Test Bank for Principles of Economics 10th Edition By Gregory Mankiw (All Chapters, 100% original verified, A+ Grade)

Test Bank for Principles of Economics 10th Edition By Gregory Mankiw (All Chapters, 100% original verified, A+ Grade) 1. Scarcity means that there is less of a good or resource available than people wish to have. a. True b. False ANSWER: True 2. Economics is exclusively the study of how evenly goods and services are distributed within society. a. True b. False ANSWER: False 3. Economics is the study of how society allocates its unlimited resources. a. True b. False ANSWER: False 4. Because resources are scarce, a society cannot give all individuals the standard of living to which each aspires. a. True b. False HIGH FLYER ANSWER: True 5. Equality means distributing society’s resources in the most efficient manner. a. True b. False ANSWER: False 6. Economists study how people make decisions. a. True b. False ANSWER: True 7. With careful planning, we can usually get something that we like without having to give up something else that we like. a. True b. False ANSWER: False 8. Choosing not to attend a concert so that you can study for your exam is an example of a tradeoff. a. True b. False ANSWER: True 9. The classic tradeoff between “guns and butter” states that when a society spends more on national defense, it has less to spend on consumer goods to raise the standard of living. a. True HIGH FLYER b. False ANSWER: True ACCESS Test Bank for Principles of Microeconomics 10th Edition Mankiw Name: Class: Date: Ch 01: True False Short Answer and Essay Copyright Cengage Learning. Powered by Cognero. Page 2 10. Efficiency means everyone in the economy should receive an equal share of the goods and services produced. a. True b. False ANSWER: False 11. Equality refers to how the pie is divided, and efficiency refers to the size of the economic pie. a. True b. False ANSWER: True 12. Government policies that improve equality usually increase efficiency at the same time. a. True b. False ANSWER: False