Test Bank
Economics Today,
By Roger Leroy Miller
21st Edition
,Economics Today, 21e (Miller)
Chapter 1 The Nature Of
Economics
1.1 The Power Of Economic Analysis
1) The economic way of thinking will help you
A) Make decisions in financing your home.
B) Analyze solutions to economic problems.
C) Make better decisions concerning your education.
D) All of the
above Answer:
d
Diff: 1
Topic: 1.1 the power of economic analysis
Learning outcome: micro-1: identify the basic principles of economics and explain how
to think like an economist
Aacsb: analytical thinking
2) Economic analysis is used
A) Only by instructors and students in economics to understand the world.
B) Only by business people to raise profits.
C) Only by policy makers to make policy decisions.
D) In all decision
making. Answer: d
Diff: 1
Topic: 1.1 the power of economic analysis
Learning outcome: micro-1: identify the basic principles of economics and explain how
to think like an economist
Aacsb: analytical thinking
3) Economic analysis is a tool that
A) Aids all decision making.
B) Helps us understand why people make mistakes.
C) Helps us forgive selfish people.
D) Makes everyone
rich. Answer: a
Diff: 1
Topic: 1.1 the power of economic analysis
Learning outcome: micro-1: identify the basic principles of economics and explain how
to think like an economist
Aacsb: analytical thinking
,4) Economics is best defined as the
A) Study of how people make choices to satisfy their wants.
B) Study of individual self-interests.
C) Study of why people do not react to incentives.
D) Process by which goods are sold in free
markets. Answer: a
Diff: 1
Topic: 1.1 the power of economic analysis
Learning outcome: micro-1: identify the basic principles of economics and explain how
to think like an economist
Aacsb: analytical thinking
5) Economics can be described as the study of how people use resources to satisfy
wants.
A) Unlimited; unlimited
B) Unlimited; limited
C) Limited; unlimited
D) Limited;
limited Answer:
c
Diff: 1
Topic: 1.1 the power of economic analysis
Learning outcome: micro-1: identify the basic principles of economics and explain how
to think like an economist
Aacsb: analytical thinking
6) Which statement most accurately describes economics?
A) Economics is the study of how people make money.
B) Economics is the study of how people make choices to satisfy their wants.
C) Economics is the study of social values a society should choose.
D) Economics is the study of how to eliminate
scarcity. Answer: b
Diff: 1
Topic: 1.1 the power of economic analysis
Learning outcome: micro-1: identify the basic principles of economics and explain how
to think like an economist
Aacsb: analytical thinking
, 7) In economic analysis, people's resources are
A) Limited and their wants are unlimited.
B) Unlimited and their wants are also unlimited.
C) Limited and their wants are also limited.
D) Unlimited and their wants are
limited. Answer: a
Diff: 1
Topic: 1.1 the power of economic analysis
Learning outcome: micro-1: identify the basic principles of economics and explain how
to think like an economist
Aacsb: analytical thinking
8) In economics, items that are used to produce goods and services are known as
A) Wants.
B) Needs.
C) Outputs.
D) Resource
s. Answer:
d diff: 1
Topic: 1.1 the power of economic analysis
Learning outcome: micro-1: identify the basic principles of economics and explain how
to think like an economist
Aacsb: analytical thinking
9) In economics, all the items that people would consume if they had unlimited
income are known as
A) Wants.
B) Aggregates.
C) Outputs.
D) Needs.
Answer: a
diff: 1
Topic: 1.1 the power of economic analysis
Learning outcome: micro-1: identify the basic principles of economics and explain how
to think like an economist
Aacsb: analytical thinking
Economics Today,
By Roger Leroy Miller
21st Edition
,Economics Today, 21e (Miller)
Chapter 1 The Nature Of
Economics
1.1 The Power Of Economic Analysis
1) The economic way of thinking will help you
A) Make decisions in financing your home.
B) Analyze solutions to economic problems.
C) Make better decisions concerning your education.
D) All of the
above Answer:
d
Diff: 1
Topic: 1.1 the power of economic analysis
Learning outcome: micro-1: identify the basic principles of economics and explain how
to think like an economist
Aacsb: analytical thinking
2) Economic analysis is used
A) Only by instructors and students in economics to understand the world.
B) Only by business people to raise profits.
C) Only by policy makers to make policy decisions.
D) In all decision
making. Answer: d
Diff: 1
Topic: 1.1 the power of economic analysis
Learning outcome: micro-1: identify the basic principles of economics and explain how
to think like an economist
Aacsb: analytical thinking
3) Economic analysis is a tool that
A) Aids all decision making.
B) Helps us understand why people make mistakes.
C) Helps us forgive selfish people.
D) Makes everyone
rich. Answer: a
Diff: 1
Topic: 1.1 the power of economic analysis
Learning outcome: micro-1: identify the basic principles of economics and explain how
to think like an economist
Aacsb: analytical thinking
,4) Economics is best defined as the
A) Study of how people make choices to satisfy their wants.
B) Study of individual self-interests.
C) Study of why people do not react to incentives.
D) Process by which goods are sold in free
markets. Answer: a
Diff: 1
Topic: 1.1 the power of economic analysis
Learning outcome: micro-1: identify the basic principles of economics and explain how
to think like an economist
Aacsb: analytical thinking
5) Economics can be described as the study of how people use resources to satisfy
wants.
A) Unlimited; unlimited
B) Unlimited; limited
C) Limited; unlimited
D) Limited;
limited Answer:
c
Diff: 1
Topic: 1.1 the power of economic analysis
Learning outcome: micro-1: identify the basic principles of economics and explain how
to think like an economist
Aacsb: analytical thinking
6) Which statement most accurately describes economics?
A) Economics is the study of how people make money.
B) Economics is the study of how people make choices to satisfy their wants.
C) Economics is the study of social values a society should choose.
D) Economics is the study of how to eliminate
scarcity. Answer: b
Diff: 1
Topic: 1.1 the power of economic analysis
Learning outcome: micro-1: identify the basic principles of economics and explain how
to think like an economist
Aacsb: analytical thinking
, 7) In economic analysis, people's resources are
A) Limited and their wants are unlimited.
B) Unlimited and their wants are also unlimited.
C) Limited and their wants are also limited.
D) Unlimited and their wants are
limited. Answer: a
Diff: 1
Topic: 1.1 the power of economic analysis
Learning outcome: micro-1: identify the basic principles of economics and explain how
to think like an economist
Aacsb: analytical thinking
8) In economics, items that are used to produce goods and services are known as
A) Wants.
B) Needs.
C) Outputs.
D) Resource
s. Answer:
d diff: 1
Topic: 1.1 the power of economic analysis
Learning outcome: micro-1: identify the basic principles of economics and explain how
to think like an economist
Aacsb: analytical thinking
9) In economics, all the items that people would consume if they had unlimited
income are known as
A) Wants.
B) Aggregates.
C) Outputs.
D) Needs.
Answer: a
diff: 1
Topic: 1.1 the power of economic analysis
Learning outcome: micro-1: identify the basic principles of economics and explain how
to think like an economist
Aacsb: analytical thinking
