Test Bank for The Microeconomy Today, 17th Edition by Bradley Schiller
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Course
Microeconomics
Institution
Microeconomics
Test Bank for The Microeconomy Today 17e 17th Edition by Bradley Schiller, Karen Gebhardt. Full Chapters test bank are included with answers (Chapter 1 to 23)
PART 1: THE ECONOMIC CHALLENGE
Chapter 1: Economics: The Core Issues
Appendix: Using Graphs
Chapter 2: The U.S. Economy: A Global V...
Answers Included ✅
Chap 01 17e Micro
1) Which of the following is not one of the three core economic issues that must be resolved?
A) how to produce the goods and services we select
B) what to produce with unlimited resources
C) who should get the goods and services we produce
D) what to produce with limited resources
2) The fundamental problem of economics is
A) the law of increasing opportunity costs.
B) the scarcity of resources relative to human wants.
C) how to get government to operate efficiently.
D) how to create employment for everyone.
3) In economics, scarcity means that
A) a shortage of a particular good will cause the price to fall.
B) a production possibilities curve cannot accurately represent the trade-off between two
goods.
C) society's desires exceed resources available.
D) the market mechanism has failed.
4) Given that resources are scarce,
A) a "free lunch" is possible, but only for a limited number of people.
B) opportunity costs are experienced whenever choices are made.
C) poor countries must make choices, but rich countries with abundant resources do not
have to make choices.
D) some choices involve opportunity costs while other choices do not.
5) The fact that there are too few resources to satisfy all our wants is attributed to
A) scarcity.
B) greed.
C) shortages.
D) lack of money.
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,6) There is no such thing as a free lunch because
A) the producer must charge something to cover the cost of production.
B) resources used to produce the lunch could be used to produce other goods and
services.
C) the government must raise taxes to pay for the lunches.
D) no one would pay for lunch anymore if they could get it for free.
7) A consequence of the economic problem of scarcity is that
A) choices must be made about how resources are used.
B) there is never too much of any good or service produced.
C) the production of goods and services must be controlled by the government.
D) the production possibilities curve is bowed outward.
8) The basic factors of production are
A) land, labor, money, and capital.
B) land, labor, money, and inputs.
C) labor and money.
D) land, labor, capital, and entrepreneurship.
9) Factors of production are
A) scarce in every society.
B) scarce only in advanced countries.
C) scarce only in the poorest countries of the world.
D) unlimited in quantity.
10) Which of the following is not a factor of production?
A) A barber's chair.
B) Stock shares for Meta.
C) An individual taking out a loan from a bank to finance the purchase of equipment for
their new factory.
D) A factory that produces new goods and services.
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,11) Which of the following is not a factor of production?
A) a psychiatrist
B) $100,000 cash
C) a bulldozer
D) six thousand acres of farmland
12) With respect to factors of production, which of the following statements is not true?
A) Factors of production are also known as resources.
B) To produce any good or service, it is necessary to have factors of production.
C) Factors of production include land, labor, capital, and entrepreneurship.
D) Only those resources that are privately owned are counted as factors of production.
13) Which of the following is the best example of labor?
A) The water used to make a soft drink.
B) The desks used in an office building.
C) The increased speed employees have gained from performing a job for a while.
D) An individual performing market research before starting a business.
14) Which of the following is the best example of land?
A) the ethanol refined from corn
B) a factory that produces new goods and services
C) the water used to make a soft drink
D) a barber's chair
15) Capital, as economists use the term, refers to
A) the cash needed to start a new business.
B) the costs of operating a business.
C) shares of stock issued by businesses.
D) final goods that are used to produce other goods and services.
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, 16) Which economist argued that free markets unleashed the "animal spirits" of entrepreneurs,
propelling innovation, technology, and growth?
A) Lord Kelvin
B) Kenneth Olsen
C) Irving Fisher
D) John Maynard Keynes
17) The role of the entrepreneur in an economy is to
A) bring the factors of production together and assume the risk of production.
B) work with government planners to determine what goods are produced.
C) arrange bank financing for the owners of new businesses.
D) ensure full employment of labor.
18) Economics can be defined as the study of
A) for whom resources are allocated to increase efficiency.
B) how society spends the income of individuals.
C) how scarce resources are allocated.
D) how governments allocate scarce resources in all command economies.
19) Opportunity cost is
A) measured only in dollars and cents.
B) the total dollar cost to society of producing the goods.
C) the difficulty associated with using one good in place of another.
D) what is given up in order to get something else.
20) Opportunity cost may be defined as the
A) the most desired goods or services that are forgone in order to obtain something else.
B) dollar prices paid for final goods and services.
C) dollar cost of producing a particular product.
D) difference between wholesale and retail prices.
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