Exam (elaborations)
Principles of Macroeconomics by John Sayre-Test Bank
- Module
- Macroeconomics
- Institution
- Macroeconomics
Complete Test Bank with Questions Answers
[Show more]
Content preview
,Chapter 01 - The Economic ProblemChapter 01
The Economic Problem
Multiple Choice Questions
1. What do economists mean when they say that the economy faces scarcity?
A. There are fewer resources available than there were in the 1960s.
B. It is quite evident that the world is running out of resources.
C. The economy is producing far below its capacity to produce.
D. The resources available are not sufficient to produce all that everyone wants.
Accessibility: Keyboard Navigation
Blooms: Remember
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-03 Demonstrate that because scarcity; choice; and opportunity cost are at the heart of economics; efficiency—both
productive and allocative—provides a major cornerstone.
Topic: 01-07 Efficiency and Allocation
2. What do economists assume is true about human wants?
A. They are easily defined.
B. That we are on the verge of being able to satisfy them.
C. They are unlimited.
D. They haven't changed much over the centuries.
Accessibility: Keyboard Navigation
Blooms: Remember
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-03 Demonstrate that because scarcity; choice; and opportunity cost are at the heart of economics; efficiency—both
productive and allocative—provides a major cornerstone.
Topic: 01-07 Efficiency and Allocation
1-1
,Chapter 01 - The Economic Problem
3. Which of the following terms describes the next best alternative that must be sacrificed as a
result of making a particular choice?
A. Microeconomics.
B. Opportunity cost.
C. Macroeconomics.
D. The law of increasing costs.
E. Scarcity.
Accessibility: Keyboard Navigation
Blooms: Remember
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-03 Demonstrate that because scarcity; choice; and opportunity cost are at the heart of economics; efficiency—both
productive and allocative—provides a major cornerstone.
Topic: 01-07 Efficiency and Allocation
4. What is the opportunity cost of a particular product?
A. The price paid for that product.
B. The value put on that product by the person who bought it.
C. The value of the next-best alternative that is given up as a result of buying that particular
product.
D. The combined value of all the other alternatives that are given up as a result of buying that
particular product.
Accessibility: Keyboard Navigation
Blooms: Remember
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-03 Demonstrate that because scarcity; choice; and opportunity cost are at the heart of economics; efficiency—both
productive and allocative—provides a major cornerstone.
Topic: 01-07 Efficiency and Allocation
1-2
, Chapter 01 - The Economic Problem
5. Gwen had only $10 yesterday. She was uncertain whether to go out for lunch or to buy
beer. In the end, she bought beer. Which of the following statements is correct?
A. The choice of the beer and not lunch is an example of constant costs.
B. The cost of buying beer is less than lunch.
C. The opportunity cost of beer is lunch.
D. The opportunity cost of beer is $10.
Accessibility: Keyboard Navigation
Blooms: Analyze
Blooms: Apply
Difficulty: Easy
Learning Objective: 01-03 Demonstrate that because scarcity; choice; and opportunity cost are at the heart of economics; efficiency—both
productive and allocative—provides a major cornerstone.
Topic: 01-07 Efficiency and Allocation
6. Which of the following is correct?
A. Scarcity forces choice which involves opportunity costs.
B. Choice causes scarcity which involves increasing costs.
C. Choice causes scarcity which involves opportunity costs.
D. Scarcity forces choice which involves increasing costs.
Accessibility: Keyboard Navigation
Blooms: Remember
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-03 Demonstrate that because scarcity; choice; and opportunity cost are at the heart of economics; efficiency—both
productive and allocative—provides a major cornerstone.
Topic: 01-07 Efficiency and Allocation
7. What can we say is true as a result of people engaging in voluntary trade?
A. One person gains and the other loses.
B. One person gains while there is a neutral effect on the other person.
C. Both people gain.
D. Neither person gains.
Accessibility: Keyboard Navigation
Blooms: Remember
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-04 Explain why greater trade results in more productive economies.
Topic: 01-09 The Power of Trade
1-3
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 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 premiumbiz379. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £22.69. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
82871 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now