Test Bank for The Macro Economy Today, 15e (Schiller)

Chapter 1 Economics: The Core Issues 1) Which of the following is not one of the three core economic issues that must be resolved? A) How to produce the goods and services we select. B) What to produce with unlimited resources. C) Who should get the goods and services we produce. D) What to produce with limited resources. Answer: B Difficulty: 2 Medium Topic: Scarcity: The Core Problem Learning Objective: 01-04 The three core economic questions that every society must answer. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation 2) The fundamental problem of economics is A) The law of increasing opportunity costs. B) The scarcity of resources relative to human wants. C) How to get government to operate efficiently. D) How to create employment for everyone. Answer: B Difficulty: 1 Easy Topic: Scarcity: The Core Problem Learning Objective: 01-01 What scarcity is. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 3) In economics, scarcity means that A) A shortage of a particular good will cause the price to fall. B) A production possibilities curve cannot accurately represent the trade-off between two goods. C) Society's desires exceed resources available. D) The market mechanism has failed. Answer: C Difficulty: 1 Easy Topic: Scarcity: The Core Problem Learning Objective: 01-01 What scarcity is. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation