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Summary Test bank for Exploring Microeconomics 6th Canadian Edition by Robert L. Sexton
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full download please contact u84757@protonmail.comChapter 1 - The Role and Method of Economics
1. What is economics most concerned with?
a. keeping interest rates low
b. making money in the stock market
c. allocating scarce resources to satisfy unlimited
wants
d. governments’ efficient spending of tax revenues
ANSWER: c
2. What is the central concern of economics?
a. regulating the stock market
b. promoting greed and profit-making behaviour at all costs
c. finding more resources to satisfy everyone's wants
d. making the best use of scarce resources to satisfy our unlimited
wants
ANSWER: d
3. Why is there scarcity?
a. because marginal costs tend to exceed marginal benefits
b. because human wants and needs are limited
c. because Canada has too many people living in poverty
d. because our unlimited wants exceed our limited
resources
ANSWER: d
4. Why does the problem of scarcity exist?
a. because resources are limited, relative to wants
b. because governments fail to intervene in the marketplace
c. because resources are unlimited, relative to wants
d. because the world has many people living in poverty
ANSWER: a
5. What does scarcity result from?
a. government policies
b. people not understanding economics
c. wants that exceed the resources necessary to provide
them
d. a decrease in hard workers
ANSWER: c
6. What causes scarcity?
a. the allocation of goods by prices b. specialization and division of labour
c. unlimited wants and limited resources d. the market mechanism
ANSWER: c
7. What does economics primarily explore?
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Chapter 1 - The Role and Method of Economics
a. how the government allocates its budget among competing political interests
b. how stock and bond prices fluctuate in response to changes in demand or supply
c. how goods and services are produced and distributed in a world with limited
resources
d. how businesses market products under competitive conditions
ANSWER: c
8. What does economics primarily study?
a. how firms compete for profits in the marketplace
b. how limited resources are allocated to satisfy unlimited wants
c. how we deal with unemployed resources
d. how prices are set in the marketplace
ANSWER: b
9. What do economists mean when they state that a good is scarce?
a. People will want to buy more of the good regardless of price.
b. It is impossible to expand the availability of the good.
c. Our wants exceed our limited resources.
d. There is a shortage of goods at the going price.
ANSWER: c
10. Which of the following statements about scarcity is the most accurate?
a. It occurs only in centrally planned economies.
b. It will likely be eliminated by technological progress.
c. It occurs when there are insufficient resources to provide for human
wants.
d. It exists only in poor nations.
ANSWER: c
11. According to most economists, what is the fundamental economic problem?
a. controlling the stock market b. government intervention into
markets
c. solving the problem of poverty d. scarcity and how people deal with it
ANSWER: d
12. What do all economic problems arise from?
a. scarcity b. not enough money
c. unemploymen d. competition
t
ANSWER: a
13. As defined by an economist, what does the word scarcity mean?
a. Consumers are too poor to purchase the available goods and services.
b. Demand exceeds supply at the current market price.
c. The desire for goods exceeds our ability to produce them with limited available
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Chapter 1 - The Role and Method of Economics
resources.
d. Supply exceeds demand at the current market price.
ANSWER: c
14. Which statement best describes the problem of scarcity?
a. Scarcity means that shortages always occur in a market.
b. It is impossible to satisfy unlimited human wants with limited resources.
c. Because of scarcity, individuals do not face trade-offs when making
decisions.
d. As a result of scarcity, individuals do not have the ability to make choices.
ANSWER: b
15. What problem is caused when NOT all human wants can be satisfied through current resources and technology?
a. scarcity b. positive economics
c. unemployment d. marginal costs
ANSWER: a
16. What does economics primarily study?
a. how to interpret corporate balance sheets and income
statements
b. how choices are made because of scarcity
c. how to make money in the stock market
d. how to operate a business
ANSWER: b
17. What do economists mean when they say goods are scarce?
a. Government programs are needed to lift families out of poverty.
b. At the current price, consumers are willing to buy more of a good than suppliers are willing to produce.
c. Consumers do not have enough money to purchase the goods available.
d. The desire for goods and services exceeds our ability to produce them with limited resources.
ANSWER: d
18. Which statement about scarcity is the most accurate?
a. It is a problem that exists only in developing countries.
b. It is a problem only in capitalistic economies.
c. It is a problem that necessitates making choices that result in trade-
offs.
d. It is a problem only in the developed world.
ANSWER: c
19. Which of the following most accurately describes a scarce good?
a. a good for which available resources are insufficient to satisfy unlimited human desires for it
b. a good that is always in demand at any price
c. a good for which there is a shortage at the current market price
d. a good for which it is impossible to increase production any further given the available resources and
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Chapter 1 - The Role and Method of Economics
technology
ANSWER: a
20. Which of the following questions is economics fundamentally concerned with?
a. How are limited wants allocated to satisfy limited resources?
b. How are limited resources allocated to satisfy unlimited
wants?
c. How are scarce resources allocated to satisfy limited wants?
d. How are limited resources allocated to satisfy scarce wants?
ANSWER: b
21. Which statement best describes the study of scarcity?
a. using limited resources to best satisfy our unlimited desires
b. using limited resources to promote full employment and price stability
c. using unlimited resources to promote full employment and price
stability
d. using unlimited resources to best satisfy our unlimited desires
ANSWER: a
22. What is the primary concern of economics?
a. studying limited desires in the face of unlimited resources
b. studying problems such as poverty and unemployment
c. studying production and distribution of goods in a world of unlimited resources
d. studying production and distribution of goods in a world of limited resources
ANSWER: d
23. Which statement about economics is the most accurate?
a. It explores how choices are made between conflicting wants and desires in a world of
scarcity.
b. Its main focus is the analysis of normative statements.
c. It typically uses controlled experiments to learn about consumer and firm behaviour.
d. It uses models that cannot be tested empirically due to the complex nature of the economy.
ANSWER: a
24. What is the solution to solving the fundamental economic problem?
a. to allocate limited resources among competing uses
b. to guarantee all humans have a minimum level of food, shelter, and clean
water
c. to eliminate poverty in the developing world
d. to increase the amount of leisure time available to people
ANSWER: a
25. Which of the following is considered to be our single most precious resource?
a. mone b. oil
y
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