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Economics Today, 20e (Miller)
Chapter 1 The Nature of Economics
M
1.1 The Power of Economic Analysis
All Chapters Included
1) The economic way of thinking will help you
A) make decisions in financing your home.
PR
B) analyze solutions to economic problems.
C) make better decisions concerning your education. All Answers Included
D) all of these
Answer: D
Diff: 1
Topic: 1.1 The Power of Economic Analysis
ES
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
2) Economic analysis is used
A) only by instructors and students in economics to understand the world.
SI
B) only by business people to raise profits.
C) only by policy makers to make policy decisions.
D) in decision making.
Answer: D
Diff: 1
VE
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
3) Economic analysis is a tool that
G
A) aids decision making.
B) helps us understand why people make mistakes.
C) helps us forgive selfish people.
R
D) makes everyone rich.
Answer: A
Diff: 1
Topic: 1.1 The Power of Economic Analysis
AD
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
ES
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4) Economics is best defined as the
A) study of how people make choices to satisfy their wants.
B) study of individual self-interests.
M
C) study of why people do not react to incentives.
D) process by which goods are sold in free markets.
Answer: A
Diff: 1
PR
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
5) Economics can be described as the study of how people use resources to satisfy
ES
wants.
A) unlimited; unlimited
B) unlimited; limited
C) limited; unlimited
D) limited; limited
Answer: C
SI
Diff: 1
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
VE
6) Which statement most accurately describes economics?
A) Economics is the study of how people make money.
B) Economics is the study of how people make choices to satisfy their wants.
C) Economics is the study of social values a society should choose.
D) Economics is the study of how to eliminate scarcity.
G
Answer: B
Diff: 1
Topic: 1.1 The Power of Economic Analysis
R
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
AD
ES
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7) In economic analysis, people's resources are
A) limited and their wants are unlimited.
B) unlimited and their wants are also unlimited.
M
C) limited and their wants are also limited.
D) unlimited and their wants are limited.
Answer: A
Diff: 1
PR
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
8) In economics, items that are used to produce goods and services are known as
ES
A) wants.
B) needs.
C) outputs.
D) resources.
Answer: D
Diff: 1
SI
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
VE
9) In economics, all the items that people would consume if they had unlimited income are
known as
A) wants.
B) aggregates.
C) outputs.
D) needs.
G
Answer: A
Diff: 1
Topic: 1.1 The Power of Economic Analysis
R
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
AD
ES
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10) In economics, are limited but are unlimited.
A) wants; resources
B) resources; wants
M
C) money; ideas
D) ideas; money
Answer: B
Diff: 1
PR
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
11) Economics is the study of how
ES
A) people become selfish.
B) preferences are determined.
C) psychology influences preferences.
D) people make choices.
Answer: D
Diff: 1
SI
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
VE
12) A fundamental aspect of economics is to
A) ensure that every firm makes a profit.
B) analyze how choices are made.
C) satisfy all our wants.
D) make sure that we always have sufficient resources.
Answer: B
G
Diff: 1
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
R
think like an economist
AACSB: Analytical thinking
13) Economics is the study of
AD
A) how to get rich.
B) how people allocate their limited resources to satisfy their unlimited wants.
C) how people spend their income.
D) why people want certain goods and services rather than other goods and services.
Answer: B
Diff: 1
ES
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
ijhgfds
Economics Today, 20e (Miller)
Chapter 1 The Nature of Economics
M
1.1 The Power of Economic Analysis
All Chapters Included
1) The economic way of thinking will help you
A) make decisions in financing your home.
PR
B) analyze solutions to economic problems.
C) make better decisions concerning your education. All Answers Included
D) all of these
Answer: D
Diff: 1
Topic: 1.1 The Power of Economic Analysis
ES
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
2) Economic analysis is used
A) only by instructors and students in economics to understand the world.
SI
B) only by business people to raise profits.
C) only by policy makers to make policy decisions.
D) in decision making.
Answer: D
Diff: 1
VE
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
3) Economic analysis is a tool that
G
A) aids decision making.
B) helps us understand why people make mistakes.
C) helps us forgive selfish people.
R
D) makes everyone rich.
Answer: A
Diff: 1
Topic: 1.1 The Power of Economic Analysis
AD
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
ES
ijhgfds
, kjhgfds
4) Economics is best defined as the
A) study of how people make choices to satisfy their wants.
B) study of individual self-interests.
M
C) study of why people do not react to incentives.
D) process by which goods are sold in free markets.
Answer: A
Diff: 1
PR
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
5) Economics can be described as the study of how people use resources to satisfy
ES
wants.
A) unlimited; unlimited
B) unlimited; limited
C) limited; unlimited
D) limited; limited
Answer: C
SI
Diff: 1
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
VE
6) Which statement most accurately describes economics?
A) Economics is the study of how people make money.
B) Economics is the study of how people make choices to satisfy their wants.
C) Economics is the study of social values a society should choose.
D) Economics is the study of how to eliminate scarcity.
G
Answer: B
Diff: 1
Topic: 1.1 The Power of Economic Analysis
R
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
AD
ES
ijhgfds
, kjhgfds
7) In economic analysis, people's resources are
A) limited and their wants are unlimited.
B) unlimited and their wants are also unlimited.
M
C) limited and their wants are also limited.
D) unlimited and their wants are limited.
Answer: A
Diff: 1
PR
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
8) In economics, items that are used to produce goods and services are known as
ES
A) wants.
B) needs.
C) outputs.
D) resources.
Answer: D
Diff: 1
SI
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
VE
9) In economics, all the items that people would consume if they had unlimited income are
known as
A) wants.
B) aggregates.
C) outputs.
D) needs.
G
Answer: A
Diff: 1
Topic: 1.1 The Power of Economic Analysis
R
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
AD
ES
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, kjhgfds
10) In economics, are limited but are unlimited.
A) wants; resources
B) resources; wants
M
C) money; ideas
D) ideas; money
Answer: B
Diff: 1
PR
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
11) Economics is the study of how
ES
A) people become selfish.
B) preferences are determined.
C) psychology influences preferences.
D) people make choices.
Answer: D
Diff: 1
SI
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
VE
12) A fundamental aspect of economics is to
A) ensure that every firm makes a profit.
B) analyze how choices are made.
C) satisfy all our wants.
D) make sure that we always have sufficient resources.
Answer: B
G
Diff: 1
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
R
think like an economist
AACSB: Analytical thinking
13) Economics is the study of
AD
A) how to get rich.
B) how people allocate their limited resources to satisfy their unlimited wants.
C) how people spend their income.
D) why people want certain goods and services rather than other goods and services.
Answer: B
Diff: 1
ES
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
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