The Economy Today
17th Edition by
Bradley Schiller,
Karen Gebhardt
(Test Bank All
Chapters 100%
Original Verified, A+
Grade)
,Chapter 1
Student name:__________
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
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.
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.
4) Given that resources are scarce,
A) a "free lunch" is possible, but only for a limited number of people.
B) opportunity costs are experienced whenever choices are made.
C) poor countries must make choices, but rich countries with abundant resources do not
have to make choices.
D) some choices involve opportunity costs while other choices do not.
5) The fact that there are too few resources to satisfy all our wants is attributed to
A) scarcity.
B) greed.
C) shortages.
D) lack of money.
Version 1 1
,Chapter 1
6) There is no such thing as a free lunch because
A) the producer must charge something to cover the cost of production.
B) resources used to produce the lunch could be used to produce other goods and
services.
C) the government must raise taxes to pay for the lunches.
D) no one would pay for lunch anymore if they could get it for free.
7) A consequence of the economic problem of scarcity is that
A) choices must be made about how resources are used.
B) there is never too much of any good or service produced.
C) the production of goods and services must be controlled by the government.
D) the production possibilities curve is bowed outward.
8) The basic factors of production are
A) land, labor, money, and capital.
B) land, labor, money, and inputs.
C) labor and money.
D) land, labor, capital, and entrepreneurship.
9) Factors of production are
A) scarce in every society.
B) scarce only in advanced countries.
C) scarce only in the poorest countries of the world.
D) unlimited in quantity.
10) Which of the following is not a factor of production?
A) The increased speed employees have gained from performing a job for a while.
B) The ethanol refined from corn.
C) The trees in a rainforest.
D) An individual taking out a loan from a bank to finance the purchase of equipment for
their new factory.
Version 1 2
, Chapter 1
11) Which of the following is not a factor of production?
A) a psychiatrist
B) $100,000 cash
C) a bulldozer
D) six thousand acres of farmland
12) With respect to factors of production, which of the following statements is not true?
A) Factors of production are also known as resources.
B) To produce any good or service, it is necessary to have factors of production.
C) Factors of production include land, labor, capital, and entrepreneurship.
D) Only those resources that are privately owned are counted as factors of production.
13) Which of the following is the best example of land?
A) The innovative ideas of a product developer.
B) The training programs required of employees at a company.
C) The trees in a rainforest.
D) The blast furnaces used to produce steel.
14) Which of the following is the best example of land?
A) the ethanol refined from corn
B) a factory that produces new goods and services
C) the water used to make a soft drink
D) a barber's chair
15) Capital, as economists use the term, refers to
A) the cash needed to start a new business.
B) the costs of operating a business.
C) shares of stock issued by businesses.
D) final goods that are used to produce other goods and services.
Version 1 3
17th Edition by
Bradley Schiller,
Karen Gebhardt
(Test Bank All
Chapters 100%
Original Verified, A+
Grade)
,Chapter 1
Student name:__________
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
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.
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.
4) Given that resources are scarce,
A) a "free lunch" is possible, but only for a limited number of people.
B) opportunity costs are experienced whenever choices are made.
C) poor countries must make choices, but rich countries with abundant resources do not
have to make choices.
D) some choices involve opportunity costs while other choices do not.
5) The fact that there are too few resources to satisfy all our wants is attributed to
A) scarcity.
B) greed.
C) shortages.
D) lack of money.
Version 1 1
,Chapter 1
6) There is no such thing as a free lunch because
A) the producer must charge something to cover the cost of production.
B) resources used to produce the lunch could be used to produce other goods and
services.
C) the government must raise taxes to pay for the lunches.
D) no one would pay for lunch anymore if they could get it for free.
7) A consequence of the economic problem of scarcity is that
A) choices must be made about how resources are used.
B) there is never too much of any good or service produced.
C) the production of goods and services must be controlled by the government.
D) the production possibilities curve is bowed outward.
8) The basic factors of production are
A) land, labor, money, and capital.
B) land, labor, money, and inputs.
C) labor and money.
D) land, labor, capital, and entrepreneurship.
9) Factors of production are
A) scarce in every society.
B) scarce only in advanced countries.
C) scarce only in the poorest countries of the world.
D) unlimited in quantity.
10) Which of the following is not a factor of production?
A) The increased speed employees have gained from performing a job for a while.
B) The ethanol refined from corn.
C) The trees in a rainforest.
D) An individual taking out a loan from a bank to finance the purchase of equipment for
their new factory.
Version 1 2
, Chapter 1
11) Which of the following is not a factor of production?
A) a psychiatrist
B) $100,000 cash
C) a bulldozer
D) six thousand acres of farmland
12) With respect to factors of production, which of the following statements is not true?
A) Factors of production are also known as resources.
B) To produce any good or service, it is necessary to have factors of production.
C) Factors of production include land, labor, capital, and entrepreneurship.
D) Only those resources that are privately owned are counted as factors of production.
13) Which of the following is the best example of land?
A) The innovative ideas of a product developer.
B) The training programs required of employees at a company.
C) The trees in a rainforest.
D) The blast furnaces used to produce steel.
14) Which of the following is the best example of land?
A) the ethanol refined from corn
B) a factory that produces new goods and services
C) the water used to make a soft drink
D) a barber's chair
15) Capital, as economists use the term, refers to
A) the cash needed to start a new business.
B) the costs of operating a business.
C) shares of stock issued by businesses.
D) final goods that are used to produce other goods and services.
Version 1 3
