Lenonrob

1. Recall Chapter 1's opening story about the British sea captains and the convicted felons. In what way were incentives used to solve the problem of the high mortality rate on board the ships? A) Payment (to ship captains) was to be offered for each prisoner that was taken aboard the ships. B) Payment (to ship captains) was made independent of the regulations passed for prisoner welfare. C) Regulations were passed so that prisoners could get better food, water, and medical care. D) Paymen...

. The countries of Oceania and Eurasia are at war.5 As depicted in the figure, Oceania has four cities—Argula, Betra, Carnat, and Dussel—and it is concerned that one of them is to be bombed by Eurasia. The bombers could come from either base Alpha, which can reach the cities of Argula and Betra; or from base Beta, which can reach either Carnat or Dussel. Eurasia decides which one of these four cities to attack. Oceania doesn’t know which one has been selected, but does observe the bas...

1. Economics is BEST defined as the study of how: A) to classify resources used to produce final goods and services. B) resources are apportioned to satisfy human wants. C) people make rational decisions. D) technology can be used to change scarce resources into free resources. 2. The study of economics: A) primarily considers the stock market. B) is about people's decisions regarding their use of scarce resources. C) doesn't apply to decisions made by businesses. D) states efficiency...

MULTIPLE CHOICE 1. Scarcity is a problem: A . that only poor people face. B . because human wants are limited while resources are unlimited. C . because human wants are unlimited while resources are limited. D . only in third world countries. ANS: C PTS: 1 DIF: Easy REF: The problem of scarcity 2. Scarcity is a situation: A . where people’s needs exceed their resources. B . where people’s wants exceed their resources. C . where the quantity of resources is sufficient ...

Chapter 1 An Introduction to the World Economy 1.1 Introduction: International Economic Integration 1) There are no questions for this section. Topic: Introduction: International Economic Integration 1.2 Elements of International Economic Integration 1) Countries such as the United States that have large populations tend to have A) higher trade-to-GDP ratios. B) lower trade-to-GDP ratios. C) relatively greater capital outflows. D) relatively smaller capital outflows. Answer: B Topic: ...

Chapter 1 The Nature of Economics 1.1 The Power of Economic Analysis 1) The economic way of thinking will help you A) make decisions in financing your home. B) analyze solutions to economic problems. C) make better decisions concerning your education. D) all of these Answer: D 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 2) Economic analysi...

Chapter 1 Getting Started 1.1 Definition and Questions 1) Scarcity exists because A) human wants exceed the resources available to satisfy them. B) some individuals have low income. C) the costs of production are high. D) some people make bad economic decisions. E) people take too much leisure time. Answer: A Topic: Scarcity Skill: Level 1: Definition Section: Checkpoint 1.1 Status: Old AACSB: Reflective thinking 2) Scarcity A) is the inability to satisfy all our wants. B) leads ...

1) The higher the interest rate, A) the greater the present value of a future amount. B) the smaller the present value of a future amount. C) the greater the level of inflation. D) the smaller the level of inflation. 2) If the interest rate is 10 percent and cash flows are $1,000 at the end of year one and $2,000 at the end of year two, then the present value of these cash flows is A) $2,562. B) $3,200. C) $439. D) $3,000. 3) ...

Chapter 1 Economic Questions and Data 1.1 Multiple Choice Questions 1) Analyzing the behavior of unemployment rates across U.S. states in March of 2006 is an example of using: A) time series data. B) panel data. C) cross-sectional data. D) experimental data. Answer: C 2) Studying inflation in the United States from 1970 to 2006 is an example of using: A) randomized controlled experiments. B) time series data. C) panel data. D) cross-sectional data. Answer: B 3) Analyzing the effec...

Chapter 1 Introduction 1.1 Managerial Decision Making 1) Microeconomics studies the allocation of A) decision makers. B) scarce resources. C) models. D) unlimited resources. Answer: B Skill: Definition AACSB: Analytical Thinking Status: Old 2) Society faces trade-offs because of A) government regulations. B) the profit motive. C) price setting by firms. D) scarcity. Answer: D Skill: Conceptual AACSB: Analytical Thinking Status: New 3) Managerial economics A) describes how pa...