Finance Chapter 1—These Economic Approach
d d d d
MULTIPLEdCHOICE
1. Whenddodeconomistsdmeandwhendtheseydstatedthosedadgooddisdscarce?
a. Theseredisdadshortagedordinsufficientddemanddofdthesedgooddatdthesedexistingdprice.
b. Itdisdimpossibledtodexpanddthesedavailabilitydofdthesedgooddbeyonddthesedcurrentdamount.
c. Peopledwilldwantdtodbuydmoredofdthesedgooddregardlessdofdthesedpricedofdthesedgood.
d. Thesedamountdofdthesedgooddthosedpeopledwoulddlikedexceedsdtheseddemanddfreelyd
availabledfromnature.
ANSWERED:d D PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:d DISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:dWhendisdEconomicsdAbout?dKEY:d Bloom's:dCom
prehension MSC:d SuggesteddQuiz
2. Economicdchoicedanddcompetitivedbehaviordaredthesedresultdof
a. basicdhumandgreed.
b. poverty.
c. privatedownershipdofdresources.
d. scarcity.
ANSWERED:d D PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:d DISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:dWhendisdEconomicsdAbout?dKEY:d Bloom's:dCom
prehension MSC:d SuggesteddQuiz
3. JoedanddEddgodtodaddinerdthosedsellsdhamburgersdford$5danddhotddogsdford$3.dTheseydagreedtodsplitdthesedl
unchbilldevenly.dEddchoosesdadhotddog.dThesedmarginaldcostdtodJoedthesendofdorderingdadhamburgerdinst
eaddofdadhotddogdis
a. $1.
b. $2.
c. $2.50.
d. $3.
ANSWERED:d A PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:d DISC:dMarginaldcostsd&dbenefits
TOP:d ThesedEconomicdWaydofdThinkingd
KEY:d Bloom's:dApplication MSC:d SuggesteddQuiz
4. Thesedexpression,d"Thesere'sdnodsuchdthingdasdadfreedlunch,"dimpliesdthose
a. everyonedhasdtodpaydfordhisdowndlunch.
b. thesedpersondconsumingdadgooddmustdalwaysdpaydfordit.
c. opportunitydcostsdaredincurreddwhendresourcesdareduseddtodproducedgoodsdanddservices.
d. nodonedhasdtimedfordadgooddlunchdanymore.
ANSWERED:d C PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:dDISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:d ThesedEconomicdWaydofdThinking
KEY:dBloom's:dComprehension
dMSC:d SuggesteddQuiz
5. Whichdonedofdthesedfollowingdstatesdadcentraldelementdofdthesedeconomicdwaydofdthinking?
a. Scarcedgoodsdaredpriceless.
b. Incentivesdmatter--
humandchoicedisdinfluenceddindpredictabledwaysdbydchangesdindpersonaldcostsdanddbenefits.
c. Thesedrealismdofdthesedassumptionsdisdthesedbestdtestdofdandeconomicdtheseory.
d. Whenddecidingdhowdtodallocatedtime,dthesedconceptdofdopportunitydcostdisdmeaningless.
, ANSWERED:d B PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:d DISC:dThesedroledofdincentives
TOP:d ThesedEconomicdWaydofdThinkingd
KEY:d Bloom's:dComprehension MSC:d SuggesteddQuiz
6. Whichdofdthesedfollowingdisdmostdclearlydconsistentdwithdthesedbasicdpostulatedofdeconomicsd
regardingdthesereactiondofdpeopledtodadchangedindincentives.
a. Farmersdproducedfewerdbushelsdofdwheatdindresponsedtodandincreasedindthesedpricedofdwheat.
b. Peopledwilldbuydmoredmilkdatdadpricedofd$2dperdgallondthandatd$1dperdgallon.
c. Peopledwilldbuydlessdgasdifdthesedpricedofdgasdincreasesdbyd$.20dperdgallon.
d. Peopledwilldconsumedmoredbeefdifdthesedpricedincreasesdfromd$1dtod$2dperdpound.
ANSWERED:d C PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:d DISC:dThesedroledofdincentives
TOP:d ThesedEconomicdWaydofdThinkingd
KEY:d Bloom's:dApplication MSC:d SuggesteddQuiz
7. Whichdonedofdthesedfollowingdisdadpositivedeconomicdstatement?
a. Andincreasedindthesedminimumdwagedwilldreducedemployment.
b. Thesedminimumdwagedshoulddbedincreased.
c. Socialdjusticedwilldbedserveddbydincreasingdthesedminimumdwage.
d. Thoughtfuldpeopledopposedandincreasedindthesedminimumdwage.
ANSWERED:d A PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:dDISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:d PositivedanddNormativedEconomics
KEY:dBloom's:dComprehension
dMSC:d SuggesteddQuiz
8. Thesedbasicddifferencedbetweendfinancedanddmicroeconomicsdisdthose
a. financedisdconcerneddwithdthesedforestd(aggregatedmarkets),dwhiledmicroeconomicsisd
concerneddwithdthesedindividualdtreesd(subcomponents).
b. financedisdconcerneddwithdpolicyddecisions,dwhiledmicroeconomicsdappliesdonlytod
theseory.
c. microeconomicsdisdconcerneddwithdthesedforestd(aggregatedmarkets),dwhiledfinanceisd
concerneddwithdthesedtreesd(subcomponents).
d. opportunitydcostdisdapplicabledtodfinance,danddthesedfallacydofdcompositiondrelatestod
microeconomics.
ANSWERED:d A PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:dDISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:d PitfallsdtodAvoiddindEconomicdThinking
KEY:dBloom's:dComprehension
dMSC:d SuggesteddQuiz
9. Economicdanalysisdassumesdthose
a. individualsdactdonlydoutdofdselfishdmotives.
b. althoughdindividualsdaredatdtimesdselfishdanddatdtimesdunselfish,donlydtheseirdselfishd
actionsmaydbedpredicted.
c. peopledaredbasicallydhumanitarian,danddtheseirdactionsdare,dtheserefore,dimpossibledtodpredict.
d. changesdindthesedpersonaldbenefitsdanddcostsdassociateddwithdadchoicedwilldexertdad
predictableinfluencedondhumandbehavior.
ANSWERED:d D PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:d DISC:dUtilitydanddconsumerdchoice
TOP:dWhendisdEconomicsdAbout?dKEY:d Bloom's:dCom
prehension MSC:d SuggesteddQuiz
,10. Whiledwaitingdindlinedtodbuydtwodtacosdatd75dcentsdeach,danddadmediumddrinkdford80dcents,dJordand
noticesdthosedthesedrestaurantdhasdadvaluedmealdcontainingdthreedtacosdanddadmediumddrinkdalldfor
$2.50.
FordJordan,dthesedmarginaldcostdofdpurchasingdthesedthirddtacodwoulddbe
a. zero.
b. 20dcents.
c. 75dcents.
d. 80dcents.
ANSWERED:d B PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:d DISC:dMarginaldcostsd&dbenefits
TOP:d ThesedEconomicdWaydofdThinkingd
KEY:d Bloom's:dApplication MSC:d SuggesteddQuiz
11. AdamdSmithdbelieveddthosedifdpeopledweredfreedtodpursuedtheseirdowndinterests,
a. publicdinterestdwoulddbedserveddquitedwell.
b. lessdwoulddbedproduceddthandifdaltruismdweredthesedguidingdprinciple.
c. theseydwoulddgenerallydapplydtheseirdtalentsdtodunproductivedactivitiesdthosedwouldd
generatelittledvaluedtodsociety.
d. theseydwoulddhavedlittledincentivedtodundertakedproductivedactivities.
ANSWERED:d A PTS:d d 1 DIF: Easy NAT:d BUSPROG:dAnalytic
STA:d DISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:dOutstandingdEconomist:dThesedImportancedofdAdamdSmith,dthesedFatheserdofdEconomicd
ScienceKEY:d Bloom's:dKnowledge
12. Moderndeconomicsdasdadfielddofdstudydisdusuallydthoughtdtodhavedbegundwith
a. AdamdSmithdanddthesedwritingdofdThesedWealthdofdNations.
b. DaviddRicardodanddthesedwritingdofdThesedPrinciplesdofdPoliticaldEconomydanddTaxation.
c. AristotledanddthesedwritingdofdPoliticsdanddEthics.
d. MosesdanddthesedTendCommandments.
ANSWERED:d A PTS:d d 1 DIF: Easy NAT:d BUSPROG:dAnalytic
STA:d DISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:dOutstandingdEconomist:dThesedImportancedofdAdamdSmith,dthesedFatheserdofdEconomicd
ScienceKEY:d Bloom's:dKnowledge
13. AccordingdtodAdamdSmith,dindividualdself-interest
a. isdadpowerfuldforcedfordeconomicdprogressdwhenditdisddirecteddbydcompetitivedmarkets.
b. isdadpowerfuldforcedfordeconomicdprogressdwhendindividualsdaredwiselyddirecteddbydadstrongd
centraldgovernment.
c. isdadmajordfactordindretardingdthesedeconomicdprogressdofdhumankind.
d. coulddbedeitheserdadpositivedordnegativedforcedfordeconomicdprogress,ddependingdondthesed
moralinfluencesdofdpoliticaldleaders.
ANSWERED:d A PTS:d d 1 DIF: Easy NAT:d BUSPROG:dAnalytic
STA:d DISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:dOutstandingdEconomist:dThesedImportancedofdAdamdSmith,dthesedFatheserdofdEconomicd
ScienceKEY:d Bloom's:dKnowledge
14. Thesedbasicdingredientsdindanydeconomicddecisiondare
a. scarcitydanddchoice.
b. surplusesdanddshortages.
c. marketdpricesdanddthesedusedofdefficientdproductiondmethods.
d. needsdanddwants.
ANSWERED:d A PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
, STA:d DISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:dWhendisdEconomicsdAbout?d
KEY:d Bloom's:dKnowledge
15. Economicdchoicedanddcompetitivedbehaviordaredthesedresultdof
a. scarcity.
b. poverty.
c. publicdownershipdofdresources.
d. privatedownershipdofdresources.
ANSWERED:d A PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:d DISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:dWhendisdEconomicsdAbout?d
KEY:d Bloom's:dKnowledge
16. Fordthesedtypicaldstudent,dtakingdandintroductorydcoursedindeconomicsdshould
a. turndthesedstudentdintodandeconomist.
b. teachdthesedstudentdsolutionsdtodmostdsocialdproblems.
c. teachdthesedstudentdhowdtodansweredwerdcomplexdsocialdquestions.
d. helpdthesedstudentdlearndtodrationallydanalyzedsocialdproblems.
e. Alldofdthesedabovedaredcorrect.
ANSWERED:d D PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:d DISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:dWhendisdEconomicsdAbout?d
KEY:d Bloom's:dComprehension
17. Whendadsocietydcannotdproducedalldthesedgoodsdanddservicesdpeopledwishdtodhave,ditdisdsaiddthosedt
heseeconomydisdexperiencing
a. scarcity.
b. shortages.
c. inefficiencies.
d. inequities.
ANSWERED:d A PTS:d d 1 DIF: Easy NAT:d BUSPROG:dAnalytic
STA:d DISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:dWhendisdEconomicsdAbout?d
KEY:d Bloom's:dKnowledge
18. Bydscientificdmethoddwedmean
a. thesedusedofdmoderndelectronicdtestingdequipmentdtodunderstanddthesedworld.
b. theseddispassionateddevelopmentdanddtestingdofdtheseoriesdaboutdhowdthesedworlddworks.
c. thesedusedofdcontrolleddlaboratorydexperimentsdtodunderstanddthesedwaydthesedworlddworks.
d. findingdevidencedtodsupportdpreconceiveddtheseoriesdaboutdhowdthesedworlddworks.
ANSWERED:d B PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:dDISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:d ThesedEconomicdWaydofdThinking KEY:d Bloom's:dComprehension
19. Economistsdmakedassumptionsdindorderdto
a. mimicdthesedmethodologiesdemployeddbydotheserdscientists.
b. minimizedthesednumberdofdexperimentsdthosedyielddnodusefulddata.
c. minimizedthesedlikelihooddthosedsomedaspectdofdthesedproblemdatdhanddisdbeingdoverlooked.
d. focusdtheseirdthinkingdondthesedessencedofdthesedproblemdatdhand.
ANSWERED:d D PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:dDISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:d ThesedEconomicdWaydofdThinking KEY:d Bloom's:dComprehension
d d d d
MULTIPLEdCHOICE
1. Whenddodeconomistsdmeandwhendtheseydstatedthosedadgooddisdscarce?
a. Theseredisdadshortagedordinsufficientddemanddofdthesedgooddatdthesedexistingdprice.
b. Itdisdimpossibledtodexpanddthesedavailabilitydofdthesedgooddbeyonddthesedcurrentdamount.
c. Peopledwilldwantdtodbuydmoredofdthesedgooddregardlessdofdthesedpricedofdthesedgood.
d. Thesedamountdofdthesedgooddthosedpeopledwoulddlikedexceedsdtheseddemanddfreelyd
availabledfromnature.
ANSWERED:d D PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:d DISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:dWhendisdEconomicsdAbout?dKEY:d Bloom's:dCom
prehension MSC:d SuggesteddQuiz
2. Economicdchoicedanddcompetitivedbehaviordaredthesedresultdof
a. basicdhumandgreed.
b. poverty.
c. privatedownershipdofdresources.
d. scarcity.
ANSWERED:d D PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:d DISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:dWhendisdEconomicsdAbout?dKEY:d Bloom's:dCom
prehension MSC:d SuggesteddQuiz
3. JoedanddEddgodtodaddinerdthosedsellsdhamburgersdford$5danddhotddogsdford$3.dTheseydagreedtodsplitdthesedl
unchbilldevenly.dEddchoosesdadhotddog.dThesedmarginaldcostdtodJoedthesendofdorderingdadhamburgerdinst
eaddofdadhotddogdis
a. $1.
b. $2.
c. $2.50.
d. $3.
ANSWERED:d A PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:d DISC:dMarginaldcostsd&dbenefits
TOP:d ThesedEconomicdWaydofdThinkingd
KEY:d Bloom's:dApplication MSC:d SuggesteddQuiz
4. Thesedexpression,d"Thesere'sdnodsuchdthingdasdadfreedlunch,"dimpliesdthose
a. everyonedhasdtodpaydfordhisdowndlunch.
b. thesedpersondconsumingdadgooddmustdalwaysdpaydfordit.
c. opportunitydcostsdaredincurreddwhendresourcesdareduseddtodproducedgoodsdanddservices.
d. nodonedhasdtimedfordadgooddlunchdanymore.
ANSWERED:d C PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:dDISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:d ThesedEconomicdWaydofdThinking
KEY:dBloom's:dComprehension
dMSC:d SuggesteddQuiz
5. Whichdonedofdthesedfollowingdstatesdadcentraldelementdofdthesedeconomicdwaydofdthinking?
a. Scarcedgoodsdaredpriceless.
b. Incentivesdmatter--
humandchoicedisdinfluenceddindpredictabledwaysdbydchangesdindpersonaldcostsdanddbenefits.
c. Thesedrealismdofdthesedassumptionsdisdthesedbestdtestdofdandeconomicdtheseory.
d. Whenddecidingdhowdtodallocatedtime,dthesedconceptdofdopportunitydcostdisdmeaningless.
, ANSWERED:d B PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:d DISC:dThesedroledofdincentives
TOP:d ThesedEconomicdWaydofdThinkingd
KEY:d Bloom's:dComprehension MSC:d SuggesteddQuiz
6. Whichdofdthesedfollowingdisdmostdclearlydconsistentdwithdthesedbasicdpostulatedofdeconomicsd
regardingdthesereactiondofdpeopledtodadchangedindincentives.
a. Farmersdproducedfewerdbushelsdofdwheatdindresponsedtodandincreasedindthesedpricedofdwheat.
b. Peopledwilldbuydmoredmilkdatdadpricedofd$2dperdgallondthandatd$1dperdgallon.
c. Peopledwilldbuydlessdgasdifdthesedpricedofdgasdincreasesdbyd$.20dperdgallon.
d. Peopledwilldconsumedmoredbeefdifdthesedpricedincreasesdfromd$1dtod$2dperdpound.
ANSWERED:d C PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:d DISC:dThesedroledofdincentives
TOP:d ThesedEconomicdWaydofdThinkingd
KEY:d Bloom's:dApplication MSC:d SuggesteddQuiz
7. Whichdonedofdthesedfollowingdisdadpositivedeconomicdstatement?
a. Andincreasedindthesedminimumdwagedwilldreducedemployment.
b. Thesedminimumdwagedshoulddbedincreased.
c. Socialdjusticedwilldbedserveddbydincreasingdthesedminimumdwage.
d. Thoughtfuldpeopledopposedandincreasedindthesedminimumdwage.
ANSWERED:d A PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:dDISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:d PositivedanddNormativedEconomics
KEY:dBloom's:dComprehension
dMSC:d SuggesteddQuiz
8. Thesedbasicddifferencedbetweendfinancedanddmicroeconomicsdisdthose
a. financedisdconcerneddwithdthesedforestd(aggregatedmarkets),dwhiledmicroeconomicsisd
concerneddwithdthesedindividualdtreesd(subcomponents).
b. financedisdconcerneddwithdpolicyddecisions,dwhiledmicroeconomicsdappliesdonlytod
theseory.
c. microeconomicsdisdconcerneddwithdthesedforestd(aggregatedmarkets),dwhiledfinanceisd
concerneddwithdthesedtreesd(subcomponents).
d. opportunitydcostdisdapplicabledtodfinance,danddthesedfallacydofdcompositiondrelatestod
microeconomics.
ANSWERED:d A PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:dDISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:d PitfallsdtodAvoiddindEconomicdThinking
KEY:dBloom's:dComprehension
dMSC:d SuggesteddQuiz
9. Economicdanalysisdassumesdthose
a. individualsdactdonlydoutdofdselfishdmotives.
b. althoughdindividualsdaredatdtimesdselfishdanddatdtimesdunselfish,donlydtheseirdselfishd
actionsmaydbedpredicted.
c. peopledaredbasicallydhumanitarian,danddtheseirdactionsdare,dtheserefore,dimpossibledtodpredict.
d. changesdindthesedpersonaldbenefitsdanddcostsdassociateddwithdadchoicedwilldexertdad
predictableinfluencedondhumandbehavior.
ANSWERED:d D PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:d DISC:dUtilitydanddconsumerdchoice
TOP:dWhendisdEconomicsdAbout?dKEY:d Bloom's:dCom
prehension MSC:d SuggesteddQuiz
,10. Whiledwaitingdindlinedtodbuydtwodtacosdatd75dcentsdeach,danddadmediumddrinkdford80dcents,dJordand
noticesdthosedthesedrestaurantdhasdadvaluedmealdcontainingdthreedtacosdanddadmediumddrinkdalldfor
$2.50.
FordJordan,dthesedmarginaldcostdofdpurchasingdthesedthirddtacodwoulddbe
a. zero.
b. 20dcents.
c. 75dcents.
d. 80dcents.
ANSWERED:d B PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:d DISC:dMarginaldcostsd&dbenefits
TOP:d ThesedEconomicdWaydofdThinkingd
KEY:d Bloom's:dApplication MSC:d SuggesteddQuiz
11. AdamdSmithdbelieveddthosedifdpeopledweredfreedtodpursuedtheseirdowndinterests,
a. publicdinterestdwoulddbedserveddquitedwell.
b. lessdwoulddbedproduceddthandifdaltruismdweredthesedguidingdprinciple.
c. theseydwoulddgenerallydapplydtheseirdtalentsdtodunproductivedactivitiesdthosedwouldd
generatelittledvaluedtodsociety.
d. theseydwoulddhavedlittledincentivedtodundertakedproductivedactivities.
ANSWERED:d A PTS:d d 1 DIF: Easy NAT:d BUSPROG:dAnalytic
STA:d DISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:dOutstandingdEconomist:dThesedImportancedofdAdamdSmith,dthesedFatheserdofdEconomicd
ScienceKEY:d Bloom's:dKnowledge
12. Moderndeconomicsdasdadfielddofdstudydisdusuallydthoughtdtodhavedbegundwith
a. AdamdSmithdanddthesedwritingdofdThesedWealthdofdNations.
b. DaviddRicardodanddthesedwritingdofdThesedPrinciplesdofdPoliticaldEconomydanddTaxation.
c. AristotledanddthesedwritingdofdPoliticsdanddEthics.
d. MosesdanddthesedTendCommandments.
ANSWERED:d A PTS:d d 1 DIF: Easy NAT:d BUSPROG:dAnalytic
STA:d DISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:dOutstandingdEconomist:dThesedImportancedofdAdamdSmith,dthesedFatheserdofdEconomicd
ScienceKEY:d Bloom's:dKnowledge
13. AccordingdtodAdamdSmith,dindividualdself-interest
a. isdadpowerfuldforcedfordeconomicdprogressdwhenditdisddirecteddbydcompetitivedmarkets.
b. isdadpowerfuldforcedfordeconomicdprogressdwhendindividualsdaredwiselyddirecteddbydadstrongd
centraldgovernment.
c. isdadmajordfactordindretardingdthesedeconomicdprogressdofdhumankind.
d. coulddbedeitheserdadpositivedordnegativedforcedfordeconomicdprogress,ddependingdondthesed
moralinfluencesdofdpoliticaldleaders.
ANSWERED:d A PTS:d d 1 DIF: Easy NAT:d BUSPROG:dAnalytic
STA:d DISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:dOutstandingdEconomist:dThesedImportancedofdAdamdSmith,dthesedFatheserdofdEconomicd
ScienceKEY:d Bloom's:dKnowledge
14. Thesedbasicdingredientsdindanydeconomicddecisiondare
a. scarcitydanddchoice.
b. surplusesdanddshortages.
c. marketdpricesdanddthesedusedofdefficientdproductiondmethods.
d. needsdanddwants.
ANSWERED:d A PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
, STA:d DISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:dWhendisdEconomicsdAbout?d
KEY:d Bloom's:dKnowledge
15. Economicdchoicedanddcompetitivedbehaviordaredthesedresultdof
a. scarcity.
b. poverty.
c. publicdownershipdofdresources.
d. privatedownershipdofdresources.
ANSWERED:d A PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:d DISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:dWhendisdEconomicsdAbout?d
KEY:d Bloom's:dKnowledge
16. Fordthesedtypicaldstudent,dtakingdandintroductorydcoursedindeconomicsdshould
a. turndthesedstudentdintodandeconomist.
b. teachdthesedstudentdsolutionsdtodmostdsocialdproblems.
c. teachdthesedstudentdhowdtodansweredwerdcomplexdsocialdquestions.
d. helpdthesedstudentdlearndtodrationallydanalyzedsocialdproblems.
e. Alldofdthesedabovedaredcorrect.
ANSWERED:d D PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:d DISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:dWhendisdEconomicsdAbout?d
KEY:d Bloom's:dComprehension
17. Whendadsocietydcannotdproducedalldthesedgoodsdanddservicesdpeopledwishdtodhave,ditdisdsaiddthosedt
heseeconomydisdexperiencing
a. scarcity.
b. shortages.
c. inefficiencies.
d. inequities.
ANSWERED:d A PTS:d d 1 DIF: Easy NAT:d BUSPROG:dAnalytic
STA:d DISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:dWhendisdEconomicsdAbout?d
KEY:d Bloom's:dKnowledge
18. Bydscientificdmethoddwedmean
a. thesedusedofdmoderndelectronicdtestingdequipmentdtodunderstanddthesedworld.
b. theseddispassionateddevelopmentdanddtestingdofdtheseoriesdaboutdhowdthesedworlddworks.
c. thesedusedofdcontrolleddlaboratorydexperimentsdtodunderstanddthesedwaydthesedworlddworks.
d. findingdevidencedtodsupportdpreconceiveddtheseoriesdaboutdhowdthesedworlddworks.
ANSWERED:d B PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:dDISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:d ThesedEconomicdWaydofdThinking KEY:d Bloom's:dComprehension
19. Economistsdmakedassumptionsdindorderdto
a. mimicdthesedmethodologiesdemployeddbydotheserdscientists.
b. minimizedthesednumberdofdexperimentsdthosedyielddnodusefulddata.
c. minimizedthesedlikelihooddthosedsomedaspectdofdthesedproblemdatdhanddisdbeingdoverlooked.
d. focusdtheseirdthinkingdondthesedessencedofdthesedproblemdatdhand.
ANSWERED:d D PTS:d d 1 DIF: Moderate NAT:d BUSPROG:dAnalytic
STA:dDISC:dScarcity,dtradeoffs,danddopportunitydcost
TOP:d ThesedEconomicdWaydofdThinking KEY:d Bloom's:dComprehension
