DOWNLOAD THE Test Bank for Economics Today 20th Edition Miller
Economics Today, 20e (Miller)
Chapter 2 Scarcity and the World of Trade-Offs
2.1 Scarcity
1) Scarcity arises because
A) resources are limited and are inadequate to meet all human wants.
B) shortages always occur.
C) natural resources are abundant.
D) some people do not behave in a rational manner.
Answer: A
Diff: 2
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
2) Scarcity refers to
A) a shortage in a good or service.
B) the ability of society to consume all that it produces.
C) the inability of society to satisfy all human wants because of limited resources.
D) the inability of an individual to purchase a good or service due to her limited income.
Answer: C
Diff: 1
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
3) Which of the following statements is TRUE about scarcity? A)
Both rich and poor people face the problem of scarcity.
B) Scarcity exists only when supply is insufficient to meet demand.
C) Scarcity exists only when a shortage exists.
D) Scarcity can be eliminated when people earn sufficient incomes.
Answer: A
Diff: 1
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
4) The problem of economic scarcity applies
A) only in countries with no markets to meet people's wants.
B) only in underdeveloped countries, because there are no productive resources in these nations.
C) only to nations with few resources.
D) to the economies of all nations, regardless of their levels of development.
Answer: D
1
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,DOWNLOAD THE Test Bank for Economics Today 20th Edition Miller
Diff: 1
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
5) In every economic system, choices must be made because resources A)
are unlimited, but human desires and wants are limited.
B) are limited, but human desires and wants are unlimited.
C) are unlimited, and so are human desires and wants.
D) are limited, and so are human desires and wants.
Answer: B
Diff: 1
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
6) In the production of goods and services, trade-offs exist because A)
not all production is efficient.
B) society has only a limited amount of productive resources.
C) we have abundant resources to choose from.
D) human wants and needs are limited at a particular point in time.
Answer: B
Diff: 1
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
7) Which of the following statements about economic scarcity is FALSE? A)
Scarcity occurs among the poor and the rich.
B) Scarcity only occurs if there are shortages and people wait in line to buy things.
C) Scarcity results from not having enough resources to produce all the things we want.
D) Scarcity results in the necessity to make choices.
Answer: B
Diff: 1
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
8) Which of the following statements is FALSE?
A) Economic goods are available in desired quantities at a zero price.
B) A good is anything that gives satisfaction or happiness to individuals.
C) Services are intangible goods such as dry cleaning, hospital care, and restaurant meal
preparation.
D) Wants are unlimited and include all material and nonmaterial desires.
2
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,DOWNLOAD THE Test Bank for Economics Today 20th Edition Miller
Answer: A
Diff: 1
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
9) Which of the following statements about scarcity is TRUE? A)
Scarcity occurs only among less developed countries.
B) Scarcity exists in all societies.
C) Scarcity is a problem only for greedy people.
D) Scarcity is a problem only in countries that do not use markets to organize economic activity.
Answer: B
Diff: 1
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
10) In 2020, tornadoes damaged parts of the U.S. Midwest, destroying homes, businesses,
schools, and infrastructure. In strictly economic terminology, these tornadoes are said to have
caused
A) scarcity, because the damages made food and shelter scarce.
B) scarcity, because some goods were difficult to get.
C) shortages, because supplies were cut off and goods were destroyed.
D) trade-offs, because some areas of the country were damaged when others were not. Answer:
C
Diff: 2
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
11) Scarcity implies that people must A)
be irrational.
B) be selfish.
C) make choices.
D) earn as much as income as they are able to.
Answer: C
Diff: 1
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
12) Scarcity
A) does not exist in the United States.
B) applies only to developing countries.
3
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, DOWNLOAD THE Test Bank for Economics Today 20th Edition Miller
C) can be reduced with more efficient production methods.
D) cannot be avoided in the world.
Answer: D
Diff: 2
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
13) The difference between scarcity and a shortage is that
A) scarcity is caused by poverty and shortages are caused by natural disasters.
B) shortages are a type of scarcity caused by natural disasters while scarcity is caused by human
errors.
C) scarcity always is a part of human life while shortages usually are temporary.
D) shortages are always part of human life while scarcity is usually temporary. Answer: C
Diff: 3
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
14) Which of the following is the best example of scarcity?
A) The Talking Teddy is a surprise holiday hit, resulting in long lines of consumers trying to
purchase the limited number of available Teddies.
B) Fred only gets a one-hour lunch break and each day must decide between working out at
the gym or socializing with his colleagues.
C) The local market's buy-one-get-one-free sale on strawberries results in more people
wanting the berries than producers are able and willing to supply.
D) Pokemon Go is the most popular cell-phone app that can be downloaded free from an
app store. Answer: B
Diff: 2
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
15) Scarcity is caused by
A) unlimited wants running up against limited economic resources.
B) a company's slow production speed.
C) an individual's budget that is insufficient to cover the expenses of certain goods or services.
D) shortages.
Answer: A
Diff: 1
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
4
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mynursytest.store
Economics Today, 20e (Miller)
Chapter 2 Scarcity and the World of Trade-Offs
2.1 Scarcity
1) Scarcity arises because
A) resources are limited and are inadequate to meet all human wants.
B) shortages always occur.
C) natural resources are abundant.
D) some people do not behave in a rational manner.
Answer: A
Diff: 2
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
2) Scarcity refers to
A) a shortage in a good or service.
B) the ability of society to consume all that it produces.
C) the inability of society to satisfy all human wants because of limited resources.
D) the inability of an individual to purchase a good or service due to her limited income.
Answer: C
Diff: 1
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
3) Which of the following statements is TRUE about scarcity? A)
Both rich and poor people face the problem of scarcity.
B) Scarcity exists only when supply is insufficient to meet demand.
C) Scarcity exists only when a shortage exists.
D) Scarcity can be eliminated when people earn sufficient incomes.
Answer: A
Diff: 1
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
4) The problem of economic scarcity applies
A) only in countries with no markets to meet people's wants.
B) only in underdeveloped countries, because there are no productive resources in these nations.
C) only to nations with few resources.
D) to the economies of all nations, regardless of their levels of development.
Answer: D
1
Copyright © 2021 Pearson Education, Inc.
mynursytest.store
,DOWNLOAD THE Test Bank for Economics Today 20th Edition Miller
Diff: 1
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
5) In every economic system, choices must be made because resources A)
are unlimited, but human desires and wants are limited.
B) are limited, but human desires and wants are unlimited.
C) are unlimited, and so are human desires and wants.
D) are limited, and so are human desires and wants.
Answer: B
Diff: 1
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
6) In the production of goods and services, trade-offs exist because A)
not all production is efficient.
B) society has only a limited amount of productive resources.
C) we have abundant resources to choose from.
D) human wants and needs are limited at a particular point in time.
Answer: B
Diff: 1
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
7) Which of the following statements about economic scarcity is FALSE? A)
Scarcity occurs among the poor and the rich.
B) Scarcity only occurs if there are shortages and people wait in line to buy things.
C) Scarcity results from not having enough resources to produce all the things we want.
D) Scarcity results in the necessity to make choices.
Answer: B
Diff: 1
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
8) Which of the following statements is FALSE?
A) Economic goods are available in desired quantities at a zero price.
B) A good is anything that gives satisfaction or happiness to individuals.
C) Services are intangible goods such as dry cleaning, hospital care, and restaurant meal
preparation.
D) Wants are unlimited and include all material and nonmaterial desires.
2
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mynursytest.store
,DOWNLOAD THE Test Bank for Economics Today 20th Edition Miller
Answer: A
Diff: 1
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
9) Which of the following statements about scarcity is TRUE? A)
Scarcity occurs only among less developed countries.
B) Scarcity exists in all societies.
C) Scarcity is a problem only for greedy people.
D) Scarcity is a problem only in countries that do not use markets to organize economic activity.
Answer: B
Diff: 1
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
10) In 2020, tornadoes damaged parts of the U.S. Midwest, destroying homes, businesses,
schools, and infrastructure. In strictly economic terminology, these tornadoes are said to have
caused
A) scarcity, because the damages made food and shelter scarce.
B) scarcity, because some goods were difficult to get.
C) shortages, because supplies were cut off and goods were destroyed.
D) trade-offs, because some areas of the country were damaged when others were not. Answer:
C
Diff: 2
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
11) Scarcity implies that people must A)
be irrational.
B) be selfish.
C) make choices.
D) earn as much as income as they are able to.
Answer: C
Diff: 1
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
12) Scarcity
A) does not exist in the United States.
B) applies only to developing countries.
3
Copyright © 2021 Pearson Education, Inc.
mynursytest.store
, DOWNLOAD THE Test Bank for Economics Today 20th Edition Miller
C) can be reduced with more efficient production methods.
D) cannot be avoided in the world.
Answer: D
Diff: 2
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
13) The difference between scarcity and a shortage is that
A) scarcity is caused by poverty and shortages are caused by natural disasters.
B) shortages are a type of scarcity caused by natural disasters while scarcity is caused by human
errors.
C) scarcity always is a part of human life while shortages usually are temporary.
D) shortages are always part of human life while scarcity is usually temporary. Answer: C
Diff: 3
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
14) Which of the following is the best example of scarcity?
A) The Talking Teddy is a surprise holiday hit, resulting in long lines of consumers trying to
purchase the limited number of available Teddies.
B) Fred only gets a one-hour lunch break and each day must decide between working out at
the gym or socializing with his colleagues.
C) The local market's buy-one-get-one-free sale on strawberries results in more people
wanting the berries than producers are able and willing to supply.
D) Pokemon Go is the most popular cell-phone app that can be downloaded free from an
app store. Answer: B
Diff: 2
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
15) Scarcity is caused by
A) unlimited wants running up against limited economic resources.
B) a company's slow production speed.
C) an individual's budget that is insufficient to cover the expenses of certain goods or services.
D) shortages.
Answer: A
Diff: 1
Topic: 2.1 Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist AACSB: Analytical thinking
4
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