Finance Chapter 1—These Economic Approach
u u u u
MULTIPLEuCHOICE
1. Whenudoueconomistsumeanuwhenutheseyustateuthoseuaugooduisuscarce?
a. Thesereuisuaushortageuoruinsufficientudemanduofutheseugooduatutheseuexistinguprice.
b. Ituisuimpossibleutouexpandutheseuavailabilityuofutheseugoodubeyondutheseucurrentuamount.
c. Peopleuwilluwantutoubuyumoreuofutheseugooduregardlessuofutheseupriceuofutheseugood.
d. Theseuamountuofutheseugooduthoseupeopleuwouldulikeuexceedsutheseudemandufreelyu
availableufromnature.
ANSWERED:u D PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:u DISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:uWhenuisuEconomicsuAbout?uKEY:u Bloom's:uCom
prehension MSC:u SuggesteduQuiz
2. Economicuchoiceuanducompetitiveubehavioruareutheseuresultuof
a. basicuhumanugreed.
b. poverty.
c. privateuownershipuofuresources.
d. scarcity.
ANSWERED:u D PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:u DISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:uWhenuisuEconomicsuAbout?uKEY:u Bloom's:uCom
prehension MSC:u SuggesteduQuiz
3. JoeuanduEdugoutouaudineruthoseusellsuhamburgersuforu$5uanduhotudogsuforu$3.uTheseyuagreeutousplitutheseul
unchbilluevenly.uEduchoosesuauhotudog.uTheseumarginalucostutouJoeuthesenuofuorderinguauhamburgeruinst
eaduofuauhotudoguis
a. $1.
b. $2.
c. $2.50.
d. $3.
ANSWERED:u A PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:u DISC:uMarginalucostsu&ubenefits
TOP:u TheseuEconomicuWayuofuThinkingu
KEY:u Bloom's:uApplication MSC:u SuggesteduQuiz
4. Theseuexpression,u"Thesere'sunousuchuthinguasuaufreeulunch,"uimpliesuthose
a. everyoneuhasutoupayuforuhisuownulunch.
b. theseupersonuconsuminguaugoodumustualwaysupayuforuit.
c. opportunityucostsuareuincurreduwhenuresourcesuareuusedutouproduceugoodsuanduservices.
d. nouoneuhasutimeuforuaugoodulunchuanymore.
ANSWERED:u C PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:uDISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:u TheseuEconomicuWayuofuThinking
KEY:uBloom's:uComprehension
uMSC:u SuggesteduQuiz
5. Whichuoneuofutheseufollowingustatesuaucentraluelementuofutheseueconomicuwayuofuthinking?
a. Scarceugoodsuareupriceless.
b. Incentivesumatter--
humanuchoiceuisuinfluenceduinupredictableuwaysubyuchangesuinupersonalucostsuandubenefits.
c. Theseurealismuofutheseuassumptionsuisutheseubestutestuofuanueconomicutheseory.
d. Whenudecidinguhowutouallocateutime,utheseuconceptuofuopportunityucostuisumeaningless.
, ANSWERED:u B PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:u DISC:uTheseuroleuofuincentives
TOP:u TheseuEconomicuWayuofuThinkingu
KEY:u Bloom's:uComprehension MSC:u SuggesteduQuiz
6. Whichuofutheseufollowinguisumostuclearlyuconsistentuwithutheseubasicupostulateuofueconomicsu
regardinguthesereactionuofupeopleutouauchangeuinuincentives.
a. Farmersuproduceufewerubushelsuofuwheatuinuresponseutouanuincreaseuinutheseupriceuofuwheat.
b. Peopleuwillubuyumoreumilkuatuaupriceuofu$2uperugallonuthanuatu$1uperugallon.
c. Peopleuwillubuyulessugasuifutheseupriceuofugasuincreasesubyu$.20uperugallon.
d. Peopleuwilluconsumeumoreubeefuifutheseupriceuincreasesufromu$1utou$2uperupound.
ANSWERED:u C PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:u DISC:uTheseuroleuofuincentives
TOP:u TheseuEconomicuWayuofuThinkingu
KEY:u Bloom's:uApplication MSC:u SuggesteduQuiz
7. Whichuoneuofutheseufollowinguisuaupositiveueconomicustatement?
a. Anuincreaseuinutheseuminimumuwageuwillureduceuemployment.
b. Theseuminimumuwageushouldubeuincreased.
c. Socialujusticeuwillubeuservedubyuincreasingutheseuminimumuwage.
d. Thoughtfulupeopleuopposeuanuincreaseuinutheseuminimumuwage.
ANSWERED:u A PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:uDISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:u PositiveuanduNormativeuEconomics
KEY:uBloom's:uComprehension
uMSC:u SuggesteduQuiz
8. Theseubasicudifferenceubetweenufinanceuandumicroeconomicsuisuthose
a. financeuisuconcerneduwithutheseuforestu(aggregateumarkets),uwhileumicroeconomicsisu
concerneduwithutheseuindividualutreesu(subcomponents).
b. financeuisuconcerneduwithupolicyudecisions,uwhileumicroeconomicsuappliesuonlytou
theseory.
c. microeconomicsuisuconcerneduwithutheseuforestu(aggregateumarkets),uwhileufinanceisu
concerneduwithutheseutreesu(subcomponents).
d. opportunityucostuisuapplicableutoufinance,uandutheseufallacyuofucompositionurelatestou
microeconomics.
ANSWERED:u A PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:uDISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:u PitfallsutouAvoiduinuEconomicuThinking
KEY:uBloom's:uComprehension
uMSC:u SuggesteduQuiz
9. Economicuanalysisuassumesuthose
a. individualsuactuonlyuoutuofuselfishumotives.
b. althoughuindividualsuareuatutimesuselfishuanduatutimesuunselfish,uonlyutheseiruselfishu
actionsmayubeupredicted.
c. peopleuareubasicallyuhumanitarian,uandutheseiruactionsuare,utheserefore,uimpossibleutoupredict.
d. changesuinutheseupersonalubenefitsuanducostsuassociateduwithuauchoiceuwilluexertuau
predictableinfluenceuonuhumanubehavior.
ANSWERED:u D PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:u DISC:uUtilityuanduconsumeruchoice
TOP:uWhenuisuEconomicsuAbout?uKEY:u Bloom's:uCom
prehension MSC:u SuggesteduQuiz
,10. Whileuwaitinguinulineutoubuyutwoutacosuatu75ucentsueach,uanduaumediumudrinkuforu80ucents,uJordanu
noticesuthoseutheseurestaurantuhasuauvalueumealucontaininguthreeutacosuanduaumediumudrinkuallufor
$2.50.
ForuJordan,utheseumarginalucostuofupurchasingutheseuthirdutacouwouldube
a. zero.
b. 20ucents.
c. 75ucents.
d. 80ucents.
ANSWERED:u B PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:u DISC:uMarginalucostsu&ubenefits
TOP:u TheseuEconomicuWayuofuThinkingu
KEY:u Bloom's:uApplication MSC:u SuggesteduQuiz
11. AdamuSmithubelieveduthoseuifupeopleuwereufreeutoupursueutheseiruownuinterests,
a. publicuinterestuwouldubeuserveduquiteuwell.
b. lessuwouldubeuproduceduthanuifualtruismuwereutheseuguidinguprinciple.
c. theseyuwouldugenerallyuapplyutheseirutalentsutouunproductiveuactivitiesuthoseuwouldu
generatelittleuvalueutousociety.
d. theseyuwoulduhaveulittleuincentiveutouundertakeuproductiveuactivities.
ANSWERED:u A PTS:u u 1 DIF: Easy NAT:u BUSPROG:uAnalytic
STA:u DISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:uOutstandinguEconomist:uTheseuImportanceuofuAdamuSmith,utheseuFatheseruofuEconomicu
ScienceKEY:u Bloom's:uKnowledge
12. Modernueconomicsuasuaufielduofustudyuisuusuallyuthoughtutouhaveubegunuwith
a. AdamuSmithuandutheseuwritinguofuTheseuWealthuofuNations.
b. DaviduRicardouandutheseuwritinguofuTheseuPrinciplesuofuPoliticaluEconomyuanduTaxation.
c. AristotleuandutheseuwritinguofuPoliticsuanduEthics.
d. MosesuandutheseuTenuCommandments.
ANSWERED:u A PTS:u u 1 DIF: Easy NAT:u BUSPROG:uAnalytic
STA:u DISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:uOutstandinguEconomist:uTheseuImportanceuofuAdamuSmith,utheseuFatheseruofuEconomicu
ScienceKEY:u Bloom's:uKnowledge
13. AccordingutouAdamuSmith,uindividualuself-interest
a. isuaupowerfuluforceuforueconomicuprogressuwhenuituisudirectedubyucompetitiveumarkets.
b. isuaupowerfuluforceuforueconomicuprogressuwhenuindividualsuareuwiselyudirectedubyuaustrongu
centralugovernment.
c. isuaumajorufactoruinuretardingutheseueconomicuprogressuofuhumankind.
d. couldubeueitheseruaupositiveuorunegativeuforceuforueconomicuprogress,udependinguonutheseu
moralinfluencesuofupoliticaluleaders.
ANSWERED:u A PTS:u u 1 DIF: Easy NAT:u BUSPROG:uAnalytic
STA:u DISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:uOutstandinguEconomist:uTheseuImportanceuofuAdamuSmith,utheseuFatheseruofuEconomicu
ScienceKEY:u Bloom's:uKnowledge
14. Theseubasicuingredientsuinuanyueconomicudecisionuare
a. scarcityuanduchoice.
b. surplusesuandushortages.
c. marketupricesuandutheseuuseuofuefficientuproductionumethods.
d. needsuanduwants.
ANSWERED:u A PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
, STA:u DISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:uWhenuisuEconomicsuAbout?u
KEY:u Bloom's:uKnowledge
15. Economicuchoiceuanducompetitiveubehavioruareutheseuresultuof
a. scarcity.
b. poverty.
c. publicuownershipuofuresources.
d. privateuownershipuofuresources.
ANSWERED:u A PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:u DISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:uWhenuisuEconomicsuAbout?u
KEY:u Bloom's:uKnowledge
16. Forutheseutypicalustudent,utakinguanuintroductoryucourseuinueconomicsushould
a. turnutheseustudentuintouanueconomist.
b. teachutheseustudentusolutionsutoumostusocialuproblems.
c. teachutheseustudentuhowutouansweredwerucomplexusocialuquestions.
d. helputheseustudentulearnutourationallyuanalyzeusocialuproblems.
e. Alluofutheseuaboveuareucorrect.
ANSWERED:u D PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:u DISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:uWhenuisuEconomicsuAbout?u
KEY:u Bloom's:uComprehension
17. Whenuausocietyucannotuproduceuallutheseugoodsuanduservicesupeopleuwishutouhave,uituisusaiduthoseut
heseeconomyuisuexperiencing
a. scarcity.
b. shortages.
c. inefficiencies.
d. inequities.
ANSWERED:u A PTS:u u 1 DIF: Easy NAT:u BUSPROG:uAnalytic
STA:u DISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:uWhenuisuEconomicsuAbout?u
KEY:u Bloom's:uKnowledge
18. Byuscientificumethoduweumean
a. theseuuseuofumodernuelectronicutestinguequipmentutouunderstandutheseuworld.
b. theseudispassionateudevelopmentuandutestinguofutheseoriesuaboutuhowutheseuworlduworks.
c. theseuuseuofucontrolledulaboratoryuexperimentsutouunderstandutheseuwayutheseuworlduworks.
d. findinguevidenceutousupportupreconceivedutheseoriesuaboutuhowutheseuworlduworks.
ANSWERED:u B PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:uDISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:u TheseuEconomicuWayuofuThinking KEY:u Bloom's:uComprehension
19. Economistsumakeuassumptionsuinuorderuto
a. mimicutheseumethodologiesuemployedubyuotheseruscientists.
b. minimizeutheseunumberuofuexperimentsuthoseuyieldunouusefuludata.
c. minimizeutheseulikelihooduthoseusomeuaspectuofutheseuproblemuatuhanduisubeinguoverlooked.
d. focusutheseiruthinkinguonutheseuessenceuofutheseuproblemuatuhand.
ANSWERED:u D PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:uDISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:u TheseuEconomicuWayuofuThinking KEY:u Bloom's:uComprehension
u u u u
MULTIPLEuCHOICE
1. Whenudoueconomistsumeanuwhenutheseyustateuthoseuaugooduisuscarce?
a. Thesereuisuaushortageuoruinsufficientudemanduofutheseugooduatutheseuexistinguprice.
b. Ituisuimpossibleutouexpandutheseuavailabilityuofutheseugoodubeyondutheseucurrentuamount.
c. Peopleuwilluwantutoubuyumoreuofutheseugooduregardlessuofutheseupriceuofutheseugood.
d. Theseuamountuofutheseugooduthoseupeopleuwouldulikeuexceedsutheseudemandufreelyu
availableufromnature.
ANSWERED:u D PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:u DISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:uWhenuisuEconomicsuAbout?uKEY:u Bloom's:uCom
prehension MSC:u SuggesteduQuiz
2. Economicuchoiceuanducompetitiveubehavioruareutheseuresultuof
a. basicuhumanugreed.
b. poverty.
c. privateuownershipuofuresources.
d. scarcity.
ANSWERED:u D PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:u DISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:uWhenuisuEconomicsuAbout?uKEY:u Bloom's:uCom
prehension MSC:u SuggesteduQuiz
3. JoeuanduEdugoutouaudineruthoseusellsuhamburgersuforu$5uanduhotudogsuforu$3.uTheseyuagreeutousplitutheseul
unchbilluevenly.uEduchoosesuauhotudog.uTheseumarginalucostutouJoeuthesenuofuorderinguauhamburgeruinst
eaduofuauhotudoguis
a. $1.
b. $2.
c. $2.50.
d. $3.
ANSWERED:u A PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:u DISC:uMarginalucostsu&ubenefits
TOP:u TheseuEconomicuWayuofuThinkingu
KEY:u Bloom's:uApplication MSC:u SuggesteduQuiz
4. Theseuexpression,u"Thesere'sunousuchuthinguasuaufreeulunch,"uimpliesuthose
a. everyoneuhasutoupayuforuhisuownulunch.
b. theseupersonuconsuminguaugoodumustualwaysupayuforuit.
c. opportunityucostsuareuincurreduwhenuresourcesuareuusedutouproduceugoodsuanduservices.
d. nouoneuhasutimeuforuaugoodulunchuanymore.
ANSWERED:u C PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:uDISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:u TheseuEconomicuWayuofuThinking
KEY:uBloom's:uComprehension
uMSC:u SuggesteduQuiz
5. Whichuoneuofutheseufollowingustatesuaucentraluelementuofutheseueconomicuwayuofuthinking?
a. Scarceugoodsuareupriceless.
b. Incentivesumatter--
humanuchoiceuisuinfluenceduinupredictableuwaysubyuchangesuinupersonalucostsuandubenefits.
c. Theseurealismuofutheseuassumptionsuisutheseubestutestuofuanueconomicutheseory.
d. Whenudecidinguhowutouallocateutime,utheseuconceptuofuopportunityucostuisumeaningless.
, ANSWERED:u B PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:u DISC:uTheseuroleuofuincentives
TOP:u TheseuEconomicuWayuofuThinkingu
KEY:u Bloom's:uComprehension MSC:u SuggesteduQuiz
6. Whichuofutheseufollowinguisumostuclearlyuconsistentuwithutheseubasicupostulateuofueconomicsu
regardinguthesereactionuofupeopleutouauchangeuinuincentives.
a. Farmersuproduceufewerubushelsuofuwheatuinuresponseutouanuincreaseuinutheseupriceuofuwheat.
b. Peopleuwillubuyumoreumilkuatuaupriceuofu$2uperugallonuthanuatu$1uperugallon.
c. Peopleuwillubuyulessugasuifutheseupriceuofugasuincreasesubyu$.20uperugallon.
d. Peopleuwilluconsumeumoreubeefuifutheseupriceuincreasesufromu$1utou$2uperupound.
ANSWERED:u C PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:u DISC:uTheseuroleuofuincentives
TOP:u TheseuEconomicuWayuofuThinkingu
KEY:u Bloom's:uApplication MSC:u SuggesteduQuiz
7. Whichuoneuofutheseufollowinguisuaupositiveueconomicustatement?
a. Anuincreaseuinutheseuminimumuwageuwillureduceuemployment.
b. Theseuminimumuwageushouldubeuincreased.
c. Socialujusticeuwillubeuservedubyuincreasingutheseuminimumuwage.
d. Thoughtfulupeopleuopposeuanuincreaseuinutheseuminimumuwage.
ANSWERED:u A PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:uDISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:u PositiveuanduNormativeuEconomics
KEY:uBloom's:uComprehension
uMSC:u SuggesteduQuiz
8. Theseubasicudifferenceubetweenufinanceuandumicroeconomicsuisuthose
a. financeuisuconcerneduwithutheseuforestu(aggregateumarkets),uwhileumicroeconomicsisu
concerneduwithutheseuindividualutreesu(subcomponents).
b. financeuisuconcerneduwithupolicyudecisions,uwhileumicroeconomicsuappliesuonlytou
theseory.
c. microeconomicsuisuconcerneduwithutheseuforestu(aggregateumarkets),uwhileufinanceisu
concerneduwithutheseutreesu(subcomponents).
d. opportunityucostuisuapplicableutoufinance,uandutheseufallacyuofucompositionurelatestou
microeconomics.
ANSWERED:u A PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:uDISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:u PitfallsutouAvoiduinuEconomicuThinking
KEY:uBloom's:uComprehension
uMSC:u SuggesteduQuiz
9. Economicuanalysisuassumesuthose
a. individualsuactuonlyuoutuofuselfishumotives.
b. althoughuindividualsuareuatutimesuselfishuanduatutimesuunselfish,uonlyutheseiruselfishu
actionsmayubeupredicted.
c. peopleuareubasicallyuhumanitarian,uandutheseiruactionsuare,utheserefore,uimpossibleutoupredict.
d. changesuinutheseupersonalubenefitsuanducostsuassociateduwithuauchoiceuwilluexertuau
predictableinfluenceuonuhumanubehavior.
ANSWERED:u D PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:u DISC:uUtilityuanduconsumeruchoice
TOP:uWhenuisuEconomicsuAbout?uKEY:u Bloom's:uCom
prehension MSC:u SuggesteduQuiz
,10. Whileuwaitinguinulineutoubuyutwoutacosuatu75ucentsueach,uanduaumediumudrinkuforu80ucents,uJordanu
noticesuthoseutheseurestaurantuhasuauvalueumealucontaininguthreeutacosuanduaumediumudrinkuallufor
$2.50.
ForuJordan,utheseumarginalucostuofupurchasingutheseuthirdutacouwouldube
a. zero.
b. 20ucents.
c. 75ucents.
d. 80ucents.
ANSWERED:u B PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:u DISC:uMarginalucostsu&ubenefits
TOP:u TheseuEconomicuWayuofuThinkingu
KEY:u Bloom's:uApplication MSC:u SuggesteduQuiz
11. AdamuSmithubelieveduthoseuifupeopleuwereufreeutoupursueutheseiruownuinterests,
a. publicuinterestuwouldubeuserveduquiteuwell.
b. lessuwouldubeuproduceduthanuifualtruismuwereutheseuguidinguprinciple.
c. theseyuwouldugenerallyuapplyutheseirutalentsutouunproductiveuactivitiesuthoseuwouldu
generatelittleuvalueutousociety.
d. theseyuwoulduhaveulittleuincentiveutouundertakeuproductiveuactivities.
ANSWERED:u A PTS:u u 1 DIF: Easy NAT:u BUSPROG:uAnalytic
STA:u DISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:uOutstandinguEconomist:uTheseuImportanceuofuAdamuSmith,utheseuFatheseruofuEconomicu
ScienceKEY:u Bloom's:uKnowledge
12. Modernueconomicsuasuaufielduofustudyuisuusuallyuthoughtutouhaveubegunuwith
a. AdamuSmithuandutheseuwritinguofuTheseuWealthuofuNations.
b. DaviduRicardouandutheseuwritinguofuTheseuPrinciplesuofuPoliticaluEconomyuanduTaxation.
c. AristotleuandutheseuwritinguofuPoliticsuanduEthics.
d. MosesuandutheseuTenuCommandments.
ANSWERED:u A PTS:u u 1 DIF: Easy NAT:u BUSPROG:uAnalytic
STA:u DISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:uOutstandinguEconomist:uTheseuImportanceuofuAdamuSmith,utheseuFatheseruofuEconomicu
ScienceKEY:u Bloom's:uKnowledge
13. AccordingutouAdamuSmith,uindividualuself-interest
a. isuaupowerfuluforceuforueconomicuprogressuwhenuituisudirectedubyucompetitiveumarkets.
b. isuaupowerfuluforceuforueconomicuprogressuwhenuindividualsuareuwiselyudirectedubyuaustrongu
centralugovernment.
c. isuaumajorufactoruinuretardingutheseueconomicuprogressuofuhumankind.
d. couldubeueitheseruaupositiveuorunegativeuforceuforueconomicuprogress,udependinguonutheseu
moralinfluencesuofupoliticaluleaders.
ANSWERED:u A PTS:u u 1 DIF: Easy NAT:u BUSPROG:uAnalytic
STA:u DISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:uOutstandinguEconomist:uTheseuImportanceuofuAdamuSmith,utheseuFatheseruofuEconomicu
ScienceKEY:u Bloom's:uKnowledge
14. Theseubasicuingredientsuinuanyueconomicudecisionuare
a. scarcityuanduchoice.
b. surplusesuandushortages.
c. marketupricesuandutheseuuseuofuefficientuproductionumethods.
d. needsuanduwants.
ANSWERED:u A PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
, STA:u DISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:uWhenuisuEconomicsuAbout?u
KEY:u Bloom's:uKnowledge
15. Economicuchoiceuanducompetitiveubehavioruareutheseuresultuof
a. scarcity.
b. poverty.
c. publicuownershipuofuresources.
d. privateuownershipuofuresources.
ANSWERED:u A PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:u DISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:uWhenuisuEconomicsuAbout?u
KEY:u Bloom's:uKnowledge
16. Forutheseutypicalustudent,utakinguanuintroductoryucourseuinueconomicsushould
a. turnutheseustudentuintouanueconomist.
b. teachutheseustudentusolutionsutoumostusocialuproblems.
c. teachutheseustudentuhowutouansweredwerucomplexusocialuquestions.
d. helputheseustudentulearnutourationallyuanalyzeusocialuproblems.
e. Alluofutheseuaboveuareucorrect.
ANSWERED:u D PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:u DISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:uWhenuisuEconomicsuAbout?u
KEY:u Bloom's:uComprehension
17. Whenuausocietyucannotuproduceuallutheseugoodsuanduservicesupeopleuwishutouhave,uituisusaiduthoseut
heseeconomyuisuexperiencing
a. scarcity.
b. shortages.
c. inefficiencies.
d. inequities.
ANSWERED:u A PTS:u u 1 DIF: Easy NAT:u BUSPROG:uAnalytic
STA:u DISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:uWhenuisuEconomicsuAbout?u
KEY:u Bloom's:uKnowledge
18. Byuscientificumethoduweumean
a. theseuuseuofumodernuelectronicutestinguequipmentutouunderstandutheseuworld.
b. theseudispassionateudevelopmentuandutestinguofutheseoriesuaboutuhowutheseuworlduworks.
c. theseuuseuofucontrolledulaboratoryuexperimentsutouunderstandutheseuwayutheseuworlduworks.
d. findinguevidenceutousupportupreconceivedutheseoriesuaboutuhowutheseuworlduworks.
ANSWERED:u B PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:uDISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:u TheseuEconomicuWayuofuThinking KEY:u Bloom's:uComprehension
19. Economistsumakeuassumptionsuinuorderuto
a. mimicutheseumethodologiesuemployedubyuotheseruscientists.
b. minimizeutheseunumberuofuexperimentsuthoseuyieldunouusefuludata.
c. minimizeutheseulikelihooduthoseusomeuaspectuofutheseuproblemuatuhanduisubeinguoverlooked.
d. focusutheseiruthinkinguonutheseuessenceuofutheseuproblemuatuhand.
ANSWERED:u D PTS:u u 1 DIF: Moderate NAT:u BUSPROG:uAnalytic
STA:uDISC:uScarcity,utradeoffs,uanduopportunityucost
TOP:u TheseuEconomicuWayuofuThinking KEY:u Bloom's:uComprehension
