Test Bank, Quizzes: Brief Principles of Macroeconomics,Mankiw, - 10e - (2025 update)

Test Bank -
Question 1
Resources are
Answer Choices:
A. scarce for households but plentiful for economies.
B. plentiful for households but scarce for economies.
C. scarce for households and scarce for economies. ★ CORRECT ANSWER ★
D. plentiful for households and plentiful for economies.
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Question 2
Fundamentally, economics deals with
Answer Choices:
A. scarcity. ★ CORRECT ANSWER ★
B. money.
C. poverty.
D. banking.
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Question 3
The overriding reason why households and societies face many decisions is that
Answer Choices:
A. resources are scarce. ★ CORRECT ANSWER ★
B. goods and services are not scarce.

,C. incomes fluctuate with business cycles.
D. people, by nature, tend to disagree.
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Question 4
The phenomenon of scarcity stems from the fact that
Answer Choices:
A. most economies' production methods are not very good.
B. in most economies, wealthy people consume disproportionate quantities of goods and ser-
vices.
C. governments restrict production of too many goods and services.
D. resources are limited. ★ CORRECT ANSWER ★
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Question 5
In most societies, resources are allocated by
Answer Choices:
A. a single central planner.
B. a small number of central planners.
C. those firms that use resources to provide goods and services.
D. the combined actions of millions of households and firms. ★ CORRECT ANSWER ★
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Question 6
Coal is considered to be a nonrenewable energy source. Which of the following statements is
correct?

,Answer Choices:
A. Coal is an unlimited resource.
B. Coal is a scarce resource. ★ CORRECT ANSWER ★
C. Coal is a nonscarce resource.
D. Coal is not a resource.
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Question 7
Economics is the study of how society manages its
Answer Choices:
A. limited wants and unlimited resources.
B. unlimited wants and unlimited resources.
C. limited wants and limited resources.
D. unlimited wants and limited resources. ★ CORRECT ANSWER ★
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Question 8
What term refers to the idea that society has limited resources and therefore cannot produce all
the goods and services people wish to have?
Answer Choices:
A. inefficiency
B. inequality
C. scarcity ★ CORRECT ANSWER ★
D. market failure
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, Question 9
The adage, "There ain't no such thing as a free lunch," means
Answer Choices:
A. even people who receive TANF benefits have to pay for food.
B. the cost of living is always increasing.
C. people face tradeoffs. ★ CORRECT ANSWER ★
D. all costs are included in the price of a product.
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Question 10
Which of the following statements best represents the principle of the adage, "There ain't no such
thing as a free lunch"?
Answer Choices:
A. Diego can attend the concert only by carpooling with siblings.
B. Justin leaves wallet at home and misses lunch.
C. Zehra must repair the bike tire before riding it to school.
D. Dani must decide between going to Florida or Brazil for spring break. ★ CORRECT
ANSWER ★
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Question 11
Suppose that you plan your activities for a hot summer day. You would like to go to the local
swimming pool and see the latest blockbuster movie. However, the only available ticket is for
the same time that the pool is open. So you can only choose one activity. This illustrates the ba-
sic principle that
Answer Choices:
A. people respond to incentives.