,TESTBANK for Economics for Today, 11th Edition
Irvin B. Tucker
Notes
1- The file is chapter after chapter.
2- We have shown you 10 pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many
new editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
,Name: Class: Date:
Chapter 01 - Introducing the Economic Way of Thinking
Multiple Choice
1. When economists say scarcity, they mean:
a. there are only a limited number of consumers who would be interested in purchasing goods.
b. human wants exceed the available supply of time, goods and resources.
c. most people in poorer countries do not have enough goods.
d. goods are so expensive that only the rich can afford it.
ANSWER: b
2. When economists say goods are scarce, they mean:
a. consumers are too poor to afford the goods and services available.
b. consumers are unwilling to buy goods unless they have very low prices.
c. goods are generally freely available from nature in most countries.
d. the desire for goods and services exceeds our ability to produce them with the limited
resources available.
ANSWER: d
3. Scarcity is a problem:
a. measured by the amount of goods available.
b. of the poor, but not the rich.
c. because human wants are unlimited while resources are limited.
d. only in industrialized economies.
ANSWER: c
4. Scarcity:
a. is a problem only in industrialized economies.
b. is a condition measured by the quantity of goods available.
c. exists everywhere because human wants can never be satisfied.
d. is a problem only in poor economies.
ANSWER: c
5. Scarcity:
a. exists because resources are unlimited while human wants are limited.
b. means we are unable to have as many goods and services or as much time for activities as we
would like to have.
c. will likely be eliminated as technology continues to expand.
d. is not an issue addressed in economics.
ANSWER: b
6. The finite nature of the economy's resource base:
a. will be solved if only we would learn to conserve.
b. is only a problem in developing countries.
c. will be solved as technology advances.
d. will always be with us.
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Chapter 01 - Introducing the Economic Way of Thinking
ANSWER: d
7. Human wants:
a. are unfilled only in the poorer countries of the world.
b. can be completely satisfied by advancing technology.
c. can never be fully satisfied.
d. only apply to necessities.
ANSWER: c
8. Which of the following is an example of scarcity?
a. Adam has more than enough food to eat each day.
b. Benito is wealthy so he has everything he could ever want.
c. Camden would like to have more designer clothes than he can afford.
d. Dennis takes as many vacations as he would like since he won the lottery.
ANSWER: c
9. The perpetual problem in economics is:
a. our inability to work together effectively.
b. our inability to satisfy everyone's wants with the available resources.
c. likely to be solved in resource-rich countries.
d. our inability to utilize resources efficiently.
ANSWER: b
10. Wealthy families wanting finer homes and nicer vacations exemplify:
a. capital.
b. production.
c. resources.
d. scarcity.
ANSWER: d
11. People are forced to make choices because of:
a. unlimited wants and unlimited resources.
b. limited wants and unlimited resources.
c. unlimited wants and limited resources.
d. limited wants and limited resources.
ANSWER: c
12. Relate the term scarcity to the action(s) it causes.
a. Scarcity causes developed nations to have more material goods than developing nations.
b. Scarcity causes fewer technological advances.
c. Scarcity forces people to want more material goods.
d. Scarcity forces everyone to make choices.
ANSWER: d
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,Name: Class: Date:
Chapter 01 - Introducing the Economic Way of Thinking
13. Which of the following is true of resources?
a. Resources are outputs from the production of goods and services.
b. A $1,000 investment is an example of a capital resource.
c. Entrepreneurship combines resources to produce innovative products.
d. Land resources do not include water.
ANSWER: c
14. Natural resources are:
a. not considered scarce because no one pays for them.
b. rarely used in production.
c. included in the category of resources called land.
d. available in unlimited quantities.
ANSWER: c
15. Which of the following would an economist classify as capital?
a. 100 shares of Microsoft stock
b. $50 bill
c. credit card
d. lawyer's personal computer
ANSWER: d
16. An entrepreneur is a(n):
a. individual who has much education.
b. organizer who seeks profitable opportunities and is willing to accept risks.
c. business organization that uses inputs to produce output.
d. depot or warehouse for commercial products.
ANSWER: b
17. Which of the following is not an example of a factor of production?
a. A forest
b. A computer program
c. An assembly-line worker
d. Dollars
ANSWER: d
18. An economics textbook is an example of:
a. capital.
b. labor.
c. a natural resource.
d. entrepreneurship.
ANSWER: a
19. The mental and physical capacity of workers to produce goods and services is known as:
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,Name: Class: Date:
Chapter 01 - Introducing the Economic Way of Thinking
a. labor.
b. entrepreneurship.
c. value judgment.
d. product sensitivity.
ANSWER: a
20. The services of farmers are an example of:
a. capital.
b. a natural resource.
c. labor.
d. entrepreneurship.
ANSWER: c
21. 100 shares of stock in General Motors is considered which type of resource?
a. land
b. labor
c. capital
d. It is not a resource.
ANSWER: d
22. Which of the following is not an example of a capital input?
a. a person’s skills and abilities, which can be employed to produce valuable goods and services
b. factories and offices where goods and services are produced
c. tools and equipment
d. computers used by a company to record inventory, sales, and payroll
ANSWER: a
23. A factor of production is the same as:
a. the amount of a good produced.
b. the price of a good.
c. an opportunity cost.
d. a resource.
ANSWER: d
24. All of the following are examples of capital except:
a. the robot used to help produce your car.
b. the classroom in which you learn.
c. the factory that produces the costume jewelry you buy.
d. an uncut diamond that you discover in your backyard.
ANSWER: d
25. The silly clothes worn by a circus clown are an example of:
a. a natural resource.
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,Name: Class: Date:
Chapter 01 - Introducing the Economic Way of Thinking
b. capital goods.
c. labor.
d. entrepreneurship.
ANSWER: b
26. Entrepreneurs can delegate every one of the following tasks to labor except:
a. hiring and training new employees.
b. assuming business risk and uncertainty.
c. supervision of the production process.
d. marketing the goods and services produced.
ANSWER: b
27. An entrepreneur is:
a. an employee in a factory.
b. the manager of a factory.
c. the person who seeks profits by taking risks.
d. the person who does not assume any risk in business.
ANSWER: c
28. Labor resources:
a. include only physical activities.
b. include human effort involved in the production of goods, but not services.
c. include only skilled labor.
d. include both physical and mental activities.
ANSWER: d
29. Economics is the study of how people:
a. vote for political leaders.
b. make choices to allocate scarce resources.
c. establish social institutions that maximize well-being.
d. develop value systems.
ANSWER: b
30. The central question in economics is how to:
a. deal with the problem of scarcity.
b. change government economic policy.
c. change people's wants to match their needs.
d. manage money and become wealthy.
ANSWER: a
31. The subject of economics is primarily the study of:
a. the government decision-making process.
b. how to operate a business successfully.
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Chapter 01 - Introducing the Economic Way of Thinking
c. decision-making because of the problem of scarcity.
d. how to make money in the stock market.
ANSWER: c
32. Microeconomics approaches the study of economics from the viewpoint of:
a. inflation, unemployment, and economic growth.
b. the federal government.
c. individual economic units, such as consumers, firms, industries, and units of government.
d. the economy as a whole.
ANSWER: c
33. The basic difference between macroeconomics and microeconomics is:
a. microeconomics concentrates on individual markets while macroeconomics focuses primarily
on international trade.
b. microeconomics concentrates on the behavior of individual consumers while macroeconomics
focuses on the behavior of firms.
c. microeconomics concentrates on the behavior of individual consumers, firms, and industries
while macroeconomics focuses on the performance of the entire economy.
d. microeconomics explores the causes of inflation while macroeconomics focuses on the causes
of unemployment.
ANSWER: c
34. Determining the price of mobile phones is a concern of:
a. macroeconomics.
b. microeconomics.
c. both macroeconomics and microeconomics.
d. neither macroeconomics nor microeconomics.
ANSWER: b
35. Which of the following is the best example of a microeconomic topic?
a. the impact that the money supply has on inflation
b. the reasons for increases in the price of soft drinks
c. the effect that federal budget deficits have on the interest rate
d. the tradeoff between inflation and unemployment
ANSWER: b
36. The price of milk would be of particular interest to:
a. a microeconomist.
b. a macroeconomist.
c. neither a microeconomist nor a macroeconomist.
d. both a microeconomist and a macroeconomist.
ANSWER: a
37. The study of microeconomics and macroeconomics differ in that:
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,Name: Class: Date:
Chapter 01 - Introducing the Economic Way of Thinking
a. microeconomics is concerned with the domestic economy and macroeconomics is concerned
only with the international economy.
b. microeconomics examines the individual markets of the economy while macroeconomics
studies the whole economy.
c. microeconomics studies the actions of households and macroeconomics studies the actions of
business firms.
d. microeconomics examines the whole economy while macroeconomics studies the individual
units of the economy.
ANSWER: b
38. Microeconomics deals with the analysis of all the following topics except how:
a. the wages of carpenters are determined.
b. high unemployment rose during the Great Depression.
c. Ford decides how to price its cars.
d. a college student decides how to spend her income.
ANSWER: b
39. Which of the following is the best example of a microeconomics topic?
a. price of a new home
b. the inflation rate
c. the economy's growth rate
d. forecasts of a recession next year
ANSWER: a
40. Arrange the following topics into lists of microeconomic and macroeconomic topics:
- wages of textile workers
- cost of producing 10,000 bookcases
- the economy's annual growth rate
- national demand for fish
- the unemployment rate
- the gold futures market
- money supply
- projected inflation rate next year
a. Microeconomics: wages of textile workers, the unemployment rate, cost of producing 10,000
bookcases, the gold futures market
Macroeconomics: the economy's annual growth rate, money supply, national demand for fish,
projected inflation rate next year
b. Microeconomics: wages of textile workers, cost of producing 10,000 bookcases, the
economy's annual growth rate, unemployment rate
Macroeconomics: national demand for fish, the gold futures market, money supply, projected
inflation rate next year
c. Microeconomics: wages of textile workers, cost of producing 10,000 bookcases, the gold
futures market, national demand for fish
Macroeconomics: the economy's annual growth rate, the unemployment rate, money supply,
projected inflation rate next year
d. Microeconomics: the economy's annual growth rate, the unemployment rate, money supply,
projected inflation rate next year
Macroeconomics: wages of textile workers, cost of producing 10,000 bookcases, the gold
futures market, national demand for fish
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Chapter 01 - Introducing the Economic Way of Thinking
ANSWER: c
41. Which of the following is included in the study of macroeconomics?
a. wage rate of Ford’s assembly-line workers
b. prices of automobiles
c. national unemployment
d. price of silver and gold
ANSWER: c
42. A television network newscaster reports that the national inflation rate the past year equaled 4 percent.
This report would be of particular interest to a:
a. microeconomist.
b. normative economist.
c. macroeconomist.
d. social science economist.
ANSWER: c
43. Macroeconomics deals with the analysis of all of the following questions except:
a. Why do national economies grow?
b. How does Microsoft price its software packages?
c. How does a central bank influence inflation?
d. Why does a country experience recessions?
ANSWER: b
44. Which of the following would be studied by a macroeconomist rather than a microeconomist?
a. shipping rates
b. price of corporate stock
c. market price of Japanese cars
d. national unemployment rate
ANSWER: d
45. The question "why do national economies grow" would be a macroeconomic, rather than a
microeconomic topic, because it:
a. relates to the economy as a whole.
b. studies a single market.
c. considers the decisions of one industry.
d. depends on the actions of suppliers.
ANSWER: a
46. Which of the following statements best illustrates the form of an economic theory?
a. If A, then B.
b. If A, then B, when C, D, E, and F are also changing.
c. A, B, and C all occurred at the same time.
d. If A, then B, other things held constant.
Copyright Cengage Learning. Powered by Cognero. Page 8
Irvin B. Tucker
Notes
1- The file is chapter after chapter.
2- We have shown you 10 pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many
new editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
,Name: Class: Date:
Chapter 01 - Introducing the Economic Way of Thinking
Multiple Choice
1. When economists say scarcity, they mean:
a. there are only a limited number of consumers who would be interested in purchasing goods.
b. human wants exceed the available supply of time, goods and resources.
c. most people in poorer countries do not have enough goods.
d. goods are so expensive that only the rich can afford it.
ANSWER: b
2. When economists say goods are scarce, they mean:
a. consumers are too poor to afford the goods and services available.
b. consumers are unwilling to buy goods unless they have very low prices.
c. goods are generally freely available from nature in most countries.
d. the desire for goods and services exceeds our ability to produce them with the limited
resources available.
ANSWER: d
3. Scarcity is a problem:
a. measured by the amount of goods available.
b. of the poor, but not the rich.
c. because human wants are unlimited while resources are limited.
d. only in industrialized economies.
ANSWER: c
4. Scarcity:
a. is a problem only in industrialized economies.
b. is a condition measured by the quantity of goods available.
c. exists everywhere because human wants can never be satisfied.
d. is a problem only in poor economies.
ANSWER: c
5. Scarcity:
a. exists because resources are unlimited while human wants are limited.
b. means we are unable to have as many goods and services or as much time for activities as we
would like to have.
c. will likely be eliminated as technology continues to expand.
d. is not an issue addressed in economics.
ANSWER: b
6. The finite nature of the economy's resource base:
a. will be solved if only we would learn to conserve.
b. is only a problem in developing countries.
c. will be solved as technology advances.
d. will always be with us.
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,Name: Class: Date:
Chapter 01 - Introducing the Economic Way of Thinking
ANSWER: d
7. Human wants:
a. are unfilled only in the poorer countries of the world.
b. can be completely satisfied by advancing technology.
c. can never be fully satisfied.
d. only apply to necessities.
ANSWER: c
8. Which of the following is an example of scarcity?
a. Adam has more than enough food to eat each day.
b. Benito is wealthy so he has everything he could ever want.
c. Camden would like to have more designer clothes than he can afford.
d. Dennis takes as many vacations as he would like since he won the lottery.
ANSWER: c
9. The perpetual problem in economics is:
a. our inability to work together effectively.
b. our inability to satisfy everyone's wants with the available resources.
c. likely to be solved in resource-rich countries.
d. our inability to utilize resources efficiently.
ANSWER: b
10. Wealthy families wanting finer homes and nicer vacations exemplify:
a. capital.
b. production.
c. resources.
d. scarcity.
ANSWER: d
11. People are forced to make choices because of:
a. unlimited wants and unlimited resources.
b. limited wants and unlimited resources.
c. unlimited wants and limited resources.
d. limited wants and limited resources.
ANSWER: c
12. Relate the term scarcity to the action(s) it causes.
a. Scarcity causes developed nations to have more material goods than developing nations.
b. Scarcity causes fewer technological advances.
c. Scarcity forces people to want more material goods.
d. Scarcity forces everyone to make choices.
ANSWER: d
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,Name: Class: Date:
Chapter 01 - Introducing the Economic Way of Thinking
13. Which of the following is true of resources?
a. Resources are outputs from the production of goods and services.
b. A $1,000 investment is an example of a capital resource.
c. Entrepreneurship combines resources to produce innovative products.
d. Land resources do not include water.
ANSWER: c
14. Natural resources are:
a. not considered scarce because no one pays for them.
b. rarely used in production.
c. included in the category of resources called land.
d. available in unlimited quantities.
ANSWER: c
15. Which of the following would an economist classify as capital?
a. 100 shares of Microsoft stock
b. $50 bill
c. credit card
d. lawyer's personal computer
ANSWER: d
16. An entrepreneur is a(n):
a. individual who has much education.
b. organizer who seeks profitable opportunities and is willing to accept risks.
c. business organization that uses inputs to produce output.
d. depot or warehouse for commercial products.
ANSWER: b
17. Which of the following is not an example of a factor of production?
a. A forest
b. A computer program
c. An assembly-line worker
d. Dollars
ANSWER: d
18. An economics textbook is an example of:
a. capital.
b. labor.
c. a natural resource.
d. entrepreneurship.
ANSWER: a
19. The mental and physical capacity of workers to produce goods and services is known as:
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Chapter 01 - Introducing the Economic Way of Thinking
a. labor.
b. entrepreneurship.
c. value judgment.
d. product sensitivity.
ANSWER: a
20. The services of farmers are an example of:
a. capital.
b. a natural resource.
c. labor.
d. entrepreneurship.
ANSWER: c
21. 100 shares of stock in General Motors is considered which type of resource?
a. land
b. labor
c. capital
d. It is not a resource.
ANSWER: d
22. Which of the following is not an example of a capital input?
a. a person’s skills and abilities, which can be employed to produce valuable goods and services
b. factories and offices where goods and services are produced
c. tools and equipment
d. computers used by a company to record inventory, sales, and payroll
ANSWER: a
23. A factor of production is the same as:
a. the amount of a good produced.
b. the price of a good.
c. an opportunity cost.
d. a resource.
ANSWER: d
24. All of the following are examples of capital except:
a. the robot used to help produce your car.
b. the classroom in which you learn.
c. the factory that produces the costume jewelry you buy.
d. an uncut diamond that you discover in your backyard.
ANSWER: d
25. The silly clothes worn by a circus clown are an example of:
a. a natural resource.
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,Name: Class: Date:
Chapter 01 - Introducing the Economic Way of Thinking
b. capital goods.
c. labor.
d. entrepreneurship.
ANSWER: b
26. Entrepreneurs can delegate every one of the following tasks to labor except:
a. hiring and training new employees.
b. assuming business risk and uncertainty.
c. supervision of the production process.
d. marketing the goods and services produced.
ANSWER: b
27. An entrepreneur is:
a. an employee in a factory.
b. the manager of a factory.
c. the person who seeks profits by taking risks.
d. the person who does not assume any risk in business.
ANSWER: c
28. Labor resources:
a. include only physical activities.
b. include human effort involved in the production of goods, but not services.
c. include only skilled labor.
d. include both physical and mental activities.
ANSWER: d
29. Economics is the study of how people:
a. vote for political leaders.
b. make choices to allocate scarce resources.
c. establish social institutions that maximize well-being.
d. develop value systems.
ANSWER: b
30. The central question in economics is how to:
a. deal with the problem of scarcity.
b. change government economic policy.
c. change people's wants to match their needs.
d. manage money and become wealthy.
ANSWER: a
31. The subject of economics is primarily the study of:
a. the government decision-making process.
b. how to operate a business successfully.
Copyright Cengage Learning. Powered by Cognero. Page 5
,Name: Class: Date:
Chapter 01 - Introducing the Economic Way of Thinking
c. decision-making because of the problem of scarcity.
d. how to make money in the stock market.
ANSWER: c
32. Microeconomics approaches the study of economics from the viewpoint of:
a. inflation, unemployment, and economic growth.
b. the federal government.
c. individual economic units, such as consumers, firms, industries, and units of government.
d. the economy as a whole.
ANSWER: c
33. The basic difference between macroeconomics and microeconomics is:
a. microeconomics concentrates on individual markets while macroeconomics focuses primarily
on international trade.
b. microeconomics concentrates on the behavior of individual consumers while macroeconomics
focuses on the behavior of firms.
c. microeconomics concentrates on the behavior of individual consumers, firms, and industries
while macroeconomics focuses on the performance of the entire economy.
d. microeconomics explores the causes of inflation while macroeconomics focuses on the causes
of unemployment.
ANSWER: c
34. Determining the price of mobile phones is a concern of:
a. macroeconomics.
b. microeconomics.
c. both macroeconomics and microeconomics.
d. neither macroeconomics nor microeconomics.
ANSWER: b
35. Which of the following is the best example of a microeconomic topic?
a. the impact that the money supply has on inflation
b. the reasons for increases in the price of soft drinks
c. the effect that federal budget deficits have on the interest rate
d. the tradeoff between inflation and unemployment
ANSWER: b
36. The price of milk would be of particular interest to:
a. a microeconomist.
b. a macroeconomist.
c. neither a microeconomist nor a macroeconomist.
d. both a microeconomist and a macroeconomist.
ANSWER: a
37. The study of microeconomics and macroeconomics differ in that:
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,Name: Class: Date:
Chapter 01 - Introducing the Economic Way of Thinking
a. microeconomics is concerned with the domestic economy and macroeconomics is concerned
only with the international economy.
b. microeconomics examines the individual markets of the economy while macroeconomics
studies the whole economy.
c. microeconomics studies the actions of households and macroeconomics studies the actions of
business firms.
d. microeconomics examines the whole economy while macroeconomics studies the individual
units of the economy.
ANSWER: b
38. Microeconomics deals with the analysis of all the following topics except how:
a. the wages of carpenters are determined.
b. high unemployment rose during the Great Depression.
c. Ford decides how to price its cars.
d. a college student decides how to spend her income.
ANSWER: b
39. Which of the following is the best example of a microeconomics topic?
a. price of a new home
b. the inflation rate
c. the economy's growth rate
d. forecasts of a recession next year
ANSWER: a
40. Arrange the following topics into lists of microeconomic and macroeconomic topics:
- wages of textile workers
- cost of producing 10,000 bookcases
- the economy's annual growth rate
- national demand for fish
- the unemployment rate
- the gold futures market
- money supply
- projected inflation rate next year
a. Microeconomics: wages of textile workers, the unemployment rate, cost of producing 10,000
bookcases, the gold futures market
Macroeconomics: the economy's annual growth rate, money supply, national demand for fish,
projected inflation rate next year
b. Microeconomics: wages of textile workers, cost of producing 10,000 bookcases, the
economy's annual growth rate, unemployment rate
Macroeconomics: national demand for fish, the gold futures market, money supply, projected
inflation rate next year
c. Microeconomics: wages of textile workers, cost of producing 10,000 bookcases, the gold
futures market, national demand for fish
Macroeconomics: the economy's annual growth rate, the unemployment rate, money supply,
projected inflation rate next year
d. Microeconomics: the economy's annual growth rate, the unemployment rate, money supply,
projected inflation rate next year
Macroeconomics: wages of textile workers, cost of producing 10,000 bookcases, the gold
futures market, national demand for fish
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Chapter 01 - Introducing the Economic Way of Thinking
ANSWER: c
41. Which of the following is included in the study of macroeconomics?
a. wage rate of Ford’s assembly-line workers
b. prices of automobiles
c. national unemployment
d. price of silver and gold
ANSWER: c
42. A television network newscaster reports that the national inflation rate the past year equaled 4 percent.
This report would be of particular interest to a:
a. microeconomist.
b. normative economist.
c. macroeconomist.
d. social science economist.
ANSWER: c
43. Macroeconomics deals with the analysis of all of the following questions except:
a. Why do national economies grow?
b. How does Microsoft price its software packages?
c. How does a central bank influence inflation?
d. Why does a country experience recessions?
ANSWER: b
44. Which of the following would be studied by a macroeconomist rather than a microeconomist?
a. shipping rates
b. price of corporate stock
c. market price of Japanese cars
d. national unemployment rate
ANSWER: d
45. The question "why do national economies grow" would be a macroeconomic, rather than a
microeconomic topic, because it:
a. relates to the economy as a whole.
b. studies a single market.
c. considers the decisions of one industry.
d. depends on the actions of suppliers.
ANSWER: a
46. Which of the following statements best illustrates the form of an economic theory?
a. If A, then B.
b. If A, then B, when C, D, E, and F are also changing.
c. A, B, and C all occurred at the same time.
d. If A, then B, other things held constant.
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