,TESTBANK for Essentials of Economics, 10th Edition
N. Gregory Mankiw
Notes
1- The file is chapter after chapter.
2- We have shown you 10 pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many
new editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
,Name: Class: Date:
Ch 01: MC Algo
1. 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
2. Fundamentally, economics deals with
a. scarcity.
b. money.
c. poverty.
d. banking.
ANSWER: a
3. 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
4. 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
5. 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
6. Natural gas is considered to be a nonrenewable energy source. Which of the following statements is
correct?
a. Natural gas is an unlimited resource.
b. Natural gas is a scarce resource.
c. Natural gas is a nonscarce resource.
d. Natural gas is not a resource.
ANSWER: b
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, Name: Class: Date:
Ch 01: MC Algo
7. 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
8. 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
ANSWER: c
9. 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.
ANSWER: c
10. Which of the following statements best represents the principle of the adage, "There ain't no such
thing as a free lunch"?
a. Isaiah can go bike riding only if he takes his sister with him.
b. Jada is starving and homeless.
c. Alivia must put gas in her truck before she can drive it to school.
d. Sachi must decide between going to New York or Montreal for fall break.
ANSWER: d
11. Candice is planning her activities for a hot summer day. She would like to go to the local 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.
ANSWER: c
12. 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.
Copyright Cengage Learning. Powered by Cognero. Page 2
N. Gregory Mankiw
Notes
1- The file is chapter after chapter.
2- We have shown you 10 pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many
new editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
,Name: Class: Date:
Ch 01: MC Algo
1. 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
2. Fundamentally, economics deals with
a. scarcity.
b. money.
c. poverty.
d. banking.
ANSWER: a
3. 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
4. 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
5. 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
6. Natural gas is considered to be a nonrenewable energy source. Which of the following statements is
correct?
a. Natural gas is an unlimited resource.
b. Natural gas is a scarce resource.
c. Natural gas is a nonscarce resource.
d. Natural gas is not a resource.
ANSWER: b
Copyright Cengage Learning. Powered by Cognero. Page 1
, Name: Class: Date:
Ch 01: MC Algo
7. 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
8. 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
ANSWER: c
9. 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.
ANSWER: c
10. Which of the following statements best represents the principle of the adage, "There ain't no such
thing as a free lunch"?
a. Isaiah can go bike riding only if he takes his sister with him.
b. Jada is starving and homeless.
c. Alivia must put gas in her truck before she can drive it to school.
d. Sachi must decide between going to New York or Montreal for fall break.
ANSWER: d
11. Candice is planning her activities for a hot summer day. She would like to go to the local 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.
ANSWER: c
12. 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.
Copyright Cengage Learning. Powered by Cognero. Page 2
