Test Bank for Microeconomics, 17th Canadian Edition By Christopher Ragan| 9780137324644| All Chapters| LATEST

TEST BANK
RAGAN MICROECONOMICS

,Microeconomics - canadian edition, 17e (ragan)
chapter 1 economic issues and concepts

1.1 What is economics?

1) Which of the following statements provides the best definition of economics?
A) The study of the most equitable distribution of scarce resources.
B) The study of the use of scarce resources to satisfy unlimited human wants.
C) The study of the production of goods and services.
D) The study of the productive capacity of a nation's factors of production.
E) The study of production and increasing its efficiency.
Ans: b
Diff: 1 type: mc
Topic: 1.1a.
Economics/resourcesskill: recall
Learning obj.: 1-1 explain the importance of scarcity, choice, and opportunity cost, and how
each is illustrated by the production possibilities boundary.
Category: qualitative

2) Society's resources are often divided into broad categories. They are
A) Goods and services.
B) Factors of consumption.
C) Land, labour, and capital.
D) Population and natural resources.
E) Tangible commodities and intangible
commodities.Ans: c
Diff: 1 type: mc
Topic: 1.1a.
Economics/resourcesskill: recall
Learning obj.: 1-1 explain the importance of scarcity, choice, and opportunity cost, and how
each is illustrated by the production possibilities boundary.
Category: qualitative




1
Copyright © 2020 Pearson Canada Inc.

,3) Consider the following list: a worker with training in video gaming technology, 10 hectares of
arable land in southern ontario, a fishing trawler in nova scotia, an ice-cream truck at a park in
quebec. Each of these is an example of
A) A factor of production.
B) A capital resource.
C) A commodity.
D) Goods and services.
E) An economic
service.Ans: a
Diff: 1 type: mc
Topic: 1.1a.
Economics/resourcesskill:
applied
Learning obj.: 1-1 explain the importance of scarcity, choice, and opportunity cost, and how
each is illustrated by the production possibilities boundary.
Category: qualitative

4) Which of the following is not considered a "factor of production" in economics?
A) The espresso machine at your local cafe
B) The barista who makes the coffee
C) The espresso drink you purchase
D) The wood stir sticks
E) The land on which the cafe
sitsans: c
Diff: 2 type: mc
Topic: 1.1a.
Economics/resourcesskill:
applied
Learning obj.: 1-1 explain the importance of scarcity, choice, and opportunity cost, and how
each is illustrated by the production possibilities boundary.
Category: qualitative




2
Copyright © 2020 Pearson Canada Inc.

, 5) Consider the following factors of production:
- A pharmaceutical research centre
- A hairstylist's scissors
- Google headquarters
- A cloud computing system
- A stapler at a checkout
counter.Each of these is an
example of
A) Land.
B) Goods.
C) Services.
D) Capital.
E) Labour.
Ans: d
Diff: 2 type: mc
Topic: 1.1a.
Economics/resourcesskill:
applied
Learning obj.: 1-1 explain the importance of scarcity, choice, and opportunity cost, and how
each is illustrated by the production possibilities boundary.
Category: qualitative

6) In economics, what word is used to describe the act of using goods or services to satisfy
wants?
A) Consumption
B) Production
C) Purchasing power
D) Investment
E) Shoppin
gans: a
Diff: 2 type: mc
Topic: 1.1a.
Economics/resourcesskill: recall
Learning obj.: 1-1 explain the importance of scarcity, choice, and opportunity cost, and how
each is illustrated by the production possibilities boundary.
Category: qualitative




3
Copyright © 2020 Pearson Canada Inc.