.1 Explain scarcity and describe why you must make smart choices among your
wants.

5) Who needs to make smart choices?
A) high-paid athletes
B) plumbers
C) Federal Government of Canada
D) billionaires
E) all of the above
Answer: E
Diff: 1 Type: MC
Skill: Recall
Objective: 1.1 Explain scarcity and describe why you must make smart choices among your
wants.

6) Economics is the study of how individual choices interact in
A) markets.
B) schools.
C) governments.
D) businesses.
E) all of the above.
Answer: A
Diff: 2 Type: MC
Skill: Recall
Objective: 1.1 Explain scarcity and describe why you must make smart choices among your
wants.

7) The inability to satisfy all our wants is called the problem of
A) opportunity cost.
B) scarcity.
C) incentives.
D) marginal cost.
E) comparative advantage.
Answer: B
Diff: 1 Type: MC
Skill: Applied
Objective: 1.1 Explain scarcity and describe why you must make smart choices among your
wants.
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,8) A billionaire is most likely to face scarce
A) wants.
B) money.
C) time.
D) taxes.
E) none of the above.
Answer: C
Diff: 2 Type: MC
Skill: Recall
Objective: 1.1 Explain scarcity and describe why you must make smart choices among your
wants.

9) The textbook title - Economics for Life - comes from a quote by George Bernard Shaw.
Answer: TRUE
Diff: 2 Type: TF
Skill: Recall
Objective: 1.1 Explain scarcity and describe why you must make smart choices among your
wants.

10) The textbook title - Economics for Life - comes from the quote "Economy is the art of
making the most of life."
Answer: TRUE
Diff: 2 Type: TF
Skill: Recall
Objective: 1.1 Explain scarcity and describe why you must make smart choices among your
wants.

11) Scarcity is not a problem for a wealthy professional athlete like Tiger Woods.
Answer: FALSE
Diff: 1 Type: TF
Skill: Applied
Objective: 1.1 Explain scarcity and describe why you must make smart choices among your
wants.

12) Scarcity arises because we all have limited money, time, and energy.
Answer: TRUE
Diff: 1 Type: TF
Skill: Recall
Objective: 1.1 Explain scarcity and describe why you must make smart choices among your
wants.




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, 13) A non-profit organization like the National Ballet of Canada does not face a problem of
scarcity.
Answer: FALSE
Diff: 1 Type: TF
Skill: Applied
Objective: 1.1 Explain scarcity and describe why you must make smart choices among your
wants.

14) There are some people and organizations who do not face the problem of scarcity.
Answer: FALSE
Diff: 1 Type: TF
Skill: Applied
Objective: 1.1 Explain scarcity and describe why you must make smart choices among your
wants.

15) If you could live forever, have unlimited energy, and be infinitely rich, you would not face
the problem of scarcity.
Answer: TRUE
Diff: 2 Type: TF
Skill: Applied
Objective: 1.1 Explain scarcity and describe why you must make smart choices among your
wants.

16) Economics is about overcoming scarcity.
Answer: FALSE
Diff: 1 Type: TF
Skill: Applied
Objective: 1.1 Explain scarcity and describe why you must make smart choices among your
wants.

17) Economics is about overcoming our wants.
Answer: FALSE
Diff: 1 Type: TF
Skill: Applied
Objective: 1.1 Explain scarcity and describe why you must make smart choices among your
wants.

18) A government that has a budget surplus does not face the problem of scarcity.
Answer: FALSE
Diff: 1 Type: TF
Skill: Applied
Objective: 1.1 Explain scarcity and describe why you must make smart choices among your
wants.




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