Macroeconomics 9th Edition Hubbard Test Bank
Macroeconomics 9th Edition Hubbard Test Bank
3/30/2026, 8:47:13 PM 3/30/2026, 8:47:12 PM 3/30/2026, 8:47:03 PM
, Macroeconomics 9th Edition Hubbard Test Bank
Economics Digital Update (9e) – Chapter
1: Foundations and Models (Full Test
Bank)
.
1.1 Three Key Economic Ideas
1. Apple Inc. assembles iPhones in lower-wage countries. Which idea does this
reflect?
A) People are rational
B) People respond to economic incentives
C) Decisions are made at the margin
D) Firms maximize revenue
Answer: B
2. Why must choices be made in economics?
A) Unemployment
B) Scarcity
C) Greed
D) Unlimited resources
Answer: B
3. What is true about scarcity?
A) Unlimited wants exceed limited resources
B) Not a problem for the wealthy
C) Only due to overpopulation
D) Only due to inequality
Answer: A
4. The basic economic problem that always exists:
A) Scarcity
3/30/2026, 8:47:13 PM 3/30/2026, 8:47:12 PM 3/30/2026, 8:47:03 PM
, Macroeconomics 9th Edition Hubbard Test Bank
B) Efficiency
C) Inflation
D) Recession
Answer: A
5. Economics is the study of:
A) Making money in stocks
B) Making money in markets
C) Choices under scarcity
D) Supply and demand only
Answer: C
6. An economic model is:
A) A market
B) A trade-off
C) A variable
D) A simplified representation
Answer: D
Markets & Behavior
7. Where do buyers and sellers interact?
A) Government-controlled areas
B) Any system bringing buyers and sellers together
C) Physical marketplaces only
D) Tax-monitored locations
Answer: B
8. A group of buyers and sellers is called a:
A) Collective
B) Cooperative
C) Market
D) Trade-off
Answer: C
3/30/2026, 8:47:13 PM 3/30/2026, 8:47:12 PM 3/30/2026, 8:47:03 PM
, Macroeconomics 9th Edition Hubbard Test Bank
9. Economists assume individuals:
A) Are unpredictable
B) Never help others
C) Value fairness most
D) Are rational and respond to incentives
Answer: D
10. Rational behavior is useful because:
A) People are always rational
B) It explains choices even if imperfect
C) People are rarely rational
D) Irrational people don’t choose
Answer: B
11. Rational people do all EXCEPT:
A) Use information
B) Harm themselves for others
C) Weigh costs and benefits
D) Respond to incentives
Answer: B
12. Economics assumes behavior is:
A) Equitable
B) Rational
C) Emotional
D) Selfish
Answer: B
Incentives
13. Which show response to incentives?
a. Buying cheaper gas
b. Banks avoiding costly security
3/30/2026, 8:47:13 PM 3/30/2026, 8:47:12 PM 3/30/2026, 8:47:03 PM
Macroeconomics 9th Edition Hubbard Test Bank
3/30/2026, 8:47:13 PM 3/30/2026, 8:47:12 PM 3/30/2026, 8:47:03 PM
, Macroeconomics 9th Edition Hubbard Test Bank
Economics Digital Update (9e) – Chapter
1: Foundations and Models (Full Test
Bank)
.
1.1 Three Key Economic Ideas
1. Apple Inc. assembles iPhones in lower-wage countries. Which idea does this
reflect?
A) People are rational
B) People respond to economic incentives
C) Decisions are made at the margin
D) Firms maximize revenue
Answer: B
2. Why must choices be made in economics?
A) Unemployment
B) Scarcity
C) Greed
D) Unlimited resources
Answer: B
3. What is true about scarcity?
A) Unlimited wants exceed limited resources
B) Not a problem for the wealthy
C) Only due to overpopulation
D) Only due to inequality
Answer: A
4. The basic economic problem that always exists:
A) Scarcity
3/30/2026, 8:47:13 PM 3/30/2026, 8:47:12 PM 3/30/2026, 8:47:03 PM
, Macroeconomics 9th Edition Hubbard Test Bank
B) Efficiency
C) Inflation
D) Recession
Answer: A
5. Economics is the study of:
A) Making money in stocks
B) Making money in markets
C) Choices under scarcity
D) Supply and demand only
Answer: C
6. An economic model is:
A) A market
B) A trade-off
C) A variable
D) A simplified representation
Answer: D
Markets & Behavior
7. Where do buyers and sellers interact?
A) Government-controlled areas
B) Any system bringing buyers and sellers together
C) Physical marketplaces only
D) Tax-monitored locations
Answer: B
8. A group of buyers and sellers is called a:
A) Collective
B) Cooperative
C) Market
D) Trade-off
Answer: C
3/30/2026, 8:47:13 PM 3/30/2026, 8:47:12 PM 3/30/2026, 8:47:03 PM
, Macroeconomics 9th Edition Hubbard Test Bank
9. Economists assume individuals:
A) Are unpredictable
B) Never help others
C) Value fairness most
D) Are rational and respond to incentives
Answer: D
10. Rational behavior is useful because:
A) People are always rational
B) It explains choices even if imperfect
C) People are rarely rational
D) Irrational people don’t choose
Answer: B
11. Rational people do all EXCEPT:
A) Use information
B) Harm themselves for others
C) Weigh costs and benefits
D) Respond to incentives
Answer: B
12. Economics assumes behavior is:
A) Equitable
B) Rational
C) Emotional
D) Selfish
Answer: B
Incentives
13. Which show response to incentives?
a. Buying cheaper gas
b. Banks avoiding costly security
3/30/2026, 8:47:13 PM 3/30/2026, 8:47:12 PM 3/30/2026, 8:47:03 PM
