Full file at http://testbankinstant.CH/Test-Bank-for-Macroeconomics-A-contemporary-
m m m
introduction-by-William-McEachern,-10e
Chapter 1--The Art and Science of Economic Analysis
m m m m m m m
Student:m
1. Economicsmismbest mdefined masmthemstudymof mhow mindividualsmdecidemtomusemlimited mresourcesminmanmattemp
t mtomsatisfymunlimited mwants.
A. True
B. False
2. Economicsmstudiesmhowmdecisionmmakersmusemscarcemresourcesmtomsatisfymunlimited mwants.
A. True
B. False
3. Inmeconomics,mmoneymismanmexamplemof mcapital.
A. True
B. False
4. Profit mismthempayment mreceived mbymresourcemownersmformthemusemof mtheirmcapital.
A. True
B. False
5. Rent mismthempayment mreceived mbymresourcemownersmformthemusemof mtheirmnaturalmresources.
A. True
B. False
6. Themfact mthat mpeoplemhavemunlimited mwantsmmeansmthat
A. theymalwaysmwant mmoremof mat mleast monemgood
B. eachmpersonmhasmanmunlimited mdesiremformeverymgood
C. labormunionsmdemand mwagemincreases
D. selfishmpeoplemaremnot mconcerned mabout mothers
E. peoplembuymgoodsmwithout mregard mtomwhat mtheymcanmafford
downloadm fullm filem atm http://testbankinstant.co
m
, Full file at http://testbankinstant.CH/Test-Bank-for-Macroeconomics-A-contemporary-
m m m
introduction-by-William-McEachern,-10e
7. Themproblemmof mscarcemresources
A. meansmthat minmsomemcitiesmtheremaremnot menoughmjobs
B. could mbemsolved mif mthemunemployment mratemfell
C. ismthat mtheremaremnot menoughmresourcesmtomsatisfympeople'smunlimited mwants
D. ismthat mresourcesmaremused minefficiently
E. canmbemsolved mbymloweringmtaxes
8. Scarcitymismbest mdefined mas
A. unlimited mresources
B. amshortagem--mwhenmbuyersmcannot mobtainmthemgoodsmtheymwant
C. amsurplusm--mwhenmsellersmcannot msellmthemgoodsmtheymproduce
D. insufficient mresourcesmtomsatisfymunlimited mwants
E. themprivatemownershipmof msociety'smresources
9. Scarcity
A. existsmbecausempeoplemhavemwantsmthat maremunlimited mrelativemtomthemavailabilitymof mresourcesmtomsatisfymth
osemwants
B. appliesmwhenmamresourcemismnot mfreelymavailable
C. meansmthat meachmsocietymand meachmindividualmmust mmakemchoices
D. existsminmallmsocieties
E. allmof mthemabovemaremtrue
10. Becausempeople'smwantsmaremunlimited mbut mresourcesmaremscarce,
A. onlymthemrichmget meverythingmtheymwant
B. choicesmmust mbemmade
C. theremwillmbemmoremservicesmproduced mthanmgoods
D. peoplemsearchmformspiritualmfulfillment mrathermthanmmaterialmfulfillment
E. poormpeoplemnevermget manythingmtheymwant
11. Whichmof mthemfollowingmstatementsmregardingmthembasicmeconomicmproblemmof mscarcitymismcorrect?
A. Themproblemmonlymexistsminmcountriesmthat maremnot mhighlymindustrialized.
B. Themproblemmismlikelymtomdisappearmasmproductionmincreases.
C. Themproblemmismsuremtomdisappearmasmtechnologymimproves.
D. Themproblemmwillmexist masmlongmasmresourcesmaremavailablem inmlimited mamounts.
E. Themproblemmwillmdisappearmasmamperson'smincomemfalls.
downloadm fullm filem atm http://testbankinstant.co
m
, Full file at http://testbankinstant.CH/Test-Bank-for-Macroeconomics-A-contemporary-
m m m
introduction-by-William-McEachern,-10e
12. Somemindividualsmormfamiliesmcanmbecomemcompletelymsaturated mwithmamservicemsuchmasmtelevision.m T
hismsuggestsmthat
A. wantsmaremlimited
B. desiresmformamsinglemcommoditymcanmbemsatisfied mbut mthenmthemfocusmwillmswitchmtomothermgoodsmand mservices
C. amhighlymproductivemeconomymmaymsomedaymbemablemtomsatisfymallmhumanmdesires
D. resourcesmaremnot mtrulymfixed minmsupplymasmwemgenerallymassume
E. scarcitymdoesmnot mexist
13. Themexistencemof mscarcitymasmdefined mbymeconomistsmmeansmthat
A. societiesmareminefficientlymorganized
B. peoplemaremirrational
C. societiesmmust mmakemchoicesmof mhowmtomusemtheirmresources
D. resourcesmaremnon-renewable
E. peoplemaremgreedy
14. Economicsmismbest mdefined masmthemstudymof mhow
A. individualsmdecidemtomusemscarcemresourcesminmanmattempt mtomsatisfymtheirmunlimited mwants
B. tommakemmoney
C. themgovernment mshould mdealmwithmunemployment mand minflation
D. tomeliminatemthemproblemmof mscarcemresources
E. tomrunmambusiness
15. Economicsmismthemstudymof
A. how mtomget mrichmbymplayingmthemstockmmarket
B. thembest mwaysmtomreducempeople'smwants,mgivenmthemscarcitymof mresources
C. how mrationalmgovernment mofficialsmdeterminemwhat mgoodsmshould mbemproduced
D. moneymand mwhymit mismgood
E. how mpeoplemusemlimited mresourcesmtomtrymtomsatisfymunlimited mwants
16. ‘Whichmof mthemfollowingmismthembest mdefinitionmof meconomics?
A. Anminvestigationmof mthemquantitiesmand mpricesmof mthemvariousmgoodsmproduced mbymthemnationsmof mthemworld.
B. A mstudymof mwhyminflationmand munemployment mperiodicallymplaguemthemU.S.meconomy.
C. Anmanalysismof mhow mindividualsmand msocietiesmdealmwithmthemproblemmof mscarcity.
D. Anmexaminationmof mthemrolemthat mmoneymplaysminmthemeconomy.
E. A mstudymof mhow mgoodsmand mservicesmaremdistributed mthroughout mthemworld.
downloadm fullm filem atm http://testbankinstant.co
m
, Full file at http://testbankinstant.CH/Test-Bank-for-Macroeconomics-A-contemporary-
m m m
introduction-by-William-McEachern,-10e
17. Themstudymof mhow mnationsmdealmwithmthemproblemmof mscarcitymismthemdomainmof
A. economics
B. politicalmscience
C. sociology
D. politicalmeconomy
E. anthropology
18. Economicsmismbest mdescribed masmthe
A. studymof mchoicemwhenmscarcitymexists
B. studymof mthemproductionmof mgoodsmand mservices
C. theorymof mconsumermbehavior
D. sciencemof mmoney
E. art mof mspendingmmoneymwisely
19. Michiganmhasmanmabundant msupplymof mfreshmwater.mHowever,manmeconomist mwould mconsidermit mamscarcemresou
rcembecause
A. watermismnecessarymformhumans'mphysicalmsurvival
B. pollutionmwillmeventuallymdestroymallmlifeminmthemGreat mLakes
C. watermismlimited mrelativemtompeople'smunlimited mwants
D. watermcommandsmamverymhighmprice
E. naturemcanmdestroymwatermasmwellmasmcreatemit
20. Economics
A. studiesmhumanmbehaviormwhenmscarcitymexistsmand mchoicesmmust mbemmade
B. providesmthemonlymreasonablemexplanationmof mhow mpeoplemmakemdecisions
C. canmaccuratelymexplainmallmhumanmbehaviormsincemit mismbased monmthemassumptionmof mrationality
D. ismbettermat mshowingmthemwaymthingsmought mtombemthanmthemothermsocialmsciencesmare
E. ismthemonlymsocialmsciencemthat mcanmexplainmthemexistencemand mbehaviormof mpublicminstitutions
21. Anmeconomist mwould mclassifym100msharesmof mApplemComputermstockmasmcapital.
A. True
B. False
22. Profit mismthempayment mmademformland mresources.
A. True
B. False
downloadm fullm filem atm http://testbankinstant.co
m
m m m
introduction-by-William-McEachern,-10e
Chapter 1--The Art and Science of Economic Analysis
m m m m m m m
Student:m
1. Economicsmismbest mdefined masmthemstudymof mhow mindividualsmdecidemtomusemlimited mresourcesminmanmattemp
t mtomsatisfymunlimited mwants.
A. True
B. False
2. Economicsmstudiesmhowmdecisionmmakersmusemscarcemresourcesmtomsatisfymunlimited mwants.
A. True
B. False
3. Inmeconomics,mmoneymismanmexamplemof mcapital.
A. True
B. False
4. Profit mismthempayment mreceived mbymresourcemownersmformthemusemof mtheirmcapital.
A. True
B. False
5. Rent mismthempayment mreceived mbymresourcemownersmformthemusemof mtheirmnaturalmresources.
A. True
B. False
6. Themfact mthat mpeoplemhavemunlimited mwantsmmeansmthat
A. theymalwaysmwant mmoremof mat mleast monemgood
B. eachmpersonmhasmanmunlimited mdesiremformeverymgood
C. labormunionsmdemand mwagemincreases
D. selfishmpeoplemaremnot mconcerned mabout mothers
E. peoplembuymgoodsmwithout mregard mtomwhat mtheymcanmafford
downloadm fullm filem atm http://testbankinstant.co
m
, Full file at http://testbankinstant.CH/Test-Bank-for-Macroeconomics-A-contemporary-
m m m
introduction-by-William-McEachern,-10e
7. Themproblemmof mscarcemresources
A. meansmthat minmsomemcitiesmtheremaremnot menoughmjobs
B. could mbemsolved mif mthemunemployment mratemfell
C. ismthat mtheremaremnot menoughmresourcesmtomsatisfympeople'smunlimited mwants
D. ismthat mresourcesmaremused minefficiently
E. canmbemsolved mbymloweringmtaxes
8. Scarcitymismbest mdefined mas
A. unlimited mresources
B. amshortagem--mwhenmbuyersmcannot mobtainmthemgoodsmtheymwant
C. amsurplusm--mwhenmsellersmcannot msellmthemgoodsmtheymproduce
D. insufficient mresourcesmtomsatisfymunlimited mwants
E. themprivatemownershipmof msociety'smresources
9. Scarcity
A. existsmbecausempeoplemhavemwantsmthat maremunlimited mrelativemtomthemavailabilitymof mresourcesmtomsatisfymth
osemwants
B. appliesmwhenmamresourcemismnot mfreelymavailable
C. meansmthat meachmsocietymand meachmindividualmmust mmakemchoices
D. existsminmallmsocieties
E. allmof mthemabovemaremtrue
10. Becausempeople'smwantsmaremunlimited mbut mresourcesmaremscarce,
A. onlymthemrichmget meverythingmtheymwant
B. choicesmmust mbemmade
C. theremwillmbemmoremservicesmproduced mthanmgoods
D. peoplemsearchmformspiritualmfulfillment mrathermthanmmaterialmfulfillment
E. poormpeoplemnevermget manythingmtheymwant
11. Whichmof mthemfollowingmstatementsmregardingmthembasicmeconomicmproblemmof mscarcitymismcorrect?
A. Themproblemmonlymexistsminmcountriesmthat maremnot mhighlymindustrialized.
B. Themproblemmismlikelymtomdisappearmasmproductionmincreases.
C. Themproblemmismsuremtomdisappearmasmtechnologymimproves.
D. Themproblemmwillmexist masmlongmasmresourcesmaremavailablem inmlimited mamounts.
E. Themproblemmwillmdisappearmasmamperson'smincomemfalls.
downloadm fullm filem atm http://testbankinstant.co
m
, Full file at http://testbankinstant.CH/Test-Bank-for-Macroeconomics-A-contemporary-
m m m
introduction-by-William-McEachern,-10e
12. Somemindividualsmormfamiliesmcanmbecomemcompletelymsaturated mwithmamservicemsuchmasmtelevision.m T
hismsuggestsmthat
A. wantsmaremlimited
B. desiresmformamsinglemcommoditymcanmbemsatisfied mbut mthenmthemfocusmwillmswitchmtomothermgoodsmand mservices
C. amhighlymproductivemeconomymmaymsomedaymbemablemtomsatisfymallmhumanmdesires
D. resourcesmaremnot mtrulymfixed minmsupplymasmwemgenerallymassume
E. scarcitymdoesmnot mexist
13. Themexistencemof mscarcitymasmdefined mbymeconomistsmmeansmthat
A. societiesmareminefficientlymorganized
B. peoplemaremirrational
C. societiesmmust mmakemchoicesmof mhowmtomusemtheirmresources
D. resourcesmaremnon-renewable
E. peoplemaremgreedy
14. Economicsmismbest mdefined masmthemstudymof mhow
A. individualsmdecidemtomusemscarcemresourcesminmanmattempt mtomsatisfymtheirmunlimited mwants
B. tommakemmoney
C. themgovernment mshould mdealmwithmunemployment mand minflation
D. tomeliminatemthemproblemmof mscarcemresources
E. tomrunmambusiness
15. Economicsmismthemstudymof
A. how mtomget mrichmbymplayingmthemstockmmarket
B. thembest mwaysmtomreducempeople'smwants,mgivenmthemscarcitymof mresources
C. how mrationalmgovernment mofficialsmdeterminemwhat mgoodsmshould mbemproduced
D. moneymand mwhymit mismgood
E. how mpeoplemusemlimited mresourcesmtomtrymtomsatisfymunlimited mwants
16. ‘Whichmof mthemfollowingmismthembest mdefinitionmof meconomics?
A. Anminvestigationmof mthemquantitiesmand mpricesmof mthemvariousmgoodsmproduced mbymthemnationsmof mthemworld.
B. A mstudymof mwhyminflationmand munemployment mperiodicallymplaguemthemU.S.meconomy.
C. Anmanalysismof mhow mindividualsmand msocietiesmdealmwithmthemproblemmof mscarcity.
D. Anmexaminationmof mthemrolemthat mmoneymplaysminmthemeconomy.
E. A mstudymof mhow mgoodsmand mservicesmaremdistributed mthroughout mthemworld.
downloadm fullm filem atm http://testbankinstant.co
m
, Full file at http://testbankinstant.CH/Test-Bank-for-Macroeconomics-A-contemporary-
m m m
introduction-by-William-McEachern,-10e
17. Themstudymof mhow mnationsmdealmwithmthemproblemmof mscarcitymismthemdomainmof
A. economics
B. politicalmscience
C. sociology
D. politicalmeconomy
E. anthropology
18. Economicsmismbest mdescribed masmthe
A. studymof mchoicemwhenmscarcitymexists
B. studymof mthemproductionmof mgoodsmand mservices
C. theorymof mconsumermbehavior
D. sciencemof mmoney
E. art mof mspendingmmoneymwisely
19. Michiganmhasmanmabundant msupplymof mfreshmwater.mHowever,manmeconomist mwould mconsidermit mamscarcemresou
rcembecause
A. watermismnecessarymformhumans'mphysicalmsurvival
B. pollutionmwillmeventuallymdestroymallmlifeminmthemGreat mLakes
C. watermismlimited mrelativemtompeople'smunlimited mwants
D. watermcommandsmamverymhighmprice
E. naturemcanmdestroymwatermasmwellmasmcreatemit
20. Economics
A. studiesmhumanmbehaviormwhenmscarcitymexistsmand mchoicesmmust mbemmade
B. providesmthemonlymreasonablemexplanationmof mhow mpeoplemmakemdecisions
C. canmaccuratelymexplainmallmhumanmbehaviormsincemit mismbased monmthemassumptionmof mrationality
D. ismbettermat mshowingmthemwaymthingsmought mtombemthanmthemothermsocialmsciencesmare
E. ismthemonlymsocialmsciencemthat mcanmexplainmthemexistencemand mbehaviormof mpublicminstitutions
21. Anmeconomist mwould mclassifym100msharesmof mApplemComputermstockmasmcapital.
A. True
B. False
22. Profit mismthempayment mmademformland mresources.
A. True
B. False
downloadm fullm filem atm http://testbankinstant.co
m
