Test Bank for Macroeconomics, 25th Edition David Colander.pdf

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Chapter 01 n


Economics and Economic Reasoning
n n n n




Truen/nFalsenQuestions



1. Thenanswersntonanneconomy'snthreencentralneconomicnproblemsnarendeterminednbyntheni
nteractionnofnthreenforces:neconomicnforces,npoliticalnforces,nandnsocialnforces.
True False



2. Scarcitynexistsnbecauseneconomiesncannotnproducenenoughntonmeetnthenperceivedndesiresnofna
llnindividuals.
True False



3. Onlynmarginalncosts,nnotnsunkncosts,nshouldnaffectneconomicndecisionsnifnindividualsnarenr
ational.
True False



4. Theneconomicndecisionnrulenisntonundertakenannactionnonlynwhennthenmarginalnbenefitsnofnt
hatnactionnarengreaternthannitsntotalncosts.
True False



5. Thenopportunityncostnofnundertakingnannactivitynincludesnanynsunkncost.n
True False



6. Opportunityncostnisnthensamenasnmarginalncost.n
True False



7. Then"invisiblenhand"nisnthenpricenmechanismnthatnguidesnournactionsninnthenmarket.n
True False




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8. Socialnandnpoliticalnforcesnaffectnthenwayninnwhichntheninvisiblenhandnworks.n
True False



9. Macroeconomicsnisnthenstudynofnhownindividualnchoicesnarenaffectednbyneconomicnforces.n
True False



10. Decidingnwhatnthendistributionnofnincomenshouldnbenisnannexamplenofnnormativene
conomics.
True False



MultiplenChoicenQuestions



11. Saynanpillnexistednthatnmadenpeoplenselfless.nAfterntakingnitntheynwerenonlyninterestedninno
thersnnotnthemselves.nUndernthencoordinationndefinitionnofneconomics:
A. noneconomicnproblemnwouldnexist.
B. therenwouldnstillnbenanneconomicnproblem.
C. therenwouldnbenanpoliticalnproblemnbutnnotnanneconomicnproblem.
D. therenwouldnbenansocialnproblemnbutnnotnanneconomicnproblem.



12. Accordingntonthentext,neconomicsnisnthenstudynofnhow:
A. governmentsnallocatenresourcesninnthenfacenofnconstraints.
B. governmentnpoliciesncannbenusedntonmeetnindividuals'nwantsnandndesires.
C. humannbeingsncoordinatentheirnwantsnandndesiresninnthenfacenofnconstraints.
D. scarcenresourcesnarenallocatedntontheirnmostnproductivenuses.



13. Dormnroomsnarennotnusuallynallocatednbynmarkets.nAllocatingndormnroomsnis:
A. notnanneconomicnproblem.
B. anneconomicnproblem.
C. notnaffectednbyneconomicnforces.
D. determinednbynprices.




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14. Ifnallocatingndormnroomsnchangesnfromnallocationnbynlotteryntonallocationnbynthenmarket:
A. itnbecomesnanneconomicnproblem.
B. itnbecomesnanpoliticalnproblemnbutnnotnanneconomicnproblem.
C. itnbecomesnansocialnproblemnbutnnotnanneconomicnproblem.
D. thenallocationnproblemnisnstillnanneconomicnproblem.



15. Whichnofnthenfollowingnisnnotnonenofnthenthreencentralncoordinationnproblemsnofnthene
conomyngivenninnthenbook?
A. What.
B. Whether.
C. Fornwhom.
D. How.



16. Thenquantitynofngoodsnandnservicesnavailablentonsociety:
A. isnfixed.
B. dependsnonnhumannaction.
C. isnnotnofneconomicnimportance.
D. willnalwaysngrowntonmeetnindividuals'nwantsnandndesires.



17. Anyneconomicnsystem:
A. canneliminatenscarcity.
B. addressesnthenquestionsnwhatnisnproduced,nhownitnisnproduced,nandnfornwhomnitnisnproduced.
C. providesnallnthengoodsnpeoplenwantnandndesire.
D. providesnequalndistributionnofnwell-beingnamongnitsnparticipants.



18. Scarcitynexistsnbecause:
A. individualsncan'tnsolventhenthreencentralncoordinationnproblems.
B. governmentsncan'tnsolventhenthreencentralncoordinationnproblems.
C. thensupplynofngoodsnisnalwaysnlessnthannthendemand.
D. newnwantsncontinuentondevelop.




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