Test Bank for Foundations of Economics, 9th Edition By Robin Bade, Michael Parkin

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FoundationsgofgMicroeconomics,g9eg(Bade)
gChapterg1g GettinggStarted


1.1 DefinitiongandgQuestions

1) Scarcitygexistsgbecause
A) humangwantsgexceedgthegresourcesgavailablegtogsatisfygthem.
B) somegindividualsghaveglowgincome.
C) thegcostsgofgproductiongareghigh.
D) somegpeoplegmakegbadgeconomicgdecisions.
E) peoplegtakegtoogmuchgleisuregtime
.gAnswer:g A
Topic:g Scarcity
Skill:g Levelg1:gDefinition
gSection:g Checkpointg1.1g
Status:g Old
AACSB:g Reflectivegthinking

2) Scarcity
A) isgtheginabilitygtogsatisfygallgourgwants.
B) leadsgtoghighergprices.
C) appliesgonlygtogpeopleglivinggingpoverty.
D) isgnotgsomethinggthatgaffectsgverygrichgpeople.
E) usedgtogexistgeverywheregbutghasgbeengeliminatedgingadvancedgeconomie
s.gAnswer:g A
Topic:g Scarcity
Skill:g Levelg1:gDefinition
gSection:g Checkpointg1.1g
Status:g Old
AACSB:g Reflectivegthinking

3) Scarcitygrequiresgthatgwe
A) producegefficiently.
B) learngtoglimitgourgwants.
C) havegthegmostgrapidgeconomicggrowthgpossible.
D) havegunlimitedgresources.
E) makegchoicesgaboutgwhatggoodsgandgservicesgtogproduc
e.gAnswer:g E
Topic:g Scarcity
Skill:g Levelg1:gDefinition
gSection:g Checkpointg1.1g
Status:g Old
AACSB:g Reflectivegthinking




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4) Scarcitygmeansgthat
A) whatgwegcangproducegwithgourgresourcesgisggreatergthangourgmaterialgwants.
B) resourcesgaregunlimited.
C) wantsgareggreatergthangwhatgwegcangproducegwithgourgresources.
D) governmentsgmustgmakegupgforgshortagesgingresources.
E) choicesgmadegingself-
interestgcannotgbegthegsamegasgthosegmadegingthegsocialginterest.gAnswer:g C
Topic:g Scarcity
Skill:g Levelg1:gDefinition
gSection:g Checkpointg1.1g
Status:g Old
AACSB:g Reflectivegthinking

5) Becauseghumangwantsgareginsatiablegandgunlimitedgwhilegavailablegresourcesgareglimite
d,gpeoplegaregsaidgtogfacegthegproblemgof
A) scarcity.
B) whygtogproduce.
C) macroeconomics.
D) microeconomics.
E) socialginterestgversusgself-
interest.gAnswer:g A
Topic:g Scarcity
Skill:g Levelg1:gDefinition
gSection:g Checkpointg1.1g
Status:g Old
AACSB:g Reflectivegthinking

6) WhichgofgthegfollowinggstatementsgBESTgdescribesgthegstudygofgeconomics?
gEconomicsgstudiesghow
A) togorganizegproductiongsogthatgscarcitygdoesgnotgoccur.
B) firmsgmakegprofits.
C) wegmakegchoicesgingthegfacegofgscarcity.
D) togcreategincentivesgsogthatgscarcitygdoesgnotgexist.
E) businessesgreachgdecisions
.gAnswer:g C
Topic:g Scarcity
Skill:g Levelg1:gDefinition
gSection:g Checkpointg1.1g
Status:g Old
AACSB:g Reflectivegthinking




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7) Scarcitygforcesgpeoplegto
A) choosegamonggavailablegalternatives.
B) cheatgandgsteal.
C) begunwillinggtoghelpgothers.
D) livegatgaglowgstandardgofgliving.
E) consumegasgmuchgasgtheygcangasgquicklygasgtheygca
n.gAnswer:g A
Topic:g Scarcity
Skill:g Levelg2:gUsinggdefinitionsg
Section:g Checkpointg1.1
Status:g Old
AACSB:g Reflectivegthinking

8) Scarcitygmeansgwegmust
A) consumegless.
B) producegless.
C) makegchoices.
D) earngmore.
E) workgmore.g
Answer:g CgTo
pic:g Scarcity
Skill:g Levelg1:gDefinition
gSection:g Checkpointg1.1g
Status:g Old
AACSB:g Reflectivegthinking

9) Whatgisgthegreasongthatgallgeconomicgissuesgandgproblemsgoccur?
A) Allgnationsgusegsomegformgofgmoneygtogbuygandgsellggoodsgandgservices.
B) Humansgaregalwaysgwastefulgandginefficientgingproductiongandgconsumption.
C) Powerfulggovernmentsgaregablegtogcontrolgproductiongandgconsumption.
D) Humangwantsgexceedgthegresourcesgavailablegtogsatisfygthem.
E) Peoplegseekgonlygtheirgowngself-
interest.gAnswer:g D
Topic:g Scarcity
Skill:g Levelg2:gUsinggdefinitionsg
Section:g Checkpointg1.1
Status:g Old
AACSB:g Reflectivegthinking




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10) Thegstudygofgeconomicsgisgbestgdescribedgasgagstudygof
A) thegfactorsgthatginfluencegthegstockgandgbondgmarkets.
B) capitalism.
C) thegchoicesgmadegingproducingggoodsgandgservices.
D) copinggwithgscarcity,gandgchoicesgmadegasgagresultgofgscarcitygingagsociety.
E) howgpeoplegearngagliving
.gAnswer:g D
Topic:g Definitiongofgeconomic
sgSkill:g Levelg1:gDefinitiongSe
ction:g Checkpointg1.1g Status:g
Old
AACSB:g Reflectivegthinking

11) WhichgofgthegfollowinggstatementsgBESTgdescribesgthegstudygofgeconomics?
gEconomicsgstudiesghow
A) togorganizegproductiongsogthatgscarcitygdoesgnotgoccur.
B) firmsgmakegprofits.
C) wegmakegchoicesgingthegfacegofgscarcity.
D) togcreategincentivesgsogthatgscarcitygdoesgnotgexist.
E) businessesgreachgdecisions
.gAnswer:g C
Topic:g Definitiongofgeconomic
sgSkill:g Levelg1:gDefinitiongSe
ction:g Checkpointg1.1g Status:g
Old
AACSB:g Reflectivegthinking

12) WhichgofgthegfollowinggBESTgdefinesgeconomics?
A) Economicsgteachesghowgtoglimitgourgwants.
B) Economicsgstudiesghowgtogchoosegthegbestgalternativegwhengcopinggwithgscarcity.
C) Economicsghelpsgyougearngasgmuchgmoneygasgpossible.
D) Economicsganalyzesgallgaspectsgofghumangbehaviorginggeneral.
E) Economicsgisgconcernedgwithgpricesgandgquantitiesgofggoodsgandgservices,gbothgatgt
hegindividualglevelgandgatgthegindustryglevel.
Answer:g B
Topic:g Definitiongofgeconomic
sgSkill:g Levelg1:gDefinitiongSe
ction:g Checkpointg1.1g Status:g
Old
AACSB:g Reflectivegthinking




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