Finance kChapter k1—These kEconomic kApproach
MULTIPLEkCHOICE
1. When kdo k economistsk mean k when k thesey k statek thosek ak good k isk scarce?
a. Thesere kisk ak shortage k ork insufficientk demand k of k thesek good k atk thesek existingk price.
b. Itk isk impossible k to k expand k thesekavailability k of k thesek good k beyond k thesek currentk amount.
c. People kwillk wantk to k buy k more k of k thesek good k regardlessk of k thesek pricek of k thesek good.
d. Thesek amountkofkthesekgood kthosekpeoplekwouldklikekexceedskthesekdemandkfreely k
available k fromnature.
ANSWERED:k D PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Scarcity,k tradeoffs, k and k opportunity k cost
TOP:kWhen kiskEconomicskAbout?kKEY:k Bloom's:k Com
prehension MSC:k Suggested k Quiz
2. Economic k choicekand k competitive k behaviork arek thesek resultk of
a. basick human k greed.
b. poverty.
c. private kownership kof k resources.
d. scarcity.
ANSWERED:k D PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Scarcity,k tradeoffs, k and k opportunity k cost
TOP:kWhen kiskEconomicskAbout?kKEY:k Bloom's:k Com
prehension MSC:k Suggested k Quiz
3. Joek and kEdkgo ktokakdinerkthoseksellskhamburgerskfork$5kandkhotkdogskfork$3.kTheseykagreektoksplitkthesek l
unchbillkevenly.k Edkchooseskak hotk dog.kThesekmarginalk costk tokJoekthesenkofk orderingk ak hamburgerk inst
ead k of k ak hotk dogk is
a. $1.
b. $2.
c. $2.50.
d. $3.
ANSWERED:k A PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Marginalk costsk &k benefits
TOP:k Thesek EconomickWaykofkThinkingk
KEY:k Bloom's:k Application MSC:k Suggested k Quiz
4. Thesek expression,k"Thesere'sk no ksuch k thingkask ak freek lunch,"k impliesk those
a. everyone k hask to k pay k fork hisk own k lunch.
b. thesek person k consumingk ak good k mustk alwaysk pay k fork it.
c. opportunity kcostsk arek incurred k when kresourcesk arek used kto k produce k goodsk and k services.
d. no k onek hask timek fork ak good k lunch k anymore.
ANSWERED:k C PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Scarcity,k tradeoffs,k and k opportunity k cost
TOP:k Thesek Economic k Way k of k Thinking
KEY:kBloom's:kComprehension
k MSC:k Suggested k Quiz
5. Which konek of k thesek followingk statesk ak centralk elementk of k thesek economic k way k of k thinking?
a. Scarcek goodsk arek priceless.
b. Incentivesk matter--
human kchoicekiskinfluencedkin kpredictablekwayskbykchangeskinkpersonalk costsk and kbenefits.
c. Thesek realismkof k thesek assumptionsk isk thesek bestk testk of k an k economic k theseory.
d. When kdecidingk howk to k allocate ktime,k thesekconceptk of k opportunity k costk isk meaningless.
, ANSWERED:k B PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k These k rolek of k incentives
TOP:k Thesek EconomickWaykofkThinkingk
KEY:k Bloom's:k Comprehension MSC:k Suggested k Quiz
6. Which k ofkthesekfollowingkiskmostkclearlykconsistentkwithkthesekbasickpostulatekofkeconomicsk
regardingk thesereaction k of k people k to k ak changek in k incentives.
a. Farmersk produce k fewerk bushelsk of k wheatk in k response k to k an k increasek in k thesek pricek of k wheat.
b. People kwillk buy k morek milk k atk ak pricek of k $2 k perk gallon k than k atk $1 k perk gallon.
c. People k willk buy klessk gask if k thesek pricek of k gask increasesk by k $.20 k perk gallon.
d. People k willk consume k morek beef k if k thesek pricek increasesk fromk$1 k to k $2 k perk pound.
ANSWERED:k C PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k These k rolek of k incentives
TOP:k Thesek EconomickWaykofkThinkingk
KEY:k Bloom's:k Application MSC:k Suggested k Quiz
7. Which konek of k thesek followingk isk ak positive k economic k statement?
a. An k increase k in kthesek minimum k wagek willk reduce k employment.
b. Thesek minimum kwagek should k bek increased.
c. Socialk justicek willk bek served kby kincreasingkthesek minimum k wage.
d. Thoughtfulk peoplek oppose kan kincrease k in k thesek minimum kwage.
ANSWERED:k A PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Scarcity,k tradeoffs,k and k opportunity k cost
TOP:k Positivek and k Normative k Economics
KEY:kBloom's:kComprehension
k MSC:k Suggested k Quiz
8. Thesekbasickdifference k between kfinance kand kmicroeconomicsk isk those
a. financekiskconcerned kwith kthesekforestk(aggregatekmarkets),kwhilekmicroeconomicsisk
concerned k with k thesek individualk treesk (subcomponents).
b. financekiskconcerned kwith kpolicykdecisions,k whilekmicroeconomicskapplieskonlyto k
theseory.
c. microeconomicskiskconcernedkwith kthesekforestk(aggregatekmarkets),kwhilekfinanceisk
concerned k with k thesek treesk (subcomponents).
d. opportunitykcostkiskapplicablektokfinance,kandkthesekfallacykofkcomposition krelatestok
microeconomics.
ANSWERED:k A PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Scarcity,k tradeoffs,k and k opportunity k cost
TOP:k Pitfallsk to k Avoid k in k Economic k Thinking
KEY:kBloom's:kComprehension
k MSC:k Suggested k Quiz
9. Economic k analysisk assumesk those
a. individualsk actk only k outk of k selfish k motives.
b. although kindividualskarekatktimeskselfish kand katktimeskunselfish,konly ktheseirkselfishk
actionsmay k bek predicted.
c. people karek basically khumanitarian, k and ktheseirkactionsk are,k theserefore, kimpossible kto kpredict.
d. changeskin kthesek personalkbenefitskandkcostskassociated kwith kakchoicekwillkexertkak
predictableinfluence k on k human k behavior.
ANSWERED:k D PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Utility k and k consumerk choice
TOP:kWhen kiskEconomicskAbout?kKEY:k Bloom's:k Com
prehension MSC:k Suggested k Quiz
,10. Whilek waitingkink linektokbuyktwok tacoskatk75kcentsk each,kand kakmediumkdrinkkfork80k cents,k Jordan k
noticesk thosekthesekrestaurantkhaskakvaluekmealkcontainingk threektacoskand kakmediumkdrink k allk for
$2.50.
ForkJordan,k thesek marginalk costk of k purchasingk thesek third k taco k would k be
a. zero.
b. 20 k cents.
c. 75 k cents.
d. 80 k cents.
ANSWERED:k B PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Marginalk costsk &k benefits
TOP:k Thesek EconomickWaykofkThinkingk
KEY:k Bloom's:k Application MSC:k Suggested k Quiz
11. AdamkSmith kbelieved k thosek if k people k werekfreek to k pursue k theseirk own k interests,
a. publick interestk would k bekserved k quitekwell.
b. lessk would k bek produced k than k if k altruismkwerek thesek guidingkprinciple.
c. thesey kwould kgenerallykapply ktheseirktalentsktokunproductivek activitieskthosekwouldk
generatelittle k valuek to k society.
d. thesey kwould k haveklittlekincentive k to k undertake k productive k activities.
ANSWERED:k A PTS:k k 1 DIF: Easy NAT:k BUSPROG:kAnalytic
STA:k DISC:kScarcity,ktradeoffs,kand kopportunity kcost
TOP:k OutstandingkEconomist:kThesekImportance kofkAdamkSmith,kthesekFatheserkofkEconomic k
ScienceKEY:k Bloom's:k Knowledge
12. Modern keconomicsk ask ak field k of k study k isk usually k thoughtk to k havek begun k with
a. AdamkSmith k and kthesek writingk of k ThesekWealth kofkNations.
b. David kRicardo k and k thesek writingkof k ThesekPrincipleskofkPoliticalkEconomy kand kTaxation.
c. Aristotlek and kthesek writingkof k Politicskand kEthics.
d. Mosesk and kthesekTen kCommandments.
ANSWERED:k A PTS:k k 1 DIF: Easy NAT:k BUSPROG:kAnalytic
STA:k DISC:kScarcity,ktradeoffs,kand kopportunity kcost
TOP:k OutstandingkEconomist:kThesekImportance kofkAdamkSmith,kthesekFatheserkofkEconomic k
ScienceKEY:k Bloom's:k Knowledge
13. Accordingkto kAdamkSmith,kindividualk self-interest
a. isk ak powerfulk forcek fork economic k progressk when k itk isk directed k by kcompetitive k markets.
b. isk ak powerfulkforcekfork economickprogresskwhenkindividualskarekwiselykdirected kbykakstrongk
centralk government.
c. isk ak majork factork in k retardingk thesek economic k progressk of k humankind.
d. could kbekeitheserkakpositivekorknegativekforcekforkeconomickprogress,kdependingkonkthesek
moralinfluencesk of k politicalk leaders.
ANSWERED:k A PTS:k k 1 DIF: Easy NAT:k BUSPROG:kAnalytic
STA:k DISC:kScarcity,ktradeoffs,kand kopportunity kcost
TOP:k OutstandingkEconomist:kThesekImportance kofkAdamkSmith,kthesekFatheserkofkEconomic k
ScienceKEY:k Bloom's:k Knowledge
14. Thesek basickingredientsk in k any keconomic k decision k are
a. scarcity k and k choice.
b. surplusesk and k shortages.
c. marketk pricesk and k thesek usekof k efficientk production k methods.
d. needsk and k wants.
ANSWERED:k A PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
, STA:k DISC:k Scarcity,k tradeoffs, k and k opportunity k cost
TOP:kWhen kiskEconomicskAbout?k
KEY:k Bloom's:k Knowledge
15. Economic k choicekand k competitive k behaviork arek thesek resultk of
a. scarcity.
b. poverty.
c. publick ownership k of k resources.
d. private kownership kof k resources.
ANSWERED:k A PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Scarcity,k tradeoffs, k and k opportunity k cost
TOP:kWhen kiskEconomicskAbout?k
KEY:k Bloom's:k Knowledge
16. Fork thesek typicalk student,k takingkan k introductory k course k in keconomicsk should
a. turn kthesek studentk into k an k economist.
b. teach k thesek studentk solutionsk to kmostk socialk problems.
c. teach kthesek studentk howk to kansweredwerk complex k socialk questions.
d. help kthesek studentk learn k to krationally kanalyze k socialk problems.
e. Allk of k thesek abovek arek correct.
ANSWERED:k D PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Scarcity,k tradeoffs, k and k opportunity k cost
TOP:kWhen kiskEconomicskAbout?k
KEY:k Bloom's:k Comprehension
17. When k aksocietykcannotkproducekallkthesekgoodskand kserviceskpeoplekwishkto khave,kitkisksaid kthosekt
heseeconomy k isk experiencing
a. scarcity.
b. shortages.
c. inefficiencies.
d. inequities.
ANSWERED:k A PTS:k k 1 DIF: Easy NAT:k BUSPROG:kAnalytic
STA:k DISC:k Scarcity,k tradeoffs, k and k opportunity k cost
TOP:kWhen kiskEconomicskAbout?k
KEY:k Bloom's:k Knowledge
18. By kscientific k method k wek mean
a. thesekusek of k modern k electronic ktestingkequipmentk to kunderstand k thesek world.
b. thesekdispassionate kdevelopmentk and k testingkof k theseoriesk aboutk howkthesek world k works.
c. thesekusek of k controlled k laboratory kexperimentsk to k understand kthesek way kthesek world kworks.
d. findingkevidence k to ksupportk preconceived k theseoriesk aboutk howkthesek world k works.
ANSWERED:k B PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Scarcity,k tradeoffs,k and k opportunity k cost
TOP:k Thesek Economic kWay kof kThinking KEY:k Bloom's:k Comprehension
19. Economistsk makek assumptionsk in k orderk to
a. mimick thesek methodologieskemployed k by kotheserk scientists.
b. minimize kthesek numberk of k experimentsk thosek yield k no k usefulk data.
c. minimize kthesek likelihood k thosek some k aspectk of k thesek problem k atk hand kisk beingk overlooked.
d. focusk theseirk thinkingk on kthesek essence k of k thesek problem k atk hand.
ANSWERED:k D PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Scarcity,k tradeoffs,k and k opportunity k cost
TOP:k Thesek Economic kWay kof kThinking KEY:k Bloom's:k Comprehension
MULTIPLEkCHOICE
1. When kdo k economistsk mean k when k thesey k statek thosek ak good k isk scarce?
a. Thesere kisk ak shortage k ork insufficientk demand k of k thesek good k atk thesek existingk price.
b. Itk isk impossible k to k expand k thesekavailability k of k thesek good k beyond k thesek currentk amount.
c. People kwillk wantk to k buy k more k of k thesek good k regardlessk of k thesek pricek of k thesek good.
d. Thesek amountkofkthesekgood kthosekpeoplekwouldklikekexceedskthesekdemandkfreely k
available k fromnature.
ANSWERED:k D PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Scarcity,k tradeoffs, k and k opportunity k cost
TOP:kWhen kiskEconomicskAbout?kKEY:k Bloom's:k Com
prehension MSC:k Suggested k Quiz
2. Economic k choicekand k competitive k behaviork arek thesek resultk of
a. basick human k greed.
b. poverty.
c. private kownership kof k resources.
d. scarcity.
ANSWERED:k D PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Scarcity,k tradeoffs, k and k opportunity k cost
TOP:kWhen kiskEconomicskAbout?kKEY:k Bloom's:k Com
prehension MSC:k Suggested k Quiz
3. Joek and kEdkgo ktokakdinerkthoseksellskhamburgerskfork$5kandkhotkdogskfork$3.kTheseykagreektoksplitkthesek l
unchbillkevenly.k Edkchooseskak hotk dog.kThesekmarginalk costk tokJoekthesenkofk orderingk ak hamburgerk inst
ead k of k ak hotk dogk is
a. $1.
b. $2.
c. $2.50.
d. $3.
ANSWERED:k A PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Marginalk costsk &k benefits
TOP:k Thesek EconomickWaykofkThinkingk
KEY:k Bloom's:k Application MSC:k Suggested k Quiz
4. Thesek expression,k"Thesere'sk no ksuch k thingkask ak freek lunch,"k impliesk those
a. everyone k hask to k pay k fork hisk own k lunch.
b. thesek person k consumingk ak good k mustk alwaysk pay k fork it.
c. opportunity kcostsk arek incurred k when kresourcesk arek used kto k produce k goodsk and k services.
d. no k onek hask timek fork ak good k lunch k anymore.
ANSWERED:k C PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Scarcity,k tradeoffs,k and k opportunity k cost
TOP:k Thesek Economic k Way k of k Thinking
KEY:kBloom's:kComprehension
k MSC:k Suggested k Quiz
5. Which konek of k thesek followingk statesk ak centralk elementk of k thesek economic k way k of k thinking?
a. Scarcek goodsk arek priceless.
b. Incentivesk matter--
human kchoicekiskinfluencedkin kpredictablekwayskbykchangeskinkpersonalk costsk and kbenefits.
c. Thesek realismkof k thesek assumptionsk isk thesek bestk testk of k an k economic k theseory.
d. When kdecidingk howk to k allocate ktime,k thesekconceptk of k opportunity k costk isk meaningless.
, ANSWERED:k B PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k These k rolek of k incentives
TOP:k Thesek EconomickWaykofkThinkingk
KEY:k Bloom's:k Comprehension MSC:k Suggested k Quiz
6. Which k ofkthesekfollowingkiskmostkclearlykconsistentkwithkthesekbasickpostulatekofkeconomicsk
regardingk thesereaction k of k people k to k ak changek in k incentives.
a. Farmersk produce k fewerk bushelsk of k wheatk in k response k to k an k increasek in k thesek pricek of k wheat.
b. People kwillk buy k morek milk k atk ak pricek of k $2 k perk gallon k than k atk $1 k perk gallon.
c. People k willk buy klessk gask if k thesek pricek of k gask increasesk by k $.20 k perk gallon.
d. People k willk consume k morek beef k if k thesek pricek increasesk fromk$1 k to k $2 k perk pound.
ANSWERED:k C PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k These k rolek of k incentives
TOP:k Thesek EconomickWaykofkThinkingk
KEY:k Bloom's:k Application MSC:k Suggested k Quiz
7. Which konek of k thesek followingk isk ak positive k economic k statement?
a. An k increase k in kthesek minimum k wagek willk reduce k employment.
b. Thesek minimum kwagek should k bek increased.
c. Socialk justicek willk bek served kby kincreasingkthesek minimum k wage.
d. Thoughtfulk peoplek oppose kan kincrease k in k thesek minimum kwage.
ANSWERED:k A PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Scarcity,k tradeoffs,k and k opportunity k cost
TOP:k Positivek and k Normative k Economics
KEY:kBloom's:kComprehension
k MSC:k Suggested k Quiz
8. Thesekbasickdifference k between kfinance kand kmicroeconomicsk isk those
a. financekiskconcerned kwith kthesekforestk(aggregatekmarkets),kwhilekmicroeconomicsisk
concerned k with k thesek individualk treesk (subcomponents).
b. financekiskconcerned kwith kpolicykdecisions,k whilekmicroeconomicskapplieskonlyto k
theseory.
c. microeconomicskiskconcernedkwith kthesekforestk(aggregatekmarkets),kwhilekfinanceisk
concerned k with k thesek treesk (subcomponents).
d. opportunitykcostkiskapplicablektokfinance,kandkthesekfallacykofkcomposition krelatestok
microeconomics.
ANSWERED:k A PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Scarcity,k tradeoffs,k and k opportunity k cost
TOP:k Pitfallsk to k Avoid k in k Economic k Thinking
KEY:kBloom's:kComprehension
k MSC:k Suggested k Quiz
9. Economic k analysisk assumesk those
a. individualsk actk only k outk of k selfish k motives.
b. although kindividualskarekatktimeskselfish kand katktimeskunselfish,konly ktheseirkselfishk
actionsmay k bek predicted.
c. people karek basically khumanitarian, k and ktheseirkactionsk are,k theserefore, kimpossible kto kpredict.
d. changeskin kthesek personalkbenefitskandkcostskassociated kwith kakchoicekwillkexertkak
predictableinfluence k on k human k behavior.
ANSWERED:k D PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Utility k and k consumerk choice
TOP:kWhen kiskEconomicskAbout?kKEY:k Bloom's:k Com
prehension MSC:k Suggested k Quiz
,10. Whilek waitingkink linektokbuyktwok tacoskatk75kcentsk each,kand kakmediumkdrinkkfork80k cents,k Jordan k
noticesk thosekthesekrestaurantkhaskakvaluekmealkcontainingk threektacoskand kakmediumkdrink k allk for
$2.50.
ForkJordan,k thesek marginalk costk of k purchasingk thesek third k taco k would k be
a. zero.
b. 20 k cents.
c. 75 k cents.
d. 80 k cents.
ANSWERED:k B PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Marginalk costsk &k benefits
TOP:k Thesek EconomickWaykofkThinkingk
KEY:k Bloom's:k Application MSC:k Suggested k Quiz
11. AdamkSmith kbelieved k thosek if k people k werekfreek to k pursue k theseirk own k interests,
a. publick interestk would k bekserved k quitekwell.
b. lessk would k bek produced k than k if k altruismkwerek thesek guidingkprinciple.
c. thesey kwould kgenerallykapply ktheseirktalentsktokunproductivek activitieskthosekwouldk
generatelittle k valuek to k society.
d. thesey kwould k haveklittlekincentive k to k undertake k productive k activities.
ANSWERED:k A PTS:k k 1 DIF: Easy NAT:k BUSPROG:kAnalytic
STA:k DISC:kScarcity,ktradeoffs,kand kopportunity kcost
TOP:k OutstandingkEconomist:kThesekImportance kofkAdamkSmith,kthesekFatheserkofkEconomic k
ScienceKEY:k Bloom's:k Knowledge
12. Modern keconomicsk ask ak field k of k study k isk usually k thoughtk to k havek begun k with
a. AdamkSmith k and kthesek writingk of k ThesekWealth kofkNations.
b. David kRicardo k and k thesek writingkof k ThesekPrincipleskofkPoliticalkEconomy kand kTaxation.
c. Aristotlek and kthesek writingkof k Politicskand kEthics.
d. Mosesk and kthesekTen kCommandments.
ANSWERED:k A PTS:k k 1 DIF: Easy NAT:k BUSPROG:kAnalytic
STA:k DISC:kScarcity,ktradeoffs,kand kopportunity kcost
TOP:k OutstandingkEconomist:kThesekImportance kofkAdamkSmith,kthesekFatheserkofkEconomic k
ScienceKEY:k Bloom's:k Knowledge
13. Accordingkto kAdamkSmith,kindividualk self-interest
a. isk ak powerfulk forcek fork economic k progressk when k itk isk directed k by kcompetitive k markets.
b. isk ak powerfulkforcekfork economickprogresskwhenkindividualskarekwiselykdirected kbykakstrongk
centralk government.
c. isk ak majork factork in k retardingk thesek economic k progressk of k humankind.
d. could kbekeitheserkakpositivekorknegativekforcekforkeconomickprogress,kdependingkonkthesek
moralinfluencesk of k politicalk leaders.
ANSWERED:k A PTS:k k 1 DIF: Easy NAT:k BUSPROG:kAnalytic
STA:k DISC:kScarcity,ktradeoffs,kand kopportunity kcost
TOP:k OutstandingkEconomist:kThesekImportance kofkAdamkSmith,kthesekFatheserkofkEconomic k
ScienceKEY:k Bloom's:k Knowledge
14. Thesek basickingredientsk in k any keconomic k decision k are
a. scarcity k and k choice.
b. surplusesk and k shortages.
c. marketk pricesk and k thesek usekof k efficientk production k methods.
d. needsk and k wants.
ANSWERED:k A PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
, STA:k DISC:k Scarcity,k tradeoffs, k and k opportunity k cost
TOP:kWhen kiskEconomicskAbout?k
KEY:k Bloom's:k Knowledge
15. Economic k choicekand k competitive k behaviork arek thesek resultk of
a. scarcity.
b. poverty.
c. publick ownership k of k resources.
d. private kownership kof k resources.
ANSWERED:k A PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Scarcity,k tradeoffs, k and k opportunity k cost
TOP:kWhen kiskEconomicskAbout?k
KEY:k Bloom's:k Knowledge
16. Fork thesek typicalk student,k takingkan k introductory k course k in keconomicsk should
a. turn kthesek studentk into k an k economist.
b. teach k thesek studentk solutionsk to kmostk socialk problems.
c. teach kthesek studentk howk to kansweredwerk complex k socialk questions.
d. help kthesek studentk learn k to krationally kanalyze k socialk problems.
e. Allk of k thesek abovek arek correct.
ANSWERED:k D PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Scarcity,k tradeoffs, k and k opportunity k cost
TOP:kWhen kiskEconomicskAbout?k
KEY:k Bloom's:k Comprehension
17. When k aksocietykcannotkproducekallkthesekgoodskand kserviceskpeoplekwishkto khave,kitkisksaid kthosekt
heseeconomy k isk experiencing
a. scarcity.
b. shortages.
c. inefficiencies.
d. inequities.
ANSWERED:k A PTS:k k 1 DIF: Easy NAT:k BUSPROG:kAnalytic
STA:k DISC:k Scarcity,k tradeoffs, k and k opportunity k cost
TOP:kWhen kiskEconomicskAbout?k
KEY:k Bloom's:k Knowledge
18. By kscientific k method k wek mean
a. thesekusek of k modern k electronic ktestingkequipmentk to kunderstand k thesek world.
b. thesekdispassionate kdevelopmentk and k testingkof k theseoriesk aboutk howkthesek world k works.
c. thesekusek of k controlled k laboratory kexperimentsk to k understand kthesek way kthesek world kworks.
d. findingkevidence k to ksupportk preconceived k theseoriesk aboutk howkthesek world k works.
ANSWERED:k B PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Scarcity,k tradeoffs,k and k opportunity k cost
TOP:k Thesek Economic kWay kof kThinking KEY:k Bloom's:k Comprehension
19. Economistsk makek assumptionsk in k orderk to
a. mimick thesek methodologieskemployed k by kotheserk scientists.
b. minimize kthesek numberk of k experimentsk thosek yield k no k usefulk data.
c. minimize kthesek likelihood k thosek some k aspectk of k thesek problem k atk hand kisk beingk overlooked.
d. focusk theseirk thinkingk on kthesek essence k of k thesek problem k atk hand.
ANSWERED:k D PTS:k k 1 DIF: Moderate NAT:k BUSPROG:kAnalytic
STA:k DISC:k Scarcity,k tradeoffs,k and k opportunity k cost
TOP:k Thesek Economic kWay kof kThinking KEY:k Bloom's:k Comprehension
