Chapter 01 Testbank
n n
Student: n
1. Economicsnisnbestndefinednasnthenstudynof
A. pricesnandnquantities.
B. inflation nandninterestnrates.
C.
how npeoplenmakenchoicesnundernthenconditionsnof nscarcity.
D. wagesnandnincomes.
2. Economicnquestionsnalwaysndeal nwith
A. financial nmatters.
B. political nmatters.
C. insufficientnresources.
D.
choicesnin nthenfacenof nlimitednresources.
,3. Thenrangenof ntopicsnornissuesnthatnfitnwithin nthendefinition nof neconomicsnis
A. limitedntonmarketnactivities,ne.g.,nbuyingnsoap.
B. limitedntonindividualsnandnfirms.
C. extremelynwide,nrequiringnonlynthenideasnof nchoicenandnscarcity.
D. verynlimited.
4. Thencentral nconcern nof neconomicsnis
A. poverty.
B. scarcity.
C. wealth naccumulation.
D. overconsumption.
5. Thenscarcitynprinciplenindicatesnthat
A. nonmatternhow nmuch nonenhas,nitnisnnevernenough.
B. comparednton100nyearsnago,nindividualsnhavenlessntimentoday.
C. with nlimitednresources,nhavingnmorenofn"this"nmeansnhavingnlessnof n"that."
D. becausentradeoffsnmustnbenmade,nresourcesnarenthereforenscarce.
,6. Thenlogical nimplication nof nthenscarcitynprinciplenisnthat
A. onenwill nnevernbensatisfiednwith nwhatnonenhas.
B. asnwealth nincreases,nmakingntradeoffsnbecomesnlessnnecessary.
C. asnwealth ndecreases,nmakingntradeoffsnbecomesnlessnnecessary.
D. choicesnmustnbenmade.
7. If nall nthenworld'snresourcesnwerentonmagicallynincreasen100nfold,nthen
A. thenscarcitynprinciplenwouldnstill ngovern nbehavior.
B. economicsnwouldnnonlongernbenrelevant.
C. thenscarcitynprinciplenwouldndisappear.
D. tradeoffsnwouldnbecomenunnecessary.
8. Thenprinciplenof nscarcitynappliesnto
A. thenpoornexclusively.
B. allnconsumers.
C. allnfirms.
D. everyone;nconsumers,nfirms,ngovernments,nandnnations.
, 9. Atnthenverynleast,npoornandnwealthynindividualsnarenidenticallynlimitednby
A. theirnwealth.
B. then24nhoursnthatncomprisenanday.
C. theirnknowledge.
D. theirninfluence.
10. Forestnisnanmountain nman nlivingnin ncompletenisolation.nHenisncompletelynself-
sufficientnthroughnhunting,nfishing,nandnfarming.nHenhasnnotnbeenninnthencityntonbuynanythingninnfive
n years.nOnencan ninfer
A. thenscarcitynprinciplendoesnnotnapplyntonForest.
B. Forestnisnnotnrequiredntonmakenchoices.
C. thenscarcitynprinciplenstill nappliesnbecausenmorenhuntingnmeansnlessnfishingnandnfarming.
D. Forestnisnverynsatisfied.
11. Thenscarcitynprinciplenappliesnto
A. allndecisions.
B. onlynmarketndecisions,ne.g.,nbuyingnancar.
C. onlynnon-marketndecisions,ne.g.,nwatchingnansunset.
D. onlynthenpoor.
n n
Student: n
1. Economicsnisnbestndefinednasnthenstudynof
A. pricesnandnquantities.
B. inflation nandninterestnrates.
C.
how npeoplenmakenchoicesnundernthenconditionsnof nscarcity.
D. wagesnandnincomes.
2. Economicnquestionsnalwaysndeal nwith
A. financial nmatters.
B. political nmatters.
C. insufficientnresources.
D.
choicesnin nthenfacenof nlimitednresources.
,3. Thenrangenof ntopicsnornissuesnthatnfitnwithin nthendefinition nof neconomicsnis
A. limitedntonmarketnactivities,ne.g.,nbuyingnsoap.
B. limitedntonindividualsnandnfirms.
C. extremelynwide,nrequiringnonlynthenideasnof nchoicenandnscarcity.
D. verynlimited.
4. Thencentral nconcern nof neconomicsnis
A. poverty.
B. scarcity.
C. wealth naccumulation.
D. overconsumption.
5. Thenscarcitynprinciplenindicatesnthat
A. nonmatternhow nmuch nonenhas,nitnisnnevernenough.
B. comparednton100nyearsnago,nindividualsnhavenlessntimentoday.
C. with nlimitednresources,nhavingnmorenofn"this"nmeansnhavingnlessnof n"that."
D. becausentradeoffsnmustnbenmade,nresourcesnarenthereforenscarce.
,6. Thenlogical nimplication nof nthenscarcitynprinciplenisnthat
A. onenwill nnevernbensatisfiednwith nwhatnonenhas.
B. asnwealth nincreases,nmakingntradeoffsnbecomesnlessnnecessary.
C. asnwealth ndecreases,nmakingntradeoffsnbecomesnlessnnecessary.
D. choicesnmustnbenmade.
7. If nall nthenworld'snresourcesnwerentonmagicallynincreasen100nfold,nthen
A. thenscarcitynprinciplenwouldnstill ngovern nbehavior.
B. economicsnwouldnnonlongernbenrelevant.
C. thenscarcitynprinciplenwouldndisappear.
D. tradeoffsnwouldnbecomenunnecessary.
8. Thenprinciplenof nscarcitynappliesnto
A. thenpoornexclusively.
B. allnconsumers.
C. allnfirms.
D. everyone;nconsumers,nfirms,ngovernments,nandnnations.
, 9. Atnthenverynleast,npoornandnwealthynindividualsnarenidenticallynlimitednby
A. theirnwealth.
B. then24nhoursnthatncomprisenanday.
C. theirnknowledge.
D. theirninfluence.
10. Forestnisnanmountain nman nlivingnin ncompletenisolation.nHenisncompletelynself-
sufficientnthroughnhunting,nfishing,nandnfarming.nHenhasnnotnbeenninnthencityntonbuynanythingninnfive
n years.nOnencan ninfer
A. thenscarcitynprinciplendoesnnotnapplyntonForest.
B. Forestnisnnotnrequiredntonmakenchoices.
C. thenscarcitynprinciplenstill nappliesnbecausenmorenhuntingnmeansnlessnfishingnandnfarming.
D. Forestnisnverynsatisfied.
11. Thenscarcitynprinciplenappliesnto
A. allndecisions.
B. onlynmarketndecisions,ne.g.,nbuyingnancar.
C. onlynnon-marketndecisions,ne.g.,nwatchingnansunset.
D. onlynthenpoor.
