TEST BANK FOR ECONOMICS PRIV
ATE AND PUBLIC CHOICE 17TH EDI
,DOWNLOAD cTHE cTest cBank cfor cEconomics cPrivate cand cPublic cChoice
c17th cEdition cGwartney
Name: Class: Date:
Ch c01: cMC
1. Adam cSmith cbelieved cthat cif cpeople cwere cfree cto cpursue ctheir cown cinterests,
a. less cwould cbe cproduced cthan cif caltruism cwere cthe cguiding cprinciple.
b. the cpublic cinterest cwould cbe cserved cquite cwell.
c. they cwould cgenerally capply ctheir ctalents cto cunproductive cactivities cthat cwould cgenerate clittle cvalue cto csociety.
d. they cwould chave clittle cincentive cto cundertake cproductive cactivities.
ANSWER: c b
2. Modern ceconomics cas ca cfield cof cstudy cis cusually cthought cto chave cbegun cwith
a. Adam cSmith cand cthe cwriting cof cThe cWealth cof cNations.
b. David cRicardo cand cthe cwriting cof cThe cPrinciples cof cPolitical cEconomy cand cTaxation.
c. Aristotle cand cthe cwriting cof cPolitics cand cEthics.
d. John cMaynard cKeynes cand cthe cwriting cof cThe cGeneral cTheory cof cEmployment, cInterest cand
cMoney. cANSWER: c a
3. Which cof cthe cfollowing cwas ca ckey cbelief cof cAdam cSmith?
a. he cfelt cthat chuman cgoodness cwould cprovide cadequate cgoods cand cservices cto ceveryone.
b. he cstressed cthat climited cexchange cand ccommand ceconomies cwould cprevent cthe cexploitation cof cthe cpoor.
c. he cbelieved cthat cindividuals cpursuing ctheir cown cinterests cwould cdirect ceconomic cactivity cin
cthe cmost cadvantageous cway.
d. he clectured cabout cthe cimportance cof cgold cand csilver cin cproviding ca cstable cmonetary csystem.
ANSWER: c c
4. According cto cAdam cSmith, cindividual cself-interest
a. is ca cpowerful cforce cfor ceconomic cprogress cwhen cindividuals care cwisely cdirected cby ca
cstrong ccentral cgovernment.
b. is ca cpowerful cforce cfor ceconomic cprogress cwhen cit cis cdirected cby ccompetitive cmarkets.
c. is ca cmajor cfactor cin cretarding cthe ceconomic cprogress cof chumankind.
d. could cbe ceither ca cpositive cor cnegative cforce cfor ceconomic cprogress, cdepending con cthe cmoral
cinfluences cof cpolitical cleaders.
ANSWER: c b
5. The cbasic cingredients cin cany ceconomic cdecision care
a. scarcity cand cchoice.
b. surpluses cand cshortages.
c. market cprices cand cthe cuse cof cefficient cproduction cmethods.
d. needs cand cwants.
ANSWER: c a
6. Economic cchoice cand ccompetitive cbehavior care cthe cresult cof
a. poverty.
b. public cownership cof cresources.
c. scarcity.
d. private cownership cof cresources.
ANSWER: c c
Copyright cCengage cLearning. cPowered cby Page c1
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,DOWNLOAD cTHE cTest cBank cfor cEconomics cPrivate cand cPublic cChoice
c17th cEdition cGwartney
Name: Class: Date:
Ch c01: cMC
7. For cthe ctypical cstudent, ctaking can cintroductory ccourse cin ceconomics cshould
a. turn cthe cstudent cinto can ceconomist.
b. teach cthe cstudent csolutions cto cmost csocial cproblems.
c. teach cthe cstudent chow cto canswer ccomplex csocial cquestions.
d. help cthe cstudent clearn cto crationally canalyze csocial cproblems.
ANSWER: c d
8. When ca csociety ccannot cproduce call cthe cgoods cand cservices cpeople cwish cto chave, cit cis csaid cthat cthe
ceconomy cis cexperiencing
a. scarcity.
b. shortages.
c. inefficiencies.
d. inequities.
ANSWER: c a
9. Which cof cthe cfollowing cis cthe cbest cdefinition cof ceconomics?
a. An cinvestigation cof cthe cquantities cand cprices cof cthe cvarious cgoods cproduced cby cthe cnations cof cthe cworld.
b. An canalysis cof chow cindividuals cand csocieties cdeal cwith cthe cproblem cof cscarcity.
c. An cexamination cof cthe crole cthat cmoney cplays cin cthe ceconomy.
d. A cstudy cof chow cgoods cand cservices care cdistributed cthroughout cthe cworld.
ANSWER: c b
10. Economics cis cprimarily cthe cstudy cof
a. how cto cmake cmoney cin cthe cstock cmarket.
b. how cto coperate ca cbusiness csuccessfully.
c. the callocation cof cscarce cresources cin can ceffort cto csatisfy cwants cthat care cvirtually cunlimited.
d. the cmethods cbusiness cfirms cuse cto creduce ctheir ccosts cof cproduction.
ANSWER: c c
11. Some cindividuals cor cfamilies ccan cbecome ccompletely csaturated cwith ca cservice csuch cas ctelevision. cThis csuggests
cthat
a. a chighly cproductive ceconomy cmay csomeday cbe cable cto csatisfy call chuman cdesires
b. desires cfor ca csingle ccommodity ccan cbe csatisfied cbut cthen cthe cfocus cwill cswitch cto cother cgoods cand cservices
c. resources care cnot ctruly cfixed cin csupply cas cwe cgenerally cassume
d. scarcity cdoes cnot cexist
ANSWER: c b
12. In ceconomics, cthe cterm c"scarcity" crefers cto cthe cfact cthat
a. everything creally cworthwhile ccosts cmoney.
b. even cin cwealthy ccountries clike cthe cUnited cStates, csome cpeople care cpoor.
c. no csociety ccan cproduce cenough cto csatisfy cfully cthe cdesires cof cpeople cfor cgoods cand cservices.
d. sometimes cshortages cof ca cgood carise cwhen cits cprice cis cset cbelow cthe cmarket cequilibrium.
ANSWER: c c
Copyright cCengage cLearning. cPowered cby Page c2
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, DOWNLOAD cTHE cTest cBank cfor cEconomics cPrivate cand cPublic cChoice
c17th cEdition cGwartney
Name: Class: Date:
Ch c01: cMC
13. When ceconomists csay ca cgood cis cscarce, cthey cmean
a. there care conly ca climited cnumber cof cconsumers cwho cwould cbe cinterested cin cpurchasing cthe cgood.
b. the chuman cdesire cfor cthe cgood cexceeds cthe camount cfreely cavailable cfrom cnature.
c. most cpeople cin cpoorer ccountries cdo cnot chave cenough cof cthe cgood.
d. the cproduction cof cthe cgood chas cno copportunity ccost cfor csociety.
ANSWER: c b
14. When ceconomists csay cgoods care cscarce, cthey cmean
a. consumers care ctoo cpoor cto cafford cthe cgoods cand cservices cavailable.
b. consumers care cunwilling cto cbuy cgoods cunless cthey chave cvery clow cprices.
c. goods care cgenerally cfreely cavailable cfrom cnature cin cmost ccountries.
d. the cdesire cfor cgoods cand cservices cexceeds cour cability cto cproduce cthem cwith cthe climited cresources cavailable.
ANSWER: c d
15. If cscarcity cwere celiminated,
a. individuals cwould chave cto cmake ctrade-offs.
b. individuals cwould chave cto cmake cmany cchoices.
c. individuals cwould chave climited cresources.
d. all cgoods cwould cbe cfree.
ANSWER: c d
16. If ca cgood cis cscarce,
a. there cwill cbe cshortages cof cit cif cthe cgood cis crationed cby cmarkets.
b. the cgood cwill chave ca cprice cin ca cmarket csetting.
c. there cwill cbe cenough cof cthe cgood cfreely cavailable cfrom cnature cto csatisfy cthe chuman cdesire cfor cit.
d. all cgoods care cfree.
ANSWER: c b
17. Criteria cfor crationing cgoods cand cresources cmust cbe cestablished cbecause cof
a. the claw cof ccomparative cadvantage.
b. the cuse cof ccapitalism cas ca cform cof ceconomic corganization.
c. the cinability cof cpoliticians cto cdevelop cefficient cforms cof ceconomic corganization.
d. scarcity cimposed cby cnature.
ANSWER: c d
18. Every ceconomy cmust cration cgoods cin csome cway cbecause cof
a. overpopulation.
b. poorly-performing cmarkets.
c. the cincome cgap cbetween crich cand cpoor.
d. scarcity.
ANSWER: c d
19. Which cof cthe cfollowing cis ctrue cof cresources?
a. Physical cresources creflect cthe cskills cand cproductive cknowledge cof chuman cbeings.
Copyright cCengage cLearning. cPowered cby Page c3
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ATE AND PUBLIC CHOICE 17TH EDI
,DOWNLOAD cTHE cTest cBank cfor cEconomics cPrivate cand cPublic cChoice
c17th cEdition cGwartney
Name: Class: Date:
Ch c01: cMC
1. Adam cSmith cbelieved cthat cif cpeople cwere cfree cto cpursue ctheir cown cinterests,
a. less cwould cbe cproduced cthan cif caltruism cwere cthe cguiding cprinciple.
b. the cpublic cinterest cwould cbe cserved cquite cwell.
c. they cwould cgenerally capply ctheir ctalents cto cunproductive cactivities cthat cwould cgenerate clittle cvalue cto csociety.
d. they cwould chave clittle cincentive cto cundertake cproductive cactivities.
ANSWER: c b
2. Modern ceconomics cas ca cfield cof cstudy cis cusually cthought cto chave cbegun cwith
a. Adam cSmith cand cthe cwriting cof cThe cWealth cof cNations.
b. David cRicardo cand cthe cwriting cof cThe cPrinciples cof cPolitical cEconomy cand cTaxation.
c. Aristotle cand cthe cwriting cof cPolitics cand cEthics.
d. John cMaynard cKeynes cand cthe cwriting cof cThe cGeneral cTheory cof cEmployment, cInterest cand
cMoney. cANSWER: c a
3. Which cof cthe cfollowing cwas ca ckey cbelief cof cAdam cSmith?
a. he cfelt cthat chuman cgoodness cwould cprovide cadequate cgoods cand cservices cto ceveryone.
b. he cstressed cthat climited cexchange cand ccommand ceconomies cwould cprevent cthe cexploitation cof cthe cpoor.
c. he cbelieved cthat cindividuals cpursuing ctheir cown cinterests cwould cdirect ceconomic cactivity cin
cthe cmost cadvantageous cway.
d. he clectured cabout cthe cimportance cof cgold cand csilver cin cproviding ca cstable cmonetary csystem.
ANSWER: c c
4. According cto cAdam cSmith, cindividual cself-interest
a. is ca cpowerful cforce cfor ceconomic cprogress cwhen cindividuals care cwisely cdirected cby ca
cstrong ccentral cgovernment.
b. is ca cpowerful cforce cfor ceconomic cprogress cwhen cit cis cdirected cby ccompetitive cmarkets.
c. is ca cmajor cfactor cin cretarding cthe ceconomic cprogress cof chumankind.
d. could cbe ceither ca cpositive cor cnegative cforce cfor ceconomic cprogress, cdepending con cthe cmoral
cinfluences cof cpolitical cleaders.
ANSWER: c b
5. The cbasic cingredients cin cany ceconomic cdecision care
a. scarcity cand cchoice.
b. surpluses cand cshortages.
c. market cprices cand cthe cuse cof cefficient cproduction cmethods.
d. needs cand cwants.
ANSWER: c a
6. Economic cchoice cand ccompetitive cbehavior care cthe cresult cof
a. poverty.
b. public cownership cof cresources.
c. scarcity.
d. private cownership cof cresources.
ANSWER: c c
Copyright cCengage cLearning. cPowered cby Page c1
cCognero.
mynursytest.store
,DOWNLOAD cTHE cTest cBank cfor cEconomics cPrivate cand cPublic cChoice
c17th cEdition cGwartney
Name: Class: Date:
Ch c01: cMC
7. For cthe ctypical cstudent, ctaking can cintroductory ccourse cin ceconomics cshould
a. turn cthe cstudent cinto can ceconomist.
b. teach cthe cstudent csolutions cto cmost csocial cproblems.
c. teach cthe cstudent chow cto canswer ccomplex csocial cquestions.
d. help cthe cstudent clearn cto crationally canalyze csocial cproblems.
ANSWER: c d
8. When ca csociety ccannot cproduce call cthe cgoods cand cservices cpeople cwish cto chave, cit cis csaid cthat cthe
ceconomy cis cexperiencing
a. scarcity.
b. shortages.
c. inefficiencies.
d. inequities.
ANSWER: c a
9. Which cof cthe cfollowing cis cthe cbest cdefinition cof ceconomics?
a. An cinvestigation cof cthe cquantities cand cprices cof cthe cvarious cgoods cproduced cby cthe cnations cof cthe cworld.
b. An canalysis cof chow cindividuals cand csocieties cdeal cwith cthe cproblem cof cscarcity.
c. An cexamination cof cthe crole cthat cmoney cplays cin cthe ceconomy.
d. A cstudy cof chow cgoods cand cservices care cdistributed cthroughout cthe cworld.
ANSWER: c b
10. Economics cis cprimarily cthe cstudy cof
a. how cto cmake cmoney cin cthe cstock cmarket.
b. how cto coperate ca cbusiness csuccessfully.
c. the callocation cof cscarce cresources cin can ceffort cto csatisfy cwants cthat care cvirtually cunlimited.
d. the cmethods cbusiness cfirms cuse cto creduce ctheir ccosts cof cproduction.
ANSWER: c c
11. Some cindividuals cor cfamilies ccan cbecome ccompletely csaturated cwith ca cservice csuch cas ctelevision. cThis csuggests
cthat
a. a chighly cproductive ceconomy cmay csomeday cbe cable cto csatisfy call chuman cdesires
b. desires cfor ca csingle ccommodity ccan cbe csatisfied cbut cthen cthe cfocus cwill cswitch cto cother cgoods cand cservices
c. resources care cnot ctruly cfixed cin csupply cas cwe cgenerally cassume
d. scarcity cdoes cnot cexist
ANSWER: c b
12. In ceconomics, cthe cterm c"scarcity" crefers cto cthe cfact cthat
a. everything creally cworthwhile ccosts cmoney.
b. even cin cwealthy ccountries clike cthe cUnited cStates, csome cpeople care cpoor.
c. no csociety ccan cproduce cenough cto csatisfy cfully cthe cdesires cof cpeople cfor cgoods cand cservices.
d. sometimes cshortages cof ca cgood carise cwhen cits cprice cis cset cbelow cthe cmarket cequilibrium.
ANSWER: c c
Copyright cCengage cLearning. cPowered cby Page c2
cCognero.
mynursytest.store
, DOWNLOAD cTHE cTest cBank cfor cEconomics cPrivate cand cPublic cChoice
c17th cEdition cGwartney
Name: Class: Date:
Ch c01: cMC
13. When ceconomists csay ca cgood cis cscarce, cthey cmean
a. there care conly ca climited cnumber cof cconsumers cwho cwould cbe cinterested cin cpurchasing cthe cgood.
b. the chuman cdesire cfor cthe cgood cexceeds cthe camount cfreely cavailable cfrom cnature.
c. most cpeople cin cpoorer ccountries cdo cnot chave cenough cof cthe cgood.
d. the cproduction cof cthe cgood chas cno copportunity ccost cfor csociety.
ANSWER: c b
14. When ceconomists csay cgoods care cscarce, cthey cmean
a. consumers care ctoo cpoor cto cafford cthe cgoods cand cservices cavailable.
b. consumers care cunwilling cto cbuy cgoods cunless cthey chave cvery clow cprices.
c. goods care cgenerally cfreely cavailable cfrom cnature cin cmost ccountries.
d. the cdesire cfor cgoods cand cservices cexceeds cour cability cto cproduce cthem cwith cthe climited cresources cavailable.
ANSWER: c d
15. If cscarcity cwere celiminated,
a. individuals cwould chave cto cmake ctrade-offs.
b. individuals cwould chave cto cmake cmany cchoices.
c. individuals cwould chave climited cresources.
d. all cgoods cwould cbe cfree.
ANSWER: c d
16. If ca cgood cis cscarce,
a. there cwill cbe cshortages cof cit cif cthe cgood cis crationed cby cmarkets.
b. the cgood cwill chave ca cprice cin ca cmarket csetting.
c. there cwill cbe cenough cof cthe cgood cfreely cavailable cfrom cnature cto csatisfy cthe chuman cdesire cfor cit.
d. all cgoods care cfree.
ANSWER: c b
17. Criteria cfor crationing cgoods cand cresources cmust cbe cestablished cbecause cof
a. the claw cof ccomparative cadvantage.
b. the cuse cof ccapitalism cas ca cform cof ceconomic corganization.
c. the cinability cof cpoliticians cto cdevelop cefficient cforms cof ceconomic corganization.
d. scarcity cimposed cby cnature.
ANSWER: c d
18. Every ceconomy cmust cration cgoods cin csome cway cbecause cof
a. overpopulation.
b. poorly-performing cmarkets.
c. the cincome cgap cbetween crich cand cpoor.
d. scarcity.
ANSWER: c d
19. Which cof cthe cfollowing cis ctrue cof cresources?
a. Physical cresources creflect cthe cskills cand cproductive cknowledge cof chuman cbeings.
Copyright cCengage cLearning. cPowered cby Page c3
cCognero.
mynursytest.store
