Test Bank for Principles of Microeconomics 8th Edition Mankiw

1. The English word that comes from the Greek word for "one who manages a household" is
a. market.
b. consumer.
c. producer.
d. economy.
ANSWER: d
DIFFICULTY: Easy
LEARNING OBJE ECON.MANK.012 - Apply basic, economic principles of individual decision making that
CTIVES: determine how an economy generally works.
TOPICS: Economic thinking
KEYWORDS: BLOOM'S: Knowledge
CUSTOM ID: 001.01.0 - MC - MANK08

2. The word “economy” comes from the Greek word oikonomos, which means
a. “environment.”
b. “production.”
c. “one who manages a household.”
d. “one who makes decisions.”
ANSWER: c
DIFFICULTY: Easy
LEARNING OBJE ECON.MANK.012 - Apply basic, economic principles of individual decision making that
CTIVES: determine how an economy generally works.
TOPICS: Economic thinking
KEYWORDS: BLOOM'S: Knowledge
CUSTOM ID: 002.01.0 - MC - MANK08

3. 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
DIFFICULTY: Easy
LEARNING OBJE ECON.MANK.012 - Apply basic, economic principles of individual decision making that
CTIVES: determine how an economy generally works.
TOPICS: Economic thinking
Scarcity
KEYWORDS: BLOOM'S: Comprehension
CUSTOM ID: 003.01.0 - MC - MANK08

4. In considering how to allocate its scarce resources among its various members, a household considers
a. each member’s abilities.
b. each member’s efforts.
c. each member’s desires.
d. All of the above are correct.
ANSWER: d

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, DIFFICULTY: Easy
LEARNING OBJE ECON.MANK.012 - Apply basic, economic principles of individual decision making that
CTIVES: determine how an economy generally works.
TOPICS: Economic thinking
Scarcity
KEYWORDS: BLOOM'S: Comprehension
CUSTOM ID: 004.01.0 - MC - MANK08

5. Fundamentally, economics deals with
a. scarcity.
b. money.
c. poverty.
d. banking.
ANSWER: a
DIFFICULTY: Easy
LEARNING OBJE ECON.MANK.012 - Apply basic, economic principles of individual decision making that
CTIVES: determine how an economy generally works.
TOPICS: Economic thinking
Scarcity
KEYWORDS: BLOOM'S: Knowledge
CUSTOM ID: 005.01.0 - MC - MANK08

6. Which of the following is correct?
a. The word economy comes from the Greek word for “rational thinker.”
b. Economists study the management of scarce resources.
c. Because economists believe that people pursue their best interests, they are not interested in how people
interact.
d. All of the above are correct.
ANSWER: b
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.024 - Classify the different functions an economist may serve.
TOPICS: Economic thinking
Scarcity
KEYWORDS: BLOOM'S: Knowledge
CUSTOM ID: 006.01.0 - MC - MANK08

7. 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
DIFFICULTY: Moderate
LEARNING OBJE ECON.MANK.012 - Apply basic, economic principles of individual decision making that
CTIVES: determine how an economy generally works.
TOPICS: Economic thinking
Scarcity
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