Macroeconomics for Life: Smart Choices for All – 3rd Canadian Edition | Cohen & Wolla | Comprehensive Test Bank

TEST BANK
MACROECONOMICS FOR LIFE: SMART CHOICES FOR ALL
3RD CANADIAN EDITION
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.


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.


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.