Principles of Microeconomics Mankiw 7th.pdf

Multiple Choice – Section 00: Introduction 1. The English word that comes from the Greek word for "one who manages a household" is a. market. b. consumer. c. producer. d. economy. ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.1 - LO: 1-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: General Principles KEYWORDS: BLOOM'S: Knowledge 2. The word “economy” comes from the Greek word oikonomos, which means a. “environment.” b. “production.” c. “one who manages a household.” d. “one who makes decisions.” ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.1 - LO: 1-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: General Principles KEYWORDS: BLOOM'S: Knowledge Ten Principles of Economics 3 3. 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. ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.1 - LO: 1-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist Scarcity KEYWORDS: BLOOM'S: Comprehension 4. In considering how to allocate its scarce resources among its various members, a household considers a. each member’s abilities. b. each member’s efforts. c. each member’s desires. d. All of the above are correct. ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.1 - LO: 1-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist Scarcity KEYWORDS: BLOOM'S: Comprehension 4 5. Economics deals primarily with the concept of a. scarcity. b. money. c. poverty. d. banking. ANSWER: a POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.1 - LO: 1-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist Scarcity KEYWORDS: BLOOM'S: Knowledge 6. Which of the following is correct? a. The word economy comes from the Greek word for “rational thinker.” b. Economists study the management of scarce resources. c. Because economists believe that people pursue their best interests, they are not interested in how people interact. d. All of the above are correct. ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.1 - LO: 1-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist Scarcity KEYWORDS: BLOOM'S: Knowledge Ten Principles of Economics 5 7. 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. ANSWER: a POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.1 - LO: 1-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist Scarcity KEYWORDS: BLOOM'S: Comprehension 8. A society allocates its scarce resources to various jobs. These scarce resources include a. land. b. people. c. machines. d. All of the above are correct. ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.1 - LO: 1-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist Scarcity KEYWORDS: BLOOM'S: Comprehension NOTES: n 6 9. 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. ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.1 - LO: 1-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist Scarcity KEYWORDS: BLOOM'S: Comprehension 10. Approximately what percentage of the world's economies experience scarcity? a. 10% b. 40% c. 85% d. 100% ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.1 - LO: 1-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist Scarcity KEYWORDS: BLOOM'S: Comprehension Ten Principles of Economics 7 11. When a society cannot produce all the goods and services people wish to have, it is said that the economy is experiencing a. scarcity. b. surpluses. c. inefficiencies. d. inequalities. ANSWER: a POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.1 - LO: 1-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist Scarcity KEYWORDS: BLOOM'S: Comprehension 12. Which of the following products would be considered scarce? a. bread b. baseballs autographed by Babe Ruth c. motorcycles d. All of the above are correct. ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.1 - LO: 1-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist Scarcity KEYWORDS: BLOOM'S: Comprehension NOTES: r 8 13. Economics is the study of a. production methods. b. how society manages its scarce resources. c. how households decide who performs which tasks. d. the interaction of business and government. ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.1 - LO: 1-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist Scarcity KEYWORDS: BLOOM'S: Knowledge 14. The study of how society manages its scarce resources is most closely associated with which field of study? a. environmental studies b. economics c. management d. accounting ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.1 - LO: 1-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist Scarcity KEYWORDS: BLOOM'S: Knowledge NOTES: n Ten Principles of Economics 9 15. 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. ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.1 - LO: 1-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: General Principles KEYWORDS: BLOOM'S: Comprehension 16. Coal is considered to be a non-renewable 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 non-productive resource. d. Coal is not a resource. ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.1 - LO: 1-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist Scarcity KEYWORDS: BLOOM'S: Application NOTES: r 10 17. Which of the following is not an example of scarcity? a. Only some people can afford to buy a BMW automobile. b. Every individual in society cannot attain the highest standard of living to which he or she might aspire. c. Miranda has an unlimited supply of oranges in her orchard. d. Each member of a household cannot get everything he or she wants. ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.1 - LO: 1-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist Scarcity KEYWORDS: BLOOM'S: Application NOTES: r 18. 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. ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.1 - LO: 1-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist Scarcity KEYWORDS: BLOOM'S: Knowledge Ten Principles of Economics 11 19. Which of the following is a decision that economists study? a. how much people work b. what people buy c. how much money people save d. All of the above are correct. ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.1 - LO: 1-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: General Principles KEYWORDS: BLOOM'S: Comprehension 20. Which of the following is an example of something economists study? a. Mitch chooses to work overtime to earn extra income for his family. b. Megan sells her physics textbook from last semester to her roommate for half the price of a new textbook. c. The unemployment rate in the United States has fallen by two percentage points in the last few years. d. All of the above are correct. ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.1 - LO: 1-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: General Principles KEYWORDS: BLOOM'S: Comprehension NOTES: r