Full file at http://testbankinstant.CH/Test-Bank-for-Macroeconomics-A-contemporary-
t t t
introduction-by-William-McEachern,-10e
Chapter 1--TheArt and Science of EconomicAnalysis
t t t t t t t
Student:t
1. Economicstistbesttdefinedtastthetstudytofthowtindividualstdecidettotusetlimitedtresourcestintantattemptttotsatisf
ytunlimitedtwants.
A. True
B. False
2. Economicststudiesthowtdecisiontmakerstusetscarcetresourcesttotsatisfytunlimitedtwants.
A. True
B. False
3. Inteconomics,tmoneytistantexampletoftcapital.
A. True
B. False
4. Profittistthetpaymenttreceivedtbytresourcetownerstfortthetusetofttheirtcapital.
A. True
B. False
5. Renttistthetpaymenttreceivedtbytresourcetownerstfortthetusetofttheirtnaturaltresources.
A. True
B. False
6. Thetfacttthattpeoplethavetunlimitedtwantstmeanstthat
A. theytalwaystwanttmoretoftattleasttonetgood
B. eachtpersonthastantunlimitedtdesiretforteverytgood
C. labortunionstdemandtwagetincreases
D. selfishtpeopletaretnottconcernedtabouttothers
E. peopletbuytgoodstwithouttregardttotwhatttheytcantafford
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7. Thetproblemtoftscarcetresources
A. meanstthattintsometcitiesttheretaretnottenoughtjobs
B. couldtbetsolvedtiftthetunemploymenttratetfell
C. istthatttheretaretnottenoughtresourcesttotsatisfytpeople'stunlimitedtwants
D. istthattresourcestaretusedtinefficiently
E. cantbetsolvedtbytloweringttaxes
8. Scarcitytistbesttdefinedtas
A. unlimitedtresources
B. atshortaget--twhentbuyerstcannottobtaintthetgoodsttheytwant
C. atsurplust--twhentsellerstcannottselltthetgoodsttheytproduce
D. insufficienttresourcesttotsatisfytunlimitedtwants
E. thetprivatetownershiptoftsociety'stresources
9. Scarcity
A. existstbecausetpeoplethavetwantstthattaretunlimitedtrelativettotthetavailabilitytoftresourcesttotsatisfytthosetwant
s
B. appliestwhentatresourcetistnottfreelytavailable
C. meanstthatteachtsocietytandteachtindividualtmusttmaketchoices
D. existstintalltsocieties
E. alltoftthetabovetarettrue
10. Becausetpeople'stwantstaretunlimitedtbuttresourcestaretscarce,
A. onlytthetrichtgetteverythingttheytwant
B. choicestmusttbetmade
C. theretwilltbetmoretservicestproducedtthantgoods
D. peopletsearchtfortspiritualtfulfillmenttrathertthantmaterialtfulfillment
E. poortpeopletnevertgettanythingttheytwant
11. Whichtoftthetfollowingtstatementstregardingtthetbasicteconomictproblemtoftscarcitytistcorrect?
A. Thetproblemtonlytexiststintcountriestthattaretnotthighlytindustrialized.
B. Thetproblemtistlikelyttotdisappeartastproductiontincreases.
C. Thetproblemtistsurettotdisappeartasttechnologytimproves.
D. Thetproblemtwilltexisttastlongtastresourcestaretavailabletintlimitedtamounts.
E. Thetproblemtwilltdisappeartastatperson'stincometfalls.
downloadtfulltfiletatthttp://testbankinstant.com
, Full file at http://testbankinstant.CH/Test-Bank-for-Macroeconomics-A-contemporary-
t t t
introduction-by-William-McEachern,-10e
12. Sometindividualstortfamiliestcantbecometcompletelytsaturatedtwithtatservicetsuchtasttelevision.tThistsugg
eststthat
A. wantstaretlimited
B. desirestfortatsingletcommoditytcantbetsatisfiedtbuttthentthetfocustwilltswitchttotothertgoodstandtservices
C. athighlytproductiveteconomytmaytsomedaytbetablettotsatisfytallthumantdesires
D. resourcestaretnotttrulytfixedtintsupplytastwetgenerallytassume
E. scarcitytdoestnottexist
13. Thetexistencetoftscarcitytastdefinedtbyteconomiststmeanstthat
A. societiestaretinefficientlytorganized
B. peopletaretirrational
C. societiestmusttmaketchoicestofthowttotusettheirtresources
D. resourcestaretnon-renewable
E. peopletaretgreedy
14. Economicstistbesttdefinedtastthetstudytofthow
A. individualstdecidettotusetscarcetresourcestintantattemptttotsatisfyttheirtunlimitedtwants
B. totmaketmoney
C. thetgovernmenttshouldtdealtwithtunemploymenttandtinflation
D. toteliminatetthetproblemtoftscarcetresources
E. totruntatbusiness
15. Economicstistthetstudytof
A. howttotgettrichtbytplayingtthetstocktmarket
B. thetbesttwaysttotreducetpeople'stwants,tgiventthetscarcitytoftresources
C. howtrationaltgovernmenttofficialstdeterminetwhattgoodstshouldtbetproduced
D. moneytandtwhytittistgood
E. howtpeopletusetlimitedtresourcesttottryttotsatisfytunlimitedtwants
16. ‘Whichtoftthetfollowingtistthetbesttdefinitiontofteconomics?
A. Antinvestigationtoftthetquantitiestandtpricestoftthetvarioustgoodstproducedtbytthetnationstoftthetworld.
B. AtstudytoftwhytinflationtandtunemploymenttperiodicallytplaguetthetU.S.teconomy.
C. Antanalysistofthowtindividualstandtsocietiestdealtwithtthetproblemtoftscarcity.
D. Antexaminationtoftthetroletthattmoneytplaystinttheteconomy.
E. Atstudytofthowtgoodstandtservicestaretdistributedtthroughouttthetworld.
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, Full file at http://testbankinstant.CH/Test-Bank-for-Macroeconomics-A-contemporary-
t t t
introduction-by-William-McEachern,-10e
17. Thetstudytofthowtnationstdealtwithtthetproblemtoftscarcitytistthetdomaintof
A. economics
B. politicaltscience
C. sociology
D. politicalteconomy
E. anthropology
18. Economicstistbesttdescribedtastthe
A. studytoftchoicetwhentscarcitytexists
B. studytoftthetproductiontoftgoodstandtservices
C. theorytoftconsumertbehavior
D. sciencetoftmoney
E. arttoftspendingtmoneytwisely
19. Michiganthastantabundanttsupplytoftfreshtwater.tHowever,tanteconomisttwouldtconsidertittatscarcetresourcetbeca
use
A. watertistnecessarytforthumans'tphysicaltsurvival
B. pollutiontwillteventuallytdestroytalltlifetintthetGreattLakes
C. watertistlimitedtrelativettotpeople'stunlimitedtwants
D. watertcommandstatverythightprice
E. naturetcantdestroytwatertastwelltastcreatetit
20. Economics
A. studiesthumantbehaviortwhentscarcitytexiststandtchoicestmusttbetmade
B. providestthetonlytreasonabletexplanationtofthowtpeopletmaketdecisions
C. cantaccuratelytexplaintallthumantbehaviortsincetittistbasedtontthetassumptiontoftrationality
D. istbettertattshowingtthetwaytthingstoughtttotbetthantthetothertsocialtsciencestare
E. istthetonlytsocialtsciencetthattcantexplaintthetexistencetandtbehaviortoftpublictinstitutions
21. Anteconomisttwouldtclassifyt100tsharestoftAppletComputertstocktastcapital.
A. True
B. False
22. Profittistthetpaymenttmadetfortlandtresources.
A. True
B. False
downloadtfulltfiletatthttp://testbankinstant.com
t t t
introduction-by-William-McEachern,-10e
Chapter 1--TheArt and Science of EconomicAnalysis
t t t t t t t
Student:t
1. Economicstistbesttdefinedtastthetstudytofthowtindividualstdecidettotusetlimitedtresourcestintantattemptttotsatisf
ytunlimitedtwants.
A. True
B. False
2. Economicststudiesthowtdecisiontmakerstusetscarcetresourcesttotsatisfytunlimitedtwants.
A. True
B. False
3. Inteconomics,tmoneytistantexampletoftcapital.
A. True
B. False
4. Profittistthetpaymenttreceivedtbytresourcetownerstfortthetusetofttheirtcapital.
A. True
B. False
5. Renttistthetpaymenttreceivedtbytresourcetownerstfortthetusetofttheirtnaturaltresources.
A. True
B. False
6. Thetfacttthattpeoplethavetunlimitedtwantstmeanstthat
A. theytalwaystwanttmoretoftattleasttonetgood
B. eachtpersonthastantunlimitedtdesiretforteverytgood
C. labortunionstdemandtwagetincreases
D. selfishtpeopletaretnottconcernedtabouttothers
E. peopletbuytgoodstwithouttregardttotwhatttheytcantafford
downloadtfulltfiletatthttp://testbankinstant.com
, Full file at http://testbankinstant.CH/Test-Bank-for-Macroeconomics-A-contemporary-
t t t
introduction-by-William-McEachern,-10e
7. Thetproblemtoftscarcetresources
A. meanstthattintsometcitiesttheretaretnottenoughtjobs
B. couldtbetsolvedtiftthetunemploymenttratetfell
C. istthatttheretaretnottenoughtresourcesttotsatisfytpeople'stunlimitedtwants
D. istthattresourcestaretusedtinefficiently
E. cantbetsolvedtbytloweringttaxes
8. Scarcitytistbesttdefinedtas
A. unlimitedtresources
B. atshortaget--twhentbuyerstcannottobtaintthetgoodsttheytwant
C. atsurplust--twhentsellerstcannottselltthetgoodsttheytproduce
D. insufficienttresourcesttotsatisfytunlimitedtwants
E. thetprivatetownershiptoftsociety'stresources
9. Scarcity
A. existstbecausetpeoplethavetwantstthattaretunlimitedtrelativettotthetavailabilitytoftresourcesttotsatisfytthosetwant
s
B. appliestwhentatresourcetistnottfreelytavailable
C. meanstthatteachtsocietytandteachtindividualtmusttmaketchoices
D. existstintalltsocieties
E. alltoftthetabovetarettrue
10. Becausetpeople'stwantstaretunlimitedtbuttresourcestaretscarce,
A. onlytthetrichtgetteverythingttheytwant
B. choicestmusttbetmade
C. theretwilltbetmoretservicestproducedtthantgoods
D. peopletsearchtfortspiritualtfulfillmenttrathertthantmaterialtfulfillment
E. poortpeopletnevertgettanythingttheytwant
11. Whichtoftthetfollowingtstatementstregardingtthetbasicteconomictproblemtoftscarcitytistcorrect?
A. Thetproblemtonlytexiststintcountriestthattaretnotthighlytindustrialized.
B. Thetproblemtistlikelyttotdisappeartastproductiontincreases.
C. Thetproblemtistsurettotdisappeartasttechnologytimproves.
D. Thetproblemtwilltexisttastlongtastresourcestaretavailabletintlimitedtamounts.
E. Thetproblemtwilltdisappeartastatperson'stincometfalls.
downloadtfulltfiletatthttp://testbankinstant.com
, Full file at http://testbankinstant.CH/Test-Bank-for-Macroeconomics-A-contemporary-
t t t
introduction-by-William-McEachern,-10e
12. Sometindividualstortfamiliestcantbecometcompletelytsaturatedtwithtatservicetsuchtasttelevision.tThistsugg
eststthat
A. wantstaretlimited
B. desirestfortatsingletcommoditytcantbetsatisfiedtbuttthentthetfocustwilltswitchttotothertgoodstandtservices
C. athighlytproductiveteconomytmaytsomedaytbetablettotsatisfytallthumantdesires
D. resourcestaretnotttrulytfixedtintsupplytastwetgenerallytassume
E. scarcitytdoestnottexist
13. Thetexistencetoftscarcitytastdefinedtbyteconomiststmeanstthat
A. societiestaretinefficientlytorganized
B. peopletaretirrational
C. societiestmusttmaketchoicestofthowttotusettheirtresources
D. resourcestaretnon-renewable
E. peopletaretgreedy
14. Economicstistbesttdefinedtastthetstudytofthow
A. individualstdecidettotusetscarcetresourcestintantattemptttotsatisfyttheirtunlimitedtwants
B. totmaketmoney
C. thetgovernmenttshouldtdealtwithtunemploymenttandtinflation
D. toteliminatetthetproblemtoftscarcetresources
E. totruntatbusiness
15. Economicstistthetstudytof
A. howttotgettrichtbytplayingtthetstocktmarket
B. thetbesttwaysttotreducetpeople'stwants,tgiventthetscarcitytoftresources
C. howtrationaltgovernmenttofficialstdeterminetwhattgoodstshouldtbetproduced
D. moneytandtwhytittistgood
E. howtpeopletusetlimitedtresourcesttottryttotsatisfytunlimitedtwants
16. ‘Whichtoftthetfollowingtistthetbesttdefinitiontofteconomics?
A. Antinvestigationtoftthetquantitiestandtpricestoftthetvarioustgoodstproducedtbytthetnationstoftthetworld.
B. AtstudytoftwhytinflationtandtunemploymenttperiodicallytplaguetthetU.S.teconomy.
C. Antanalysistofthowtindividualstandtsocietiestdealtwithtthetproblemtoftscarcity.
D. Antexaminationtoftthetroletthattmoneytplaystinttheteconomy.
E. Atstudytofthowtgoodstandtservicestaretdistributedtthroughouttthetworld.
downloadtfulltfiletatthttp://testbankinstant.com
, Full file at http://testbankinstant.CH/Test-Bank-for-Macroeconomics-A-contemporary-
t t t
introduction-by-William-McEachern,-10e
17. Thetstudytofthowtnationstdealtwithtthetproblemtoftscarcitytistthetdomaintof
A. economics
B. politicaltscience
C. sociology
D. politicalteconomy
E. anthropology
18. Economicstistbesttdescribedtastthe
A. studytoftchoicetwhentscarcitytexists
B. studytoftthetproductiontoftgoodstandtservices
C. theorytoftconsumertbehavior
D. sciencetoftmoney
E. arttoftspendingtmoneytwisely
19. Michiganthastantabundanttsupplytoftfreshtwater.tHowever,tanteconomisttwouldtconsidertittatscarcetresourcetbeca
use
A. watertistnecessarytforthumans'tphysicaltsurvival
B. pollutiontwillteventuallytdestroytalltlifetintthetGreattLakes
C. watertistlimitedtrelativettotpeople'stunlimitedtwants
D. watertcommandstatverythightprice
E. naturetcantdestroytwatertastwelltastcreatetit
20. Economics
A. studiesthumantbehaviortwhentscarcitytexiststandtchoicestmusttbetmade
B. providestthetonlytreasonabletexplanationtofthowtpeopletmaketdecisions
C. cantaccuratelytexplaintallthumantbehaviortsincetittistbasedtontthetassumptiontoftrationality
D. istbettertattshowingtthetwaytthingstoughtttotbetthantthetothertsocialtsciencestare
E. istthetonlytsocialtsciencetthattcantexplaintthetexistencetandtbehaviortoftpublictinstitutions
21. Anteconomisttwouldtclassifyt100tsharestoftAppletComputertstocktastcapital.
A. True
B. False
22. Profittistthetpaymenttmadetfortlandtresources.
A. True
B. False
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