Test Bank for The Macro Economy Today 15th Edition By
Bradley Schiller
Student name:
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Scarcity results when available resources cannot satisfy all desired uses of those
resources.
⊚ true
⊚ false
2) Critics of government regulation argue that government interference in the marketplace
stifles the "animal spirits" of entrepreneurship.
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, ⊚ true
⊚ false
3) Opportunity cost is a theoretical concept with no practical application.
⊚ true
⊚ false
4) Every time we use scarce resources in one way, we give up the opportunity to use them
in other ways.
⊚ true
⊚ false
5) Production possibilities in an economy decrease as more resources and better technology
are utilized.
⊚ true
⊚ false
6) All output combinations that lie outside a production possibilities curve are attainable
with available resources and technology.
⊚ true
⊚ false
7) Output combinations that lie inside the production possibilities curve are characterized
by efficient use of resources.
⊚ true
⊚ false
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8) If the economy is inside the production possibilities curve, then more output can be
produced using existing resources.
⊚ true
Version 1 2
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⊚ false
9) All economies must make decisions concerning what to produce, how to produce it,
and for whom to produce.
⊚ true
⊚ false
10) The essential feature of the market mechanism is the price signal.
⊚ true
⊚ false
11) Government failure occurs when government intervention fails to improve economic
outcomes or makes them worse.
⊚ true
⊚ false
12) Microeconomics is concerned with individual performance as well as the economy as
a whole.
⊚ true
⊚ false
13) The Latin phrase ceteris paribus refers to holding other variables constant.
⊚ true
⊚ false
14) To calculate the slope of a line, find the vertical distance between two points and
divide it by the horizontal distance between the same two points.
⊚ true
⊚ false
Version 1 3
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Bradley Schiller
Student name:
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Scarcity results when available resources cannot satisfy all desired uses of those
resources.
⊚ true
⊚ false
2) Critics of government regulation argue that government interference in the marketplace
stifles the "animal spirits" of entrepreneurship.
Downloaded by: studyvault1 | Want to earn $1.236 Distribution of
this document is illegal extra per year?
, ⊚ true
⊚ false
3) Opportunity cost is a theoretical concept with no practical application.
⊚ true
⊚ false
4) Every time we use scarce resources in one way, we give up the opportunity to use them
in other ways.
⊚ true
⊚ false
5) Production possibilities in an economy decrease as more resources and better technology
are utilized.
⊚ true
⊚ false
6) All output combinations that lie outside a production possibilities curve are attainable
with available resources and technology.
⊚ true
⊚ false
7) Output combinations that lie inside the production possibilities curve are characterized
by efficient use of resources.
⊚ true
⊚ false
Version 1 1
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this document is illegal extra per year?
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8) If the economy is inside the production possibilities curve, then more output can be
produced using existing resources.
⊚ true
Version 1 2
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this document is illegal extra per year?
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⊚ false
9) All economies must make decisions concerning what to produce, how to produce it,
and for whom to produce.
⊚ true
⊚ false
10) The essential feature of the market mechanism is the price signal.
⊚ true
⊚ false
11) Government failure occurs when government intervention fails to improve economic
outcomes or makes them worse.
⊚ true
⊚ false
12) Microeconomics is concerned with individual performance as well as the economy as
a whole.
⊚ true
⊚ false
13) The Latin phrase ceteris paribus refers to holding other variables constant.
⊚ true
⊚ false
14) To calculate the slope of a line, find the vertical distance between two points and
divide it by the horizontal distance between the same two points.
⊚ true
⊚ false
Version 1 3
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document is illegal extra per year?
