Issues in Economics
Today 10th Edition
By Robert Guell
(Test Bank All
Chapters 100%
Original Verified, A+
Grade)
,Chapter 1
Student name:__________
1) Economics is the study of
A) how much people should buy and the prices they should be willing to pay.
B) how much people should sell and the prices they should be willing to accept.
C) the allocation of the world’s freely available resources and who should get them.
D) the allocation and use of scarce resources to satisfy unlimited human wants.
2) The one word in the definition of economics that focuses on the fact that it is impossible to
provide all of the goods and services that everyone wants is
A) scarcity.
B) resources.
C) study.
D) allocation.
3) The one word in the definition of economics that focuses on the fact that we have to make
choices about who gets what and how much is
A) scarcity.
B) resources.
C) study.
D) allocation.
4) Economists focus on "unlimited human wants" rather than _________, to describe our
pursuit of goods and services.
A) needs
B) prices
C) output
D) physical requirements
5) Scarcity implies that the allocation scheme chosen by society
A) cannot make more of any one good.
B) can typically make more of a good but at the expense of making less of another.
C) can always make more of all goods, simultaneously.
D) must make less of all goods.
Version 1 1
,Chapter 1
6) A production possibilities frontier models
A) the choices we make in setting prices.
B) the choices we make in setting output alternatives.
C) the choices we make in setting wages.
D) the choices we make in setting incomes.
7) A production possibilities frontier is a simple model of
A) scarcity and allocation.
B) prices and output.
C) production and costs.
D) inputs and outputs.
8) A simplifying assumption is typically made so as to
A) make a point clearer by stripping away excess detail.
B) make a point clearer by adding sufficient detail to get things precise.
C) divert attention from the real problem.
D) make things look better than they really are.
9) Something is scarce as long as
A) there is a price that the market puts on the item.
B) there is no freely available infinite source of the item.
C) the government provides it.
D) the market provides it.
10) A resource
A) must come from the earth.
B) only includes physical things.
C) is anything that we consume directly or use to make things we will ultimately
consume.
D) must come from the earth and is anything that we consume directly or use to make
things we will ultimately consume.
Version 1 2
, Chapter 1
11) The underlying reason that there are unattainable points on a production possibilities frontier
is that there
A) is government.
B) are always choices that have to be made.
C) is a scarcity of resources within a fixed level of technology.
D) is unemployment of resources.
12) The underlying reason production possibilities frontiers are likely to be bowed out (rather
than linear) is
A) choices have consequences.
B) there is always opportunity costs.
C) some resources and people can be better used producing one good rather than another.
D) there is always some level of unemployment.
13) The optimization assumption suggests that people make
A) irrational decisions.
B) unpredictable decisions.
C) decisions to make themselves as well off as possible.
D) decisions without thinking very hard.
14) The fact that we are operating at a point inside a bowed out production possibilities frontier
indicates there is
A) scarcity.
B) constant opportunity cost.
C) unemployment.
D) increasing opportunity cost.
15) The fact that we cannot operate at a point outside a production possibilities frontier indicates
there is
A) scarcity.
B) constant opportunity cost.
C) unemployment.
D) increasing opportunity cost.
Version 1 3
Today 10th Edition
By Robert Guell
(Test Bank All
Chapters 100%
Original Verified, A+
Grade)
,Chapter 1
Student name:__________
1) Economics is the study of
A) how much people should buy and the prices they should be willing to pay.
B) how much people should sell and the prices they should be willing to accept.
C) the allocation of the world’s freely available resources and who should get them.
D) the allocation and use of scarce resources to satisfy unlimited human wants.
2) The one word in the definition of economics that focuses on the fact that it is impossible to
provide all of the goods and services that everyone wants is
A) scarcity.
B) resources.
C) study.
D) allocation.
3) The one word in the definition of economics that focuses on the fact that we have to make
choices about who gets what and how much is
A) scarcity.
B) resources.
C) study.
D) allocation.
4) Economists focus on "unlimited human wants" rather than _________, to describe our
pursuit of goods and services.
A) needs
B) prices
C) output
D) physical requirements
5) Scarcity implies that the allocation scheme chosen by society
A) cannot make more of any one good.
B) can typically make more of a good but at the expense of making less of another.
C) can always make more of all goods, simultaneously.
D) must make less of all goods.
Version 1 1
,Chapter 1
6) A production possibilities frontier models
A) the choices we make in setting prices.
B) the choices we make in setting output alternatives.
C) the choices we make in setting wages.
D) the choices we make in setting incomes.
7) A production possibilities frontier is a simple model of
A) scarcity and allocation.
B) prices and output.
C) production and costs.
D) inputs and outputs.
8) A simplifying assumption is typically made so as to
A) make a point clearer by stripping away excess detail.
B) make a point clearer by adding sufficient detail to get things precise.
C) divert attention from the real problem.
D) make things look better than they really are.
9) Something is scarce as long as
A) there is a price that the market puts on the item.
B) there is no freely available infinite source of the item.
C) the government provides it.
D) the market provides it.
10) A resource
A) must come from the earth.
B) only includes physical things.
C) is anything that we consume directly or use to make things we will ultimately
consume.
D) must come from the earth and is anything that we consume directly or use to make
things we will ultimately consume.
Version 1 2
, Chapter 1
11) The underlying reason that there are unattainable points on a production possibilities frontier
is that there
A) is government.
B) are always choices that have to be made.
C) is a scarcity of resources within a fixed level of technology.
D) is unemployment of resources.
12) The underlying reason production possibilities frontiers are likely to be bowed out (rather
than linear) is
A) choices have consequences.
B) there is always opportunity costs.
C) some resources and people can be better used producing one good rather than another.
D) there is always some level of unemployment.
13) The optimization assumption suggests that people make
A) irrational decisions.
B) unpredictable decisions.
C) decisions to make themselves as well off as possible.
D) decisions without thinking very hard.
14) The fact that we are operating at a point inside a bowed out production possibilities frontier
indicates there is
A) scarcity.
B) constant opportunity cost.
C) unemployment.
D) increasing opportunity cost.
15) The fact that we cannot operate at a point outside a production possibilities frontier indicates
there is
A) scarcity.
B) constant opportunity cost.
C) unemployment.
D) increasing opportunity cost.
Version 1 3
