Chapter 1—Introducing the Economic Way of Thinking
MULTIPLE CHOICE
1. When economists say scarcity, they mean:
a. there are only a limited number of consumers who would be interested in purchasing
goods.
b. the human desire for goods exceeds the available supply of time, goods and resources.
c. most people in poorer countries do not have enough goods.
d. goods are so expensive that only the rich can afford it.
ANS: B PTS: 1 DIF: Easy REF: Full: 3 | Mic: 3
TOP: Scarcity TYP: RE
2. When economists say goods are scarce, they mean:
a. consumers are too poor to afford the goods and services available.
b. consumers are unwilling to buy goods unless they have very low prices.
c. goods are generally freely available from nature in most countries.
d. the desire for goods and services exceeds our ability to produce them with the limited
resources available.
ANS: D PTS: 1 DIF: Medium REF: Full: 3 | Mic: 3
TOP: Scarcity TYP: SA
3. Scarcity is a problem:
a. measured by the amount of goods available.
, b. of the poor, but not the rich.
c. because human wants are unlimited while resources are limited.
d. only in industrialized economies.
ANS: C PTS: 1 DIF: Easy REF: Full: 3 | Mic: 3
TOP: Scarcity TYP: RE
4. Scarcity can be eliminated if:
a. people satisfy needs rather than wants.
b. sufficient new resources were discovered.
c. output of goods and services were increased.
d. none of these.
ANS: D PTS: 1 DIF: Easy REF: Full: 3 | Mic: 3
TOP: Scarcity TYP: RE
5. Scarcity is a(n):
a. problem only in industrialized economies.
b. condition measured by the quantity of goods available.
c. subjective concept that human wants can never be satisfied.
d. problem only in poor economies.
ANS: C PTS: 1 DIF: Easy REF: Full: 3 | Mic: 3
TOP: Scarcity TYP: RE
6. The condition of scarcity:
a. cannot be eliminated.
, b. prevails in poor economies.
c. prevails in rich economies.
d. All of these.
ANS: D PTS: 1 DIF: Easy REF: Full: 3 | Mic: 3
TOP: Scarcity TYP: RE
7. Scarcity:
a. exists because resources are unlimited while human wants are limited.
b. means we are unable to have as much as we would like to have.
c. will likely be eliminated as technology continues to expand.
d. is not an issue addressed in economics.
ANS: B PTS: 1 DIF: Easy REF: Full: 3 | Mic: 3
TOP: Scarcity TYP: RE
8. Which of the following would eliminate scarcity as an economic problem?
a. Moderation of people's competitive instincts.
b. Discovery of sufficiently large new energy reserves.
c. Resumption of steady productivity growth.
d. None of these.
ANS: D PTS: 1 DIF: Easy REF: Full: 3 | Mic: 3
TOP: Scarcity TYP: RE
9. The finite nature of the economy's resource base:
a. will be solved if only we would learn to conserve.
, b. is only a problem in developing countries.
c. will be solved as technology advances.
d. will always be with us.
ANS: D PTS: 1 DIF: Medium REF: Full: 3 | Mic: 3
TOP: Scarcity TYP: SA
10. Human wants:
a. are unfilled only in the poorer countries of the world.
b. can be completely satisfied by advancing technology.
c. can never be fully satisfied.
d. only apply to necessities.
e. exist only if we are selfish.
ANS: C PTS: 1 DIF: Medium REF: Full: 3 | Mic: 3
TOP: Scarcity TYP: SA
11. Scarcity:
a. is a problem only in the poorer countries of the world.
b. can be solved by rapid advances in technology.
c. is a problem that exists in every economy.
d. is not a problem for the very rich.
ANS: C PTS: 1 DIF: Medium REF: Full: 3 | Mic: 3
TOP: Scarcity TYP: SA
12. The perpetual problem in economics is:
MULTIPLE CHOICE
1. When economists say scarcity, they mean:
a. there are only a limited number of consumers who would be interested in purchasing
goods.
b. the human desire for goods exceeds the available supply of time, goods and resources.
c. most people in poorer countries do not have enough goods.
d. goods are so expensive that only the rich can afford it.
ANS: B PTS: 1 DIF: Easy REF: Full: 3 | Mic: 3
TOP: Scarcity TYP: RE
2. When economists say goods are scarce, they mean:
a. consumers are too poor to afford the goods and services available.
b. consumers are unwilling to buy goods unless they have very low prices.
c. goods are generally freely available from nature in most countries.
d. the desire for goods and services exceeds our ability to produce them with the limited
resources available.
ANS: D PTS: 1 DIF: Medium REF: Full: 3 | Mic: 3
TOP: Scarcity TYP: SA
3. Scarcity is a problem:
a. measured by the amount of goods available.
, b. of the poor, but not the rich.
c. because human wants are unlimited while resources are limited.
d. only in industrialized economies.
ANS: C PTS: 1 DIF: Easy REF: Full: 3 | Mic: 3
TOP: Scarcity TYP: RE
4. Scarcity can be eliminated if:
a. people satisfy needs rather than wants.
b. sufficient new resources were discovered.
c. output of goods and services were increased.
d. none of these.
ANS: D PTS: 1 DIF: Easy REF: Full: 3 | Mic: 3
TOP: Scarcity TYP: RE
5. Scarcity is a(n):
a. problem only in industrialized economies.
b. condition measured by the quantity of goods available.
c. subjective concept that human wants can never be satisfied.
d. problem only in poor economies.
ANS: C PTS: 1 DIF: Easy REF: Full: 3 | Mic: 3
TOP: Scarcity TYP: RE
6. The condition of scarcity:
a. cannot be eliminated.
, b. prevails in poor economies.
c. prevails in rich economies.
d. All of these.
ANS: D PTS: 1 DIF: Easy REF: Full: 3 | Mic: 3
TOP: Scarcity TYP: RE
7. Scarcity:
a. exists because resources are unlimited while human wants are limited.
b. means we are unable to have as much as we would like to have.
c. will likely be eliminated as technology continues to expand.
d. is not an issue addressed in economics.
ANS: B PTS: 1 DIF: Easy REF: Full: 3 | Mic: 3
TOP: Scarcity TYP: RE
8. Which of the following would eliminate scarcity as an economic problem?
a. Moderation of people's competitive instincts.
b. Discovery of sufficiently large new energy reserves.
c. Resumption of steady productivity growth.
d. None of these.
ANS: D PTS: 1 DIF: Easy REF: Full: 3 | Mic: 3
TOP: Scarcity TYP: RE
9. The finite nature of the economy's resource base:
a. will be solved if only we would learn to conserve.
, b. is only a problem in developing countries.
c. will be solved as technology advances.
d. will always be with us.
ANS: D PTS: 1 DIF: Medium REF: Full: 3 | Mic: 3
TOP: Scarcity TYP: SA
10. Human wants:
a. are unfilled only in the poorer countries of the world.
b. can be completely satisfied by advancing technology.
c. can never be fully satisfied.
d. only apply to necessities.
e. exist only if we are selfish.
ANS: C PTS: 1 DIF: Medium REF: Full: 3 | Mic: 3
TOP: Scarcity TYP: SA
11. Scarcity:
a. is a problem only in the poorer countries of the world.
b. can be solved by rapid advances in technology.
c. is a problem that exists in every economy.
d. is not a problem for the very rich.
ANS: C PTS: 1 DIF: Medium REF: Full: 3 | Mic: 3
TOP: Scarcity TYP: SA
12. The perpetual problem in economics is:
