TEST BANK-
Understanding Economics: A Contemporary Perspective
Author: By Mark Lovewell
9th Edition
1-1
,TABLE OF CONTENT
PART 1 WORKING WITH ECONOMICS
Chapter 1: The Economic Problem
Chapter 2: Demand And Supply
Chapter 3: Elasticity
PART 2 EFFICIENCY, EQUITY, AND ECOLOGICAL SUSTAINABILITY
Chapter 4: Costs Of Production
Chapter 5: Perfect Competition
Chapter 6: Monopoly And Imperfect Competition
Chapter 7: Economic Welfare, The Environment, And Income Distribution
PART 3 ECONOMIC STABILITY CHAPTER
8: Measures Of Economic Activity Chapter
9: Inflation And Unemployment Chapter
10: Economic Fluctuations Chapter
11: Fiscal Policy Chapter
12: Money Chapter
13: Monetary Policy
PART 4 CANADA IN THE GLOBAL ECONOMY CHAPTER
14: The Foreign Sector Chapter
15: Foreign Trade
1-2
,Chapter 01 - The Economic Problem
Chapter 01
The Economic Problem
Multiple Choice Questions
1. The Economic Problem Is Essentially One Of Deciding How To Make The Best Use Of:
A. Unlimited Resources To Satisfy Unlimited Wants
B. Limited Resources To Satisfy Unlimited Wants
C. Unlimited Resources To Satisfy Limited Wants
D. Limited Resources To Satisfy Limited Wants
E. Free Resources To Satisfy Expensive Wants
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Describe The Economic Problem-The Problem Of Having Unlimited Wants, But Limited Resources-That
Underlies TheDefinition Of Economics.
Topic: 01-02 The Economic Problem
Type: Definition
2. Economists Assume That People Customarily Behave Rationally, Meaning That People:
A. Virtually Always Weigh The Personal Benefits And Costs Of Every Available Action And
ChooseAn Action On The Basis Of Their Individual Wants
B. Act In A Rational Way When Buying And Selling Products, But Not In Other Settings
C. Act Rationally When They Buy Products, But Not When They Sell Them
D. Act Rationally When They Sell Products, But Not When They Buy Them
E. Are Unable To Act In An Irrational Way
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Describe The Economic Problem-The Problem Of Having Unlimited Wants, But Limited Resources-That
Underlies TheDefinition Of Economics.
Topic: 01-02 The Economic Problem
Type: Definition
1-3
, Chapter 01 - The Economic Problem
3. An Economist Who Says That Consumer Wants Are Inexhaustible Means That:
A. Economic Resources Are Valuable Only Because They Can Be Used To Produce
ConsumerGoods
B. Economic Resources—Natural, Capital, And Human Resources—Are Scarce
C. Consumers Wants Are Virtually Unlimited And, Therefore, Incapable Of Being Fully
Satisfied
D. The Nature Of Consumer Wants Is Highly Unpredictable
E. The Nature Of Consumer Demand Varies From Time To Time And From Country To
Country
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Describe The Economic Problem-The Problem Of Having Unlimited Wants, But Limited Resources-That
Underlies TheDefinition Of Economics.
Topic: 01-02 The Economic Problem
Type: Definition
4. The Fundamental Problem Of Economics Is:
A. To Establish Equity Between Personal And Business Taxation
B. To Establish A Democratic Political Framework For The Provision Of Social Goods And
Services
C. To Establish Prices That Accurately Reflect The Relative Scarcities Of Products And
Resources
D. To Achieve A Fair Distribution Of Money Income To Reduce Poverty
E. The Scarcity Of Productive Resources Relative To Consumer Wants
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Describe The Economic Problem-The Problem Of Having Unlimited Wants, But Limited Resources-That
Underlies TheDefinition Of Economics.
Topic: 01-02 The Economic Problem
Type: Definition
5. The Economic Problem Stems From The Fact That:
A. The Production Possibilities Curve Bows Out To The Right
B. Resources Are Scarce Relative To People's Demand For Goods And Services
C. People Act To Maximize Their Own Welfare
D. Historically The Production Possibilities Curve Has Been Shifting Down Toward The
Origin
E. The Production Possibilities Curve Bows In To The Left
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Describe The Economic Problem-The Problem Of Having Unlimited Wants, But Limited Resources-That
1-4
Understanding Economics: A Contemporary Perspective
Author: By Mark Lovewell
9th Edition
1-1
,TABLE OF CONTENT
PART 1 WORKING WITH ECONOMICS
Chapter 1: The Economic Problem
Chapter 2: Demand And Supply
Chapter 3: Elasticity
PART 2 EFFICIENCY, EQUITY, AND ECOLOGICAL SUSTAINABILITY
Chapter 4: Costs Of Production
Chapter 5: Perfect Competition
Chapter 6: Monopoly And Imperfect Competition
Chapter 7: Economic Welfare, The Environment, And Income Distribution
PART 3 ECONOMIC STABILITY CHAPTER
8: Measures Of Economic Activity Chapter
9: Inflation And Unemployment Chapter
10: Economic Fluctuations Chapter
11: Fiscal Policy Chapter
12: Money Chapter
13: Monetary Policy
PART 4 CANADA IN THE GLOBAL ECONOMY CHAPTER
14: The Foreign Sector Chapter
15: Foreign Trade
1-2
,Chapter 01 - The Economic Problem
Chapter 01
The Economic Problem
Multiple Choice Questions
1. The Economic Problem Is Essentially One Of Deciding How To Make The Best Use Of:
A. Unlimited Resources To Satisfy Unlimited Wants
B. Limited Resources To Satisfy Unlimited Wants
C. Unlimited Resources To Satisfy Limited Wants
D. Limited Resources To Satisfy Limited Wants
E. Free Resources To Satisfy Expensive Wants
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Describe The Economic Problem-The Problem Of Having Unlimited Wants, But Limited Resources-That
Underlies TheDefinition Of Economics.
Topic: 01-02 The Economic Problem
Type: Definition
2. Economists Assume That People Customarily Behave Rationally, Meaning That People:
A. Virtually Always Weigh The Personal Benefits And Costs Of Every Available Action And
ChooseAn Action On The Basis Of Their Individual Wants
B. Act In A Rational Way When Buying And Selling Products, But Not In Other Settings
C. Act Rationally When They Buy Products, But Not When They Sell Them
D. Act Rationally When They Sell Products, But Not When They Buy Them
E. Are Unable To Act In An Irrational Way
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Describe The Economic Problem-The Problem Of Having Unlimited Wants, But Limited Resources-That
Underlies TheDefinition Of Economics.
Topic: 01-02 The Economic Problem
Type: Definition
1-3
, Chapter 01 - The Economic Problem
3. An Economist Who Says That Consumer Wants Are Inexhaustible Means That:
A. Economic Resources Are Valuable Only Because They Can Be Used To Produce
ConsumerGoods
B. Economic Resources—Natural, Capital, And Human Resources—Are Scarce
C. Consumers Wants Are Virtually Unlimited And, Therefore, Incapable Of Being Fully
Satisfied
D. The Nature Of Consumer Wants Is Highly Unpredictable
E. The Nature Of Consumer Demand Varies From Time To Time And From Country To
Country
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Describe The Economic Problem-The Problem Of Having Unlimited Wants, But Limited Resources-That
Underlies TheDefinition Of Economics.
Topic: 01-02 The Economic Problem
Type: Definition
4. The Fundamental Problem Of Economics Is:
A. To Establish Equity Between Personal And Business Taxation
B. To Establish A Democratic Political Framework For The Provision Of Social Goods And
Services
C. To Establish Prices That Accurately Reflect The Relative Scarcities Of Products And
Resources
D. To Achieve A Fair Distribution Of Money Income To Reduce Poverty
E. The Scarcity Of Productive Resources Relative To Consumer Wants
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Describe The Economic Problem-The Problem Of Having Unlimited Wants, But Limited Resources-That
Underlies TheDefinition Of Economics.
Topic: 01-02 The Economic Problem
Type: Definition
5. The Economic Problem Stems From The Fact That:
A. The Production Possibilities Curve Bows Out To The Right
B. Resources Are Scarce Relative To People's Demand For Goods And Services
C. People Act To Maximize Their Own Welfare
D. Historically The Production Possibilities Curve Has Been Shifting Down Toward The
Origin
E. The Production Possibilities Curve Bows In To The Left
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Describe The Economic Problem-The Problem Of Having Unlimited Wants, But Limited Resources-That
1-4
