TEST BANK For Essentials of Economics, 8th Edition By Mankiw. (Complete Download) . All Chapters 1-36.

1. ThelEnglishlwordlthatlcomeslfromlthelGreeklwordlforl"onelwholmanageslalhousehold"lis
a. market.
b. consumer.
c. producer.
d. economy.
ANSWER: d
DIFFICULTY: Easy
LEARNINGlOBJECTIVES: ECON.MANK.012l-
lApplylbasic,leconomiclprinciplesloflindividualldecisionlmakinglthatldeterminel

howlanleconomylgenerallylworks.
TOPICS: Economiclthinking
KEYWORDS: BLOOM'S:lKnowledge
CUSTOMlID: 001.01.0l-lMCl-lMANK08


2. Thelwordl“economy”lcomeslfromlthelGreeklwordloikonomos,lwhichlmeans
a. “environment.”
b. “production.”
c. “onelwholmanageslalhousehold.”
d. “onelwholmakesldecisions.”
ANSWER: c
DIFFICULTY: Easy
LEARNINGlOBJECTIVES: ECON.MANK.012l-
lApplylbasic,leconomiclprinciplesloflindividualldecisionlmakinglthatldeterminel

howlanleconomylgenerallylworks.
TOPICS: Economiclthinking
KEYWORDS: BLOOM'S:lKnowledge
CUSTOMlID: 002.01.0l-lMCl-lMANK08


3. Resourceslare
a. scarcelforlhouseholdslbutlplentifullforleconomies.
b. plentifullforlhouseholdslbutlscarcelforleconomies.
c. scarcelforlhouseholdslandlscarcelforleconomies.
d. plentifullforlhouseholdslandlplentifullforleconomies.
ANSWER: c
DIFFICULTY: Easy
LEARNINGlOBJECTIVES: ECON.MANK.012l-
lApplylbasic,leconomiclprinciplesloflindividualldecisionlmakinglthatldeterminel

howlanleconomylgenerallylworks.
TOPICS: Economiclthinkingl
Scarcity
KEYWORDS: BLOOM'S:lComprehension
CUSTOMlID: 003.01.0l-lMCl-lMANK08

Pagel1

,4. Inlconsideringlhowltolallocatelitslscarcelresourceslamonglitslvariouslmembers,lalhouseholdlconsiders




Pagel2

, a. eachlmember’slabilities.
b. eachlmember’slefforts.
c. eachlmember’sldesires.
d. Allloflthelabovelarelcorrect.
ANSWER: d
DIFFICULTY: Easy
LEARNINGlOBJECTIVES: ECON.MANK.012l-
lApplylbasic,leconomiclprinciplesloflindividualldecisionlmakinglthatldeterminel

howlanleconomylgenerallylworks.
TOPICS: Economiclthinkingl
Scarcity
KEYWORDS: BLOOM'S:lComprehension
CUSTOMlID: 004.01.0l-lMCl-lMANK08

5. Fundamentally,leconomicsldealslwith
a. scarcity.
b. money.
c. poverty.
d. banking.
ANSWER: a
DIFFICULTY: Easy
LEARNINGlOBJECTIVES: ECON.MANK.012l-
lApplylbasic,leconomiclprinciplesloflindividualldecisionlmakinglthatldeterminel

howlanleconomylgenerallylworks.
TOPICS: Economiclthinkingl
Scarcity
KEYWORDS: BLOOM'S:lKnowledge
CUSTOMlID: 005.01.0l-lMCl-lMANK08


6. Whichloflthelfollowinglislcorrect?
a. ThelwordleconomylcomeslfromlthelGreeklwordlforl“rationallthinker.”
b. Economistslstudylthelmanagementloflscarcelresources.
c. Becauseleconomistslbelievelthatlpeoplelpursueltheirlbestlinterests,ltheylarelnotlinterestedlinlho
wlpeoplelinteract.
d. Allloflthelabovelarelcorrect.
ANSWER: b
DIFFICULTY: Easy
LEARNINGlOBJECTIVES: ECON.MANK.024l-
lClassifyltheldifferentlfunctionslanleconomistlmaylserve.


TOPICS: Economiclthinkingl
Scarcity
KEYWORDS: BLOOM'S:lKnowledge
CUSTOMlID: 006.01.0l-lMCl-lMANK08
Pagel3

, 7. Theloverridinglreasonlwhylhouseholdslandlsocietieslfacelmanyldecisionslislthat
a. resourceslarelscarce.
b. goodslandlserviceslarelnotlscarce.
c. incomeslfluctuatelwithlbusinesslcycles.
d. people,lbylnature,ltendltoldisagree.
ANSWER: a
DIFFICULTY: Moderate
LEARNINGlOBJECTIVES: ECON.MANK.012l-
lApplylbasic,leconomiclprinciplesloflindividualldecisionlmakinglthatldeterminel

howlanleconomylgenerallylworks.
TOPICS: Economiclthinkingl
Scarcity
KEYWORDS: BLOOM'S:lComprehension
CUSTOMlID: 007.01.0l-lMCl-lMANK08


8. Alsocietylallocateslitslscarcelresourcesltolvariousluses.lTheselscarcelresourceslinclude
a. land.
b. people.
c. machines.
d. Allloflthelabovelarelcorrect.
ANSWER: d
DIFFICULTY: Moderate
LEARNINGlOBJECTIVES: ECON.MANK.012l-
lApplylbasic,leconomiclprinciplesloflindividualldecisionlmakinglthatldeterminel

howlanleconomylgenerallylworks.
TOPICS: Economiclthinkingl
Scarcity
KEYWORDS: BLOOM'S:lComprehension
CUSTOMlID: 008.01.0l-lMCl-lMANK08


9. Thelphenomenonloflscarcitylstemslfromlthelfactlthat
a. mostleconomies’lproductionlmethodslarelnotlverylgood.
b. inlmostleconomies,lwealthylpeoplelconsumeldisproportionatelquantitiesloflgoodslandlser
vices.
c. governmentslrestrictlproductionlofltoolmanylgoodslandlservices.
d. resourceslarellimited.
ANSWER: d
DIFFICULTY: Moderate
LEARNINGlOBJECTIVES: ECON.MANK.012l-
lApplylbasic,leconomiclprinciplesloflindividualldecisionlmakinglthatldeterminel

howlanleconomylgenerallylworks.
TOPICS: Economiclthinkingl
Scarcity
Pagel4