Answers Included ✅
Chapter 01 2ce - Miller
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) The economic way of thinking will help you 1)
A) analyze solutions to economic problems.
B) make better decisions concerning your education.
C) make decisions in financing your home.
D) all of these
2) Economic analysis is used 2)
A) only by policy makers to make policy decisions.
B) only by instructors and students in economics to understand the world.
C) only by business people to increase profits.
D) in decision making.
3) Economic analysis is a tool that 3)
A) makes everyone rich.
B) aids decision making.
C) helps us understand why people make mistakes.
D) helps us forgive selfish people.
4) Economics is best defined as the 4)
A) study of how people make decisions to satisfy their wants.
B) study of why people do not react to incentives.
C) study of individual self-interests.
D) process by which goods are sold in free markets.
5) Economics can be described as the study of how people allocate ________ resources to satisfy 5)
________ wants.
A) limited; limited B) unlimited; limited
C) limited; unlimited D) unlimited; unlimited
6) Which statement most accurately describes economics? 6)
A) Economics is the study of social values a society should choose.
B) Economics is the study of how people make money.
C) Economics is the study of how people make choices to satisfy their wants.
D) Economics is the study of how to eliminate scarcity.
7) In economic analysis, people's resources are 7)
A) unlimited and their wants are limited.
B) limited and their wants are also limited.
C) limited and their wants are unlimited.
D) unlimited and their wants are also unlimited.
8) In economics, items that are used to produce goods and services are known as 8)
A) outputs. B) wants. C) resources. D) needs.
1
, 9) In economics, all the items that people would consume if they had unlimited income are known 9)
as
A) aggregates. B) outputs. C) wants. D) needs.
10) In economics, ________ are limited but ________ are unlimited. 10)
A) money; ideas B) resources; wants
C) wants; resources D) ideas; money
11) Economics is the study of how 11)
A) preferences are determined. B) people make choices.
C) people become selfish. D) psychology influences preferences.
12) A fundamental aspect of economics is to 12)
A) ensure that every firm makes a profit.
B) satisfy all our wants.
C) analyze how choices are made.
D) make sure that we always have sufficient resources.
13) Economics is the study of 13)
A) how to get rich.
B) how people allocate their limited resources to satisfy their unlimited wants.
C) why people want certain goods and services rather than other goods and services.
D) how people spend their income.
14) Economics is the study of 14)
A) nonhuman phenomena. B) the physical sciences.
C) scarce resources and unlimited wants. D) the determinants of preferences.
15) Economics deals with 15)
A) how to satisfy limited human wants.
B) how to profit from the stock market.
C) how individuals allocate scarce resources to satisfy unlimited human wants.
D) how society allocates unlimited resources.
16) Economics is the study of 16)
A) ceteris paribus.
B) how to own as many resources as possible.
C) the way people think rather than the way they act.
D) how people allocate their limited resources to satisfy their unlimited wants.
17) Economic resources are 17)
A) all the items that people would purchase if they had limited wants.
B) items of value that are used to make other things that satisfy people's wants.
C) all the unlimited items that people would purchase with limited income.
D) the total planned expenditures throughout the nation.
2
,18) Economics deals with choices 18)
A) that people normally do not make.
B) that involve the wants of individuals.
C) that involve what people only need to survive.
D) that people make without self-motivated interest.
19) Economics is a social science that involves the study of how individuals 19)
A) develop their goals and objectives in life.
B) pursue happiness.
C) choose among alternatives to satisfy their unlimited wants.
D) develop their tastes and preferences.
20) Economics is a part of the 20)
A) social sciences. B) hard sciences.
C) natural sciences. D) biological sciences.
21) Wants are 21)
A) another term for needs.
B) the things people consume with their income.
C) the things people would consume if they had unlimited incomes.
D) all the things people really need in order to live comfortably.
22) The primary purpose of economics is to understand how people make 22)
A) money. B) mistakes.
C) a comfortable living. D) choices.
23) The primary objective of economics is 23)
A) to learn how to make the most profits with a given amount of resources.
B) to study why some people are never happy with the resources they have.
C) to learn how to create more resources.
D) to study how people make choices with limited resources.
24) The basic economic problem is a situation of 24)
A) both limited resources and limited wants.
B) limited resources and unlimited wants.
C) limited incomes and unlimited choices.
D) unlimited incomes and limited choices.
25) Economics is the study of how people make 25)
A) money. B) life easy.
C) subjective judgments. D) choices.
26) Economics is a 26)
A) natural science. B) physical science.
C) hard science. D) social science.
3
, 27) Economics is a study of 27)
A) personal finance.
B) the allocation of scarce resources.
C) how to run a business successfully.
D) how to make money in the stock market.
28) Economics is the study of 28)
A) earning the most income.
B) the allocation of scarce resources to satisfy unlimited wants.
C) why some people want certain goods and services.
D) ways to use fewer resources.
29) Resources are 29)
A) what people would buy if their income was unlimited.
B) used to produce goods and services to satisfy people's wants.
C) unlimited.
D) able to be replicated in large quantities.
30) ________ are the things that are used to produce items that satisfy people's wants. 30)
A) Costs B) Production possibilities curves
C) Resources D) Concepts
31) Economics is most precisely defined as 31)
A) a study of how culture evolves in different geographic areas.
B) the same as the study of finance and management.
C) a study of what people need to survive.
D) the study of how people make choices.
32) Economics 32)
A) is concerned with unlimited wants. B) is a social science.
C) is concerned with limited resources. D) all of these are correct.
33) Which of the following is not a focus of the study of economics? 33)
A) unemployment B) prices in particular markets
C) inflation D) how individual preferences are formed
34) Because resources are scarce relative to wants, the study of economics concerns 34)
A) how individuals, businesses, and governments make choices.
B) how money is used to buy what people want.
C) how money is important to people.
D) None of these are correct.
35) In economics 35)
A) both resources and wants are unlimited.
B) resources are limited but wants are unlimited.
C) resources are unlimited but wants are limited.
D) both resources and wants are limited.
4
Chapter 01 2ce - Miller
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) The economic way of thinking will help you 1)
A) analyze solutions to economic problems.
B) make better decisions concerning your education.
C) make decisions in financing your home.
D) all of these
2) Economic analysis is used 2)
A) only by policy makers to make policy decisions.
B) only by instructors and students in economics to understand the world.
C) only by business people to increase profits.
D) in decision making.
3) Economic analysis is a tool that 3)
A) makes everyone rich.
B) aids decision making.
C) helps us understand why people make mistakes.
D) helps us forgive selfish people.
4) Economics is best defined as the 4)
A) study of how people make decisions to satisfy their wants.
B) study of why people do not react to incentives.
C) study of individual self-interests.
D) process by which goods are sold in free markets.
5) Economics can be described as the study of how people allocate ________ resources to satisfy 5)
________ wants.
A) limited; limited B) unlimited; limited
C) limited; unlimited D) unlimited; unlimited
6) Which statement most accurately describes economics? 6)
A) Economics is the study of social values a society should choose.
B) Economics is the study of how people make money.
C) Economics is the study of how people make choices to satisfy their wants.
D) Economics is the study of how to eliminate scarcity.
7) In economic analysis, people's resources are 7)
A) unlimited and their wants are limited.
B) limited and their wants are also limited.
C) limited and their wants are unlimited.
D) unlimited and their wants are also unlimited.
8) In economics, items that are used to produce goods and services are known as 8)
A) outputs. B) wants. C) resources. D) needs.
1
, 9) In economics, all the items that people would consume if they had unlimited income are known 9)
as
A) aggregates. B) outputs. C) wants. D) needs.
10) In economics, ________ are limited but ________ are unlimited. 10)
A) money; ideas B) resources; wants
C) wants; resources D) ideas; money
11) Economics is the study of how 11)
A) preferences are determined. B) people make choices.
C) people become selfish. D) psychology influences preferences.
12) A fundamental aspect of economics is to 12)
A) ensure that every firm makes a profit.
B) satisfy all our wants.
C) analyze how choices are made.
D) make sure that we always have sufficient resources.
13) Economics is the study of 13)
A) how to get rich.
B) how people allocate their limited resources to satisfy their unlimited wants.
C) why people want certain goods and services rather than other goods and services.
D) how people spend their income.
14) Economics is the study of 14)
A) nonhuman phenomena. B) the physical sciences.
C) scarce resources and unlimited wants. D) the determinants of preferences.
15) Economics deals with 15)
A) how to satisfy limited human wants.
B) how to profit from the stock market.
C) how individuals allocate scarce resources to satisfy unlimited human wants.
D) how society allocates unlimited resources.
16) Economics is the study of 16)
A) ceteris paribus.
B) how to own as many resources as possible.
C) the way people think rather than the way they act.
D) how people allocate their limited resources to satisfy their unlimited wants.
17) Economic resources are 17)
A) all the items that people would purchase if they had limited wants.
B) items of value that are used to make other things that satisfy people's wants.
C) all the unlimited items that people would purchase with limited income.
D) the total planned expenditures throughout the nation.
2
,18) Economics deals with choices 18)
A) that people normally do not make.
B) that involve the wants of individuals.
C) that involve what people only need to survive.
D) that people make without self-motivated interest.
19) Economics is a social science that involves the study of how individuals 19)
A) develop their goals and objectives in life.
B) pursue happiness.
C) choose among alternatives to satisfy their unlimited wants.
D) develop their tastes and preferences.
20) Economics is a part of the 20)
A) social sciences. B) hard sciences.
C) natural sciences. D) biological sciences.
21) Wants are 21)
A) another term for needs.
B) the things people consume with their income.
C) the things people would consume if they had unlimited incomes.
D) all the things people really need in order to live comfortably.
22) The primary purpose of economics is to understand how people make 22)
A) money. B) mistakes.
C) a comfortable living. D) choices.
23) The primary objective of economics is 23)
A) to learn how to make the most profits with a given amount of resources.
B) to study why some people are never happy with the resources they have.
C) to learn how to create more resources.
D) to study how people make choices with limited resources.
24) The basic economic problem is a situation of 24)
A) both limited resources and limited wants.
B) limited resources and unlimited wants.
C) limited incomes and unlimited choices.
D) unlimited incomes and limited choices.
25) Economics is the study of how people make 25)
A) money. B) life easy.
C) subjective judgments. D) choices.
26) Economics is a 26)
A) natural science. B) physical science.
C) hard science. D) social science.
3
, 27) Economics is a study of 27)
A) personal finance.
B) the allocation of scarce resources.
C) how to run a business successfully.
D) how to make money in the stock market.
28) Economics is the study of 28)
A) earning the most income.
B) the allocation of scarce resources to satisfy unlimited wants.
C) why some people want certain goods and services.
D) ways to use fewer resources.
29) Resources are 29)
A) what people would buy if their income was unlimited.
B) used to produce goods and services to satisfy people's wants.
C) unlimited.
D) able to be replicated in large quantities.
30) ________ are the things that are used to produce items that satisfy people's wants. 30)
A) Costs B) Production possibilities curves
C) Resources D) Concepts
31) Economics is most precisely defined as 31)
A) a study of how culture evolves in different geographic areas.
B) the same as the study of finance and management.
C) a study of what people need to survive.
D) the study of how people make choices.
32) Economics 32)
A) is concerned with unlimited wants. B) is a social science.
C) is concerned with limited resources. D) all of these are correct.
33) Which of the following is not a focus of the study of economics? 33)
A) unemployment B) prices in particular markets
C) inflation D) how individual preferences are formed
34) Because resources are scarce relative to wants, the study of economics concerns 34)
A) how individuals, businesses, and governments make choices.
B) how money is used to buy what people want.
C) how money is important to people.
D) None of these are correct.
35) In economics 35)
A) both resources and wants are unlimited.
B) resources are limited but wants are unlimited.
C) resources are unlimited but wants are limited.
D) both resources and wants are limited.
4
