TESTBANK FOR ECONOMIST

TESTBANK FOR ECONOMIST Chapter 1—Thinking like an economist MULTIPLE CHOICE 1. Scarcity is a problem: A . that only poor people face. B . because human wants are limited while resources are unlimited. C . because human wants are unlimited while resources are limited. D . only in third world countries. ANS: C PTS: 1 DIF: Easy REF: The problem of scarcity 2. Scarcity is a situation: A . where people’s needs exceed their resources. B . where people’s wants exceed their resources. C . where the quantity of resources is sufficient to meet all wants. D . where people’s needs exceed other people’s resources. E . where the quantity of resources is sufficient to meet all needs. ANS: B PTS: 1 DIF: Easy REF: The problem of scarcity 3. Which of the following would eliminate scarcity as an economic problem? A . Moderation of people’s competitive instincts. B . Discovery of sufficiently large new energy reserves. C . Resumption of steady productivity growth. D . Economic scarcity cannot be eliminated as long as the resources are limited. ANS: D PTS: 1 DIF: Easy REF: The problem of scarcity 4. The finite nature of the economy’s resource base: A . would be solved if only we would learn to conserve. B . arises out of the insatiable appetite of consumers. C . is only a problem in developing countries. D . will be solved as technology advances. E . will always be with us. ANS: E PTS: 1 DIF: Moderate REF: The problem of scarcity 5. Scarcity: A . is a problem only in the poorer countries of the world. B . will disappear if the country is rich. C . can be solved by rapid advances in technology. D . is a problem that exists in every economy with limited resources. E . is not a problem for the developed countries. ANS: D PTS: 1 DIF: Moderate REF: The problem of scarcity 6. Economists believe that scarcity forces everyone to: A . satisfy all their wants. B . abandon consumer sovereignty. C . make choices. D . create unlimited resources. E . not reveal their wants. ANS: C PTS: 1 DIF: Easy REF: The problem of scarcity 7. The perpetual state of insufficiency of resources to satisfy people’s unlimited wants is: A . not a problem in developed countries. B . a contradiction that cannot be solved. C . completely unrealistic. D . present in the modern economies but not in the past. E the definition of scarcity.