TEST BANK for Essentials of Economics 9th edition by N. Gregory Mankiw All Chapters 1 - 24 Complete Guide Latest verified A+

1. Ten Principles of Economics.
h h h h




1. ThehEnglishhwordhthathcomeshfromhthehGreekhwordhforh"onehwhohmanageshahhousehold"his
a. market.
b. consumer.
c. producer.
d. economy.
ANSWER: d
DIFFICULTY: Easy
LEARNINGhOBJECTIVES:h ECON.MANK.012h-
hApplyhbasic,heconomichprincipleshofhindividualhdecisionh makinghthathdetermi

nehhowhanheconomyhgenerallyhworks.
TOPICS: Economichthinking
KEYWORDS: BLOOM'S:hKnowledge
CUSTOMhID: 001.01.0h-hMCh-hMANK08


2. Thehwordh“economy”hcomeshfromhthehGreekhwordhoikonomos,hwhichhmeans
a. “environment.”
b. “production.”
c. “onehwhohmanageshahhousehold.”
d. “onehwhohmakeshdecisions.”
ANSWER: c
DIFFICULTY: Easy
LEARNINGhOBJECTIVES:h ECON.MANK.012h-
hApplyhbasic,heconomichprincipleshofhindividualhdecisionh makinghthathdetermi

nehhowhanheconomyhgenerallyhworks.
TOPICS: Economichthinking
KEYWORDS: BLOOM'S:hKnowledge
CUSTOMhID: 002.01.0h-hMCh-hMANK08
3. Resourceshare
a. scarcehforhhouseholdshbuthplentifulhforheconomies.
b. plentifulhforhhouseholdshbuthscarcehforheconomies.
c. scarcehforhhouseholdshandhscarcehforheconomies.
d. plentifulhforhhouseholdshandhplentifulhforheconomies.
ANSWER: c
DIFFICULTY: Easy
LEARNINGhOBJECTIVES:h ECON.MANK.012h-
hApplyhbasic,heconomichprincipleshofhindividualhdecisionh makinghthathdetermi

nehhowhanheconomyhgenerallyhworks.
TOPICS:
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, Economichthinki
ngh Scarcity
KEYWORDS: BLOOM'S:hComprehension
CUSTOMhID: 003.01.0h-hMCh-hMANK08
4. Inhconsideringhhowhtohallocatehitshscarcehresourceshamonghitshvarioushmembers,hahhouseholdhconsiders




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, a. eachhmember’shabilities.
b. eachhmember’shefforts.
c. eachhmember’shdesires.
d. Allhofhthehaboveharehcorrect.
ANSWER: d
DIFFICULTY: Easy
LEARNINGhOBJECTIVES:h ECON.MANK.012h-
hApplyhbasic,heconomichprincipleshofhindividualhdecisionh makinghthathdetermi

nehhowhanheconomyhgenerallyhworks.
TOPICS:
Economichthinki
ngh Scarcity
KEYWORDS: BLOOM'S:hComprehension
CUSTOMhID: 004.01.0h-hMCh-hMANK08


5. Fundamentally,heconomicshdealshwith
a. scarcity.
b. money.
c. poverty.
d. banking.
ANSWER: a
DIFFICULTY: Easy
LEARNINGhOBJECTIVES:h ECON.MANK.012h-
hApplyhbasic,heconomichprincipleshofhindividualhdecisionh makinghthathdetermi

nehhowhanheconomyhgenerallyhworks.
TOPICS:
Economichthinki
ngh Scarcity
KEYWORDS: BLOOM'S:hKnowledge
CUSTOMhID: 005.01.0h-hMCh-hMANK08


6. Whichhofhthehfollowinghishcorrect?
a. ThehwordheconomyhcomeshfromhthehGreekhwordhforh“rationalhthinker.”
b. Economistshstudyhthehmanagementhofhscarcehresources.
c. Becauseheconomistshbelievehthathpeoplehpursuehtheirhbesthinterests,htheyharehnothintereste
dhinh howhpeoplehinteract.
d. Allhofhthehaboveharehcorrect.
ANSWER: b
DIFFICULTY: Easy
LEARNINGhOBJECTIVES:h ECON.MANK.024h-hClassifyhthehdifferenthfunctionshanheconomisthmayh serve.

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,TOPICS:
Economichthinki
ngh Scarcity
KEYWORDS: BLOOM'S:hKnowledge
CUSTOMhID: 006.01.0h-hMCh-hMANK08




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,7. Thehoverridinghreasonhwhyhhouseholdshandhsocietieshfacehmanyhdecisionshishthat
a. resourcesharehscarce.
b. goodshandhservicesharehnothscarce.
c. incomeshfluctuatehwithhbusinesshcycles.
d. people,hbyhnature,htendhtohdisagree.
ANSWER: a
DIFFICULTY: Moderate
LEARNINGhOBJECTIVES:h ECON.MANK.012h-
hApplyhbasic,heconomichprincipleshofhindividualhdecisionh makinghthathdetermi

nehhowhanheconomyhgenerallyhworks.
TOPICS:
Economichthinki
ngh Scarcity
KEYWORDS: BLOOM'S:hComprehension
CUSTOMhID: 007.01.0h-hMCh-hMANK08


8. Ahsocietyhallocateshitshscarcehresourceshtohvarioushuses.hThesehscarcehresourceshinclude
a. land.
b. people.
c. machines.
d. Allhofhthehaboveharehcorrect.
ANSWER: d
DIFFICULTY: Moderate
LEARNINGhOBJECTIVES:h ECON.MANK.012h-
hApplyhbasic,heconomichprincipleshofhindividualhdecisionh makinghthathdetermi

nehhowhanheconomyhgenerallyhworks.
TOPICS:
Economichthinki
ngh Scarcity
KEYWORDS: BLOOM'S:hComprehension
CUSTOMhID: 008.01.0h-hMCh-hMANK08


9. Thehphenomenonhofhscarcityhstemshfromhthehfacththat
a. mostheconomies’hproductionhmethodsharehnothveryhgood.
b. inhmostheconomies,hwealthyhpeoplehconsumehdisproportionatehquantitieshofhgoodsha
ndh services.
c. governmentshrestricthproductionhofhtoohmanyhgoodshandhservices.
d. resourcesharehlimited.
ANSWER: d
DIFFICULTY: Moderate
LEARNINGhOBJECTIVES:h ECON.MANK.012h-
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, Applyhbasic,heconomichprincipleshofhindividualhdecisionh makinghthathdetermi
h

nehhowhanheconomyhgenerallyhworks.
TOPICS:
Economichthinki
ngh Scarcity
KEYWORDS: BLOOM'S:hComprehension
CUSTOMhID: 009.01.0h-hMCh-hMANK08




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,10. Approximatelyhwhathpercentagehofhthehworld'sheconomieshexperiencehscarcity
?h a.h 10%
b.h40%
c.h 85%
d.h100%
ANSWER: d
DIFFICULTY: Easy
LEARNINGhOBJECTIVES:h ECON.MANK.012h-
hApplyhbasic,heconomichprincipleshofhindividualhdecisionh makinghthathdetermi

nehhowhanheconomyhgenerallyhworks.
TOPICS:
Economichthinki
ngh Scarcity
KEYWORDS: BLOOM'S:hComprehension
CUSTOMhID: 010.01.0h-hMCh-hMANK08


11. Whenhahsocietyhcannothproducehallhthehgoodshandhserviceshpeoplehwishhtohhave,htheheconomyh
ish experiencing
a. scarcity.
b. surpluses.
c. inefficiencies.
d. inequalities.
ANSWER: a
DIFFICULTY: Moderate
LEARNINGhOBJECTIVES:h ECON.MANK.012h-
hApplyhbasic,heconomichprincipleshofhindividualhdecisionh makinghthathdetermi

nehhowhanheconomyhgenerallyhworks.
TOPICS:
Economichthinki
ngh Scarcity
KEYWORDS: BLOOM'S:hComprehension
CUSTOMhID: 011.01.0h-hMCh-hMANK08


12. Whichhofhthehfollowinghproductshwouldhbehconsideredhscarce?
a. bread
b. baseballshautographedhbyhBabehRuth
c. motorcycles
d. Allhofhthehaboveharehcorrect.
ANSWER: d

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0

, DIFFICULTY: Moderate
LEARNINGhOBJECTIVES:h ECON.MANK.012h-
hApplyhbasic,heconomichprincipleshofhindividualhdecisionh makinghthathdetermi

nehhowhanheconomyhgenerallyhworks.
TOPICS:
Economichthinki
ngh Scarcity
KEYWORDS: BLOOM'S:hComprehension




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