,Test Bank For Principles of Macroeconomics (MindTap Course List) 9th Edition
Chapter 1. Ten Principles of Economics.
Chapter 1. Ten Principles of Economics.
1. 001: Resources are ...
Resources are
a. scarce for households but plentiful for economies.
b. plentiful for households but scarce for economies.
*c. scarce for households and scarce for economies.
d. plentiful for households and plentiful for economies.
2. 002: Fundamentally, economics deals with
Fundamentally, economics deals with
*a. scarcity.
b. money.
c. poverty.
d. banking.
3. 003: The overriding reason why households and societies face man
The overriding reason why households and societies face many decisions is that
*a. resources are scarce.
b. goods and services are not scarce.
c. incomes fluctuate with business cycles.
d. people, by nature, tend to disagree.
4. 004: The phenomenon of scarcity stems from the fact that ...
The phenomenon of scarcity stems from the fact that
a. most economies' production methods are not very good.
b. in most economies, wealthy people consume disproportionate quantities of goods and
services.
c. governments restrict production of too many goods and services.
*d. resources are limited.
5. 005: In most societies, resources are allocated by...
In most societies, resources are allocated by
a. a single central planner.
b. a small number of central planners.
c. those firms that use resources to provide goods and services.
*d. the combined actions of millions of households and firms.
1
,Test Bank For Principles of Macroeconomics (MindTap Course List) 9th Edition
Chapter 1. Ten Principles of Economics.
6. 006: Coal is considered to be a nonrenewable energy source. Whic
Coal is considered to be a nonrenewable energy source. Which of the following statements is
correct?
a. Coal is an unlimited resource.
*b. Coal is a scarce resource.
c. Coal is a nonscarce resource.
d. Coal is not a resource.
7. 007: Economics is the study of how society manages its...
Economics is the study of how society manages its
a. limited wants and unlimited resources.
b. unlimited wants and unlimited resources.
c. limited wants and limited resources.
*d. unlimited wants and limited resources.
8. 008: What term refers to the property that society has limited r
What term refers to the idea that society has limited resources and therefore cannot produce all
the goods and services people wish to have?
a. inefficiency
b. inequality
*c. scarcity
d. market failure
9. 009: The adage, "There ain't no su
The adage, "There ain't no such thing as a free lunch," means
a. even people on welfare have to pay for food.
b. the cost of living is always increasing.
*c. people face tradeoffs.
d. all costs are included in the price of a product.
10. 010: Which of the following statements best represents the princ
Which of the following statements best represents the principle represented by the adage, "There
ain't no such thing as a free lunch"?
a. Diego can attend the concert only if he takes his sister with him.
b. Justin is hungry and homeless.
c. Zehra must repair the tire on her bike before she can ride it to class.
*d. Dani must decide between going to Florida or Brazil for spring break.
11. 011: Candice is planning her activities for a hot summer day. S
Candice is planning her activities for a hot summer day. She would like to go to the local
2
, Test Bank For Principles of Macroeconomics (MindTap Course List) 9th Edition
Chapter 1. Ten Principles of Economics.
swimming pool and see the latest blockbuster movie, but because she can only get tickets to the
movie for the same time that the pool is open she can only choose one activity. This illustrates the
basic principle that
a. people respond to incentives.
b. rational people think at the margin.
*c. people face tradeoffs.
d. improvements in efficiency sometimes come at the expense of equality.
12. 012: While pollution regulations yield the benefit of a cleaner
While pollution regulations yield the benefit of a cleaner environment and the improved health
that comes with it, the regulations come at the cost of reducing the incomes of the regulated firms'
owners, workers, and customers. This statement illustrates the principle that
a. trade can make everyone better off.
b. rational people think at the margin.
*c. people face tradeoffs.
d. people respond to incentives.
13. 013: When society requires that firms reduce pollution, there is
When society requires that firms reduce pollution, there is
*a. a tradeoff because of reduced incomes to the firms' owners and workers.
b. a tradeoff only if some firms are forced to close.
c. no tradeoff, since the cost of reducing pollution falls only on the firms affected by the
requirements.
d. no tradeoff, since everyone benefits from reduced pollution.
14. 014: Efficiency means that
Efficiency means that
a. society is conserving resources in order to save them for the future.
b. society's goods and services are distributed equally among society's members.
c. society's goods and services are distributed fairly, though not necessarily equally,
among society's members.
*d. society is getting the most it can from its scarce resources.
15. 015: The property of society getting the most it can from its sc
The property of society getting the most it can from its scarce resources is called
*a. efficiency.
b. equality.
c. externality.
d. productivity.
3
Chapter 1. Ten Principles of Economics.
Chapter 1. Ten Principles of Economics.
1. 001: Resources are ...
Resources are
a. scarce for households but plentiful for economies.
b. plentiful for households but scarce for economies.
*c. scarce for households and scarce for economies.
d. plentiful for households and plentiful for economies.
2. 002: Fundamentally, economics deals with
Fundamentally, economics deals with
*a. scarcity.
b. money.
c. poverty.
d. banking.
3. 003: The overriding reason why households and societies face man
The overriding reason why households and societies face many decisions is that
*a. resources are scarce.
b. goods and services are not scarce.
c. incomes fluctuate with business cycles.
d. people, by nature, tend to disagree.
4. 004: The phenomenon of scarcity stems from the fact that ...
The phenomenon of scarcity stems from the fact that
a. most economies' production methods are not very good.
b. in most economies, wealthy people consume disproportionate quantities of goods and
services.
c. governments restrict production of too many goods and services.
*d. resources are limited.
5. 005: In most societies, resources are allocated by...
In most societies, resources are allocated by
a. a single central planner.
b. a small number of central planners.
c. those firms that use resources to provide goods and services.
*d. the combined actions of millions of households and firms.
1
,Test Bank For Principles of Macroeconomics (MindTap Course List) 9th Edition
Chapter 1. Ten Principles of Economics.
6. 006: Coal is considered to be a nonrenewable energy source. Whic
Coal is considered to be a nonrenewable energy source. Which of the following statements is
correct?
a. Coal is an unlimited resource.
*b. Coal is a scarce resource.
c. Coal is a nonscarce resource.
d. Coal is not a resource.
7. 007: Economics is the study of how society manages its...
Economics is the study of how society manages its
a. limited wants and unlimited resources.
b. unlimited wants and unlimited resources.
c. limited wants and limited resources.
*d. unlimited wants and limited resources.
8. 008: What term refers to the property that society has limited r
What term refers to the idea that society has limited resources and therefore cannot produce all
the goods and services people wish to have?
a. inefficiency
b. inequality
*c. scarcity
d. market failure
9. 009: The adage, "There ain't no su
The adage, "There ain't no such thing as a free lunch," means
a. even people on welfare have to pay for food.
b. the cost of living is always increasing.
*c. people face tradeoffs.
d. all costs are included in the price of a product.
10. 010: Which of the following statements best represents the princ
Which of the following statements best represents the principle represented by the adage, "There
ain't no such thing as a free lunch"?
a. Diego can attend the concert only if he takes his sister with him.
b. Justin is hungry and homeless.
c. Zehra must repair the tire on her bike before she can ride it to class.
*d. Dani must decide between going to Florida or Brazil for spring break.
11. 011: Candice is planning her activities for a hot summer day. S
Candice is planning her activities for a hot summer day. She would like to go to the local
2
, Test Bank For Principles of Macroeconomics (MindTap Course List) 9th Edition
Chapter 1. Ten Principles of Economics.
swimming pool and see the latest blockbuster movie, but because she can only get tickets to the
movie for the same time that the pool is open she can only choose one activity. This illustrates the
basic principle that
a. people respond to incentives.
b. rational people think at the margin.
*c. people face tradeoffs.
d. improvements in efficiency sometimes come at the expense of equality.
12. 012: While pollution regulations yield the benefit of a cleaner
While pollution regulations yield the benefit of a cleaner environment and the improved health
that comes with it, the regulations come at the cost of reducing the incomes of the regulated firms'
owners, workers, and customers. This statement illustrates the principle that
a. trade can make everyone better off.
b. rational people think at the margin.
*c. people face tradeoffs.
d. people respond to incentives.
13. 013: When society requires that firms reduce pollution, there is
When society requires that firms reduce pollution, there is
*a. a tradeoff because of reduced incomes to the firms' owners and workers.
b. a tradeoff only if some firms are forced to close.
c. no tradeoff, since the cost of reducing pollution falls only on the firms affected by the
requirements.
d. no tradeoff, since everyone benefits from reduced pollution.
14. 014: Efficiency means that
Efficiency means that
a. society is conserving resources in order to save them for the future.
b. society's goods and services are distributed equally among society's members.
c. society's goods and services are distributed fairly, though not necessarily equally,
among society's members.
*d. society is getting the most it can from its scarce resources.
15. 015: The property of society getting the most it can from its sc
The property of society getting the most it can from its scarce resources is called
*a. efficiency.
b. equality.
c. externality.
d. productivity.
3
