Exam (elaborations)
Test Bank For Economics International Edition 8th Edition Roger A. Arnold
- Course
- Institution
Economics International Edition 8th Edition Roger A. Arnold - Test Bank
[Show more]
Seller
Follow
ExamsExpert
Reviews received
Content preview
,Chapter 1—What Economics Is AboutMULTIPLE CHOICE
1. The author of the text defines economics as the
a. science of efficiency.
b. science of scarcity.
c. study of markets.
d. study of human activity.
ANS: B PTS: 1 DIF: Easy NAT: Analytic
LOC: The study of economics and definitions in economics
2. When economists speak of scarcity, they are referring to the
a. condition in which society is not employing all its resources in an efficient way.
b. condition in which people's wants outstrip the limited resources available to satisfy those
wants.
c. economic condition that exists in only very poor countries of the world.
d. condition in which society produces too many frivolous goods and not enough socially
desirable goods.
ANS: B PTS: 1 DIF: Moderate NAT: Analytic
LOC: Scarcity, tradeoffs, and opportunity cost
3. There would be no subject of economics if
a. wants and resources were finite.
b. wants were finite and resources were infinite.
c. wants were infinite and resources were finite.
d. wants and resources were infinite.
ANS: B PTS: 1 DIF: Easy NAT: Analytic
LOC: The study of economics and definitions in economics
4. Which of the following is not one of the categories of resources?
a. labor
b. government
c. capital
d. entrepreneurship
ANS: B PTS: 1 DIF: Moderate NAT: Analytic
LOC: The study of economics and definitions in economics
5. Produced goods used as inputs for the production of other goods comprise the resource known as
a. natural resources.
b. services.
c. capital.
d. entrepreneurship.
ANS: C PTS: 1 DIF: Easy NAT: Analytic
LOC: The study of economics and definitions in economics
6. "Entrepreneurship" is
a. the talent for organizing the use of land, labor and capital, among other things.
b. skill in influencing government regulators and legislators.
1
, c. accumulated technical knowledge in using labor and capital.
d. knowledge of the particular natural resources to be found in a given area.
ANS: A PTS: 1 DIF: Easy NAT: Analytic
LOC: The study of economics and definitions in economics
7. Some years ago, chemists at 3M Corporation were trying to create a super-strong glue. Somehow they
got their molecules twisted and came up with one of the weakest glues ever made. But, rather than
pouring it down the drain, they tried coating some paper with it. Voila! The "Post-It Note" was born.
In this case, 3M was acting as
a. a utility.
b. a rationer.
c. an entrepreneur.
d. an abstraction.
ANS: C PTS: 1 DIF: Moderate NAT: Analytic
LOC: The study of economics and definitions in economics
8. The physical and mental talents people bring to production processes comprise the resource called
a. entrepreneurship.
b. natural resources.
c. capital.
d. labor.
ANS: D PTS: 1 DIF: Easy NAT: Analytic
LOC: The study of economics and definitions in economics
9. Choice is fundamentally a consequence of
a. living in a world where there are both goods and bads.
b. how wealthy one is.
c. scarcity.
d. opportunity cost.
ANS: C PTS: 1 DIF: Moderate NAT: Analytic
LOC: Scarcity, tradeoffs, and opportunity cost
10. The headline in the newspaper reads "County Supervisors Debate Building New Schools." The
headline relates closest to which economic concept?
a. goods and bads
b. utility
c. choice
d. efficiency
ANS: C PTS: 1 DIF: Moderate NAT: Analytic
LOC: Scarcity, tradeoffs, and opportunity cost
11. The opportunity cost of attending college is
a. the money one spends on college tuition, books, and so forth.
b. the highest valued alternative one forfeits to attend college.
c. the least valued alternative one forfeits to attend college.
d. equal to the salary one will earn when one graduates from college.
ANS: B PTS: 1 DIF: Moderate NAT: Analytic
LOC: Scarcity, tradeoffs, and opportunity cosr
2
, 12. Here are three things you could do if you do not attend your next-door neighbor's barbecue: watch
television with some friends (you value this at $8), read a good novel (you value this at $4), or go in to
work (you could earn $6 during the barbecue). The opportunity cost of going to your neighbor's
barbecue is
a. $6, because this is the only alternative of the three where you actually receive a monetary
payment.
b. $4, because this is the lowest valued alternative forfeited.
c. $8, because this is the highest valued alternative forfeited.
d. $18, because this is the total dollar sum of the alternatives forfeited.
ANS: C PTS: 1 DIF: Moderate NAT: Analytic
LOC: Scarcity, tradeoffs, and opportunity cost
13. It usually takes less time to buy a six-pack of 7-Up, a loaf of bread, and a half-gallon of ice cream at a
small convenience store (such as a 7-Eleven) than at a large, full-service grocery store. Which of the
following persons is most likely to buy these items at a convenience store?
a. a person with high opportunity cost of time
b. a person with low opportunity cost of time
c. a person who is out of work
d. There is not enough information to answer the question.
ANS: A PTS: 1 DIF: Easy NAT: Analytic
LOC: Scarcity, tradeoffs, and opportunity cost
14. Minerals, animals, water and forests are all considered to be the resource known as
a. capital
b. entrepreneurship
c. labor
d. land
e. none of the above
ANS: D PTS: 1 DIF: Easy NAT: Analytic
LOC: The study of economics and definitions in economics
15. The higher the opportunity cost of attending college,
a. the more likely an individual will go to college.
b. the more economics classes an individual will take at college.
c. the fewer economics classes an individual will take at college.
d. the less likely an individual will go to college.
ANS: D PTS: 1 DIF: Easy NAT: Analytic
LOC: Scarcity, tradeoffs, and opportunity cost
16. Which of the following is an example of a positive statement?
a. The U.S. public should devote more resources to education.
b. The poor should pay lower taxes and the rich should pay higher taxes.
c. Soap operas should be taken off television.
d. If you drop a ball from the top of a building, it will fall to the ground.
ANS: D PTS: 1 DIF: Moderate NAT: Analytic
LOC: The study of economics and definitions in economics
17. Attempts to determine "what is" are part of __________ economics.
a. positive
b. normative
3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamsExpert. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $31.03. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79064 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now
Recently viewed by you
