download full file at http://testbankcafe.com
Test Bank to Accompany
Foundations of
Macroeconomics
Volume 1
Seventh Edition
by
Bade/Parkin
Pearson Education
c.2015
6/9/14
,download full file at http://testbankcafe.com
Contents
Chapter 1 Getting Started ..................................................................................................................... 1
Chapter 2 The U.S. and Global Economies..................................................................................... 143
Chapter 3 The Economic Problem ................................................................................................... 212
Chapter 4 Demand and Supply ....................................................................................................... 324
Chapter 5 GDP: A Measure of Total Production and Income ..................................................... 452
Chapter 6 Jobs and Unemployment ................................................................................................ 540
Chapter 7 The CPI and the Cost of Living...................................................................................... 635
,download full file at http://testbankcafe.com
Chapter 1 Getting Started
1.1 Definition and Questions
1) Scarcity exists because
A) human wants exceed the resources available to satisfy them.
B) some individuals have low income.
C) the costs of production are high.
D) some people make bad economic decisions.
E) people take too much leisure time.
Answer: A
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
2) Scarcity
A) is the inability to satisfy all our wants.
B) leads to higher prices.
C) applies only to people living in poverty.
D) is not something that affects very rich people.
E) used to exist everywhere but has been eliminated in advanced economies.
Answer: A
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
3) Scarcity requires that we
A) produce efficiently.
B) learn to limit our wants.
C) have the most rapid economic growth possible.
D) have unlimited resources.
E) make choices about what goods and services to produce.
Answer: E
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
Page 1
Copyright © 2015 Pearson Education, Inc.
, download full file at http://testbankcafe.com
4) Scarcity means that
A) what we can produce with our resources is greater than our material wants.
B) resources are unlimited.
C) wants are greater than what we can produce with our resources.
D) governments must make up for shortages in resources.
E) choices made in self-interest cannot be the same as those made in the social interest.
Answer: C
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Revised
AACSB: Reflective thinking
5) Because human wants are insatiable and unlimited while available resources are limited,
people are said to face the problem of
A) scarcity.
B) why to produce.
C) macroeconomics.
D) microeconomics.
E) social interest versus self-interest.
Answer: A
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
6) Which of the following statements best describes the study of economics? Economics studies
how
A) to organize production so that scarcity does not occur.
B) firms make profits.
C) we make choices in the face of scarcity.
D) to create incentives so that scarcity does not exist.
E) businesses reach decisions.
Answer: C
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
Page 2
Copyright © 2015 Pearson Education, Inc.
Test Bank to Accompany
Foundations of
Macroeconomics
Volume 1
Seventh Edition
by
Bade/Parkin
Pearson Education
c.2015
6/9/14
,download full file at http://testbankcafe.com
Contents
Chapter 1 Getting Started ..................................................................................................................... 1
Chapter 2 The U.S. and Global Economies..................................................................................... 143
Chapter 3 The Economic Problem ................................................................................................... 212
Chapter 4 Demand and Supply ....................................................................................................... 324
Chapter 5 GDP: A Measure of Total Production and Income ..................................................... 452
Chapter 6 Jobs and Unemployment ................................................................................................ 540
Chapter 7 The CPI and the Cost of Living...................................................................................... 635
,download full file at http://testbankcafe.com
Chapter 1 Getting Started
1.1 Definition and Questions
1) Scarcity exists because
A) human wants exceed the resources available to satisfy them.
B) some individuals have low income.
C) the costs of production are high.
D) some people make bad economic decisions.
E) people take too much leisure time.
Answer: A
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
2) Scarcity
A) is the inability to satisfy all our wants.
B) leads to higher prices.
C) applies only to people living in poverty.
D) is not something that affects very rich people.
E) used to exist everywhere but has been eliminated in advanced economies.
Answer: A
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
3) Scarcity requires that we
A) produce efficiently.
B) learn to limit our wants.
C) have the most rapid economic growth possible.
D) have unlimited resources.
E) make choices about what goods and services to produce.
Answer: E
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
Page 1
Copyright © 2015 Pearson Education, Inc.
, download full file at http://testbankcafe.com
4) Scarcity means that
A) what we can produce with our resources is greater than our material wants.
B) resources are unlimited.
C) wants are greater than what we can produce with our resources.
D) governments must make up for shortages in resources.
E) choices made in self-interest cannot be the same as those made in the social interest.
Answer: C
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Revised
AACSB: Reflective thinking
5) Because human wants are insatiable and unlimited while available resources are limited,
people are said to face the problem of
A) scarcity.
B) why to produce.
C) macroeconomics.
D) microeconomics.
E) social interest versus self-interest.
Answer: A
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
6) Which of the following statements best describes the study of economics? Economics studies
how
A) to organize production so that scarcity does not occur.
B) firms make profits.
C) we make choices in the face of scarcity.
D) to create incentives so that scarcity does not exist.
E) businesses reach decisions.
Answer: C
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
Page 2
Copyright © 2015 Pearson Education, Inc.
