Test Bank for Principles of Macroeconomics Global Financial Crisis Edition 6th Edition by TaylorEconomics is the study of how people cope with a.
... [Show More] unlimited resources. b. greed. c. scarcity. d. limited human wants. e. political disputes. ANS: C PTS: 1 DIF: basic OBJ: factual TOP: Scarcity 2. The concept of scarcity, as used by economists, refers to a. a situation in which an item is very expensive. b. a situation in which an item is available only in very small quantities. c. a situation in which a resource is nonrenewable. d. shortages. e. a situation in which the available resources are not enough to satisfy the wants of the people. ANS: E PTS: 1 DIF: moderate OBJ: factual TOP: Scarcity 3. The problem of scarcity is a. a problem only for poor countries. b. a problem only for economies under complete government control. c. faced by all economies. d. eliminated as the economy grows. e. not faced by free market economies. ANS: C PTS: 1 DIF: moderate OBJ: factual TOP: Scarcity 4. The basic economic problem is a. lack of money. b. unemployment. c. poverty. d. scarcity. e. inflation. ANS: D PTS: 1 DIF: basic OBJ: factual TOP: Scarcity 5. Who faces the problem of scarcity? a. Only the rich b. Only the poor c. Only people living next to wealthy people d. Everyone e. Only people living next to poor people ANS: D PTS: 1 DIF: moderate OBJ: factual TOP: Scarcity 6. A resource is not scarce if a. there is more of this resource than people want. b. it can be found in any store. c. people have enough money to pay for it. d. it has a low opportunity cost. e. its supply exceeds its demand. buy this full document at http://test-bank.us ECONOMICS 102 buy this full document at http://test-bank.us ANS: A PTS: 1 DIF: moderate OBJ: factual TOP: Scarcity 7. If a resource is always available when needed, then it a. will be more expensive than other resources. b. is not scarce. c. has a high opportunity cost. d. is not tangible. e. is scarce. ANS: B PTS: 1 DIF: basic OBJ: factual TOP: Scarcity 8. An important implication of scarcity is that a. it inhibits economic interaction. b. people are not able to use all the available resources. c. people must make a choice. d. people will always be poor. e. it is a problem that is easily abolished. ANS: C PTS: 1 DIF: moderate OBJ: conceptual TOP: Scarcity 9. Economics is a study of a. choices and interactions among people when resources are scarce. b. how to overcome scarcity. c. how to make choices and interact in order to avoid scarcity. d. how to avoid scarcity by making choices. e. how to make money in stock markets. ANS: A PTS: 1 DIF: moderate OBJ: factual TOP: Economics 10. Economics deals with how a. individuals make decisions to use scarce resources in order to satisfy their unlimited wants. b. to run a business. c. individuals become rich. d. society can eliminate scarcity. e. society creates more resources in order to raise its standard of living. ANS: A PTS: 1 DIF: moderate OBJ: factual TOP: Economics 11. The reason, from an economic perspective, people are forced to choose is because of a. social custom. b. genetics. c. scarcity. d. government. e. religion. ANS: C PTS: 1 DIF: basic OBJ: conceptual TOP: Scarcity 12. Which of the following statements about economic interaction is not true? a. It is a fact of economic life. b. It requires a market. c. It can occur within a family. d. It makes our lives better. e. It occurs only among different countries. buy this full document at http://test-bank.us buy this full document at http://test-bank.us ANS: E PTS: 1 DIF: moderate OBJ: conceptual TOP: Economic Interaction 13. Where do buyers and sellers meet? a. In a government b. Only in a face-to-face forum c. In a family d. In a market e. In a firm ANS: D PTS: 1 DIF: moderate OBJ: factual TOP: Organizations 14. A market is a. a place where firms meet to set prices. b. an arrangement by which economic exchanges take place. c. an organization controlled by a government. d. a place where goods are produced. e. anywhere people come close to each other. ANS: B PTS: 1 DIF: basic OBJ: factual TOP: Market 15. T or F. Economics is the study of how individuals become wealthy. ANS: F PTS: 1 DIF: moderate OBJ: factual TOP: Economics 16. T or F. Scarcity applies to everyone regardless of income. ANS: T PTS: 1 DIF: moderate OBJ: conceptual TOP: Scarcity 17. T or F. Choices are made in order to avoid scarcity. ANS: F PTS: 1 DIF: moderate OBJ: conceptual TOP: Scarcity 18. T or F. An economic transaction occurs only in a market ANS: T PTS: 1 DIF: basic OBJ: factual TOP: Economic Interaction 19. A budget constraint a. does not occur if there is scarcity. b. enables choices to be avoided. c. is a way to overcome scarcity. d. forces people to make choices. e. prohibits consumers from spending. ANS: D PTS: 1 DIF: moderate OBJ: conceptual TOP: Budget Constraint 20. People make decisions when choices involve a. no benefits. b. only benefits. c. nominal costs. d. opportunity costs. e. unlimited resources. ANS: D PTS: 1 DIF: moderate OBJ: conceptual TOP: Opportunity Cost 21. Choices are made based on a. scarcity. buy this full document at http://test-b [Show Less]