Achieve Academic Excellence with the [Macroeconomics Principles and Applications,Hall,6e] 2023 Test Bank

CHAPTER 1—WHAT IS ECONOMICS?


MULTIPLE CHOICE

1. The basic problem of economics arises when there are unlimited resources available to fulfill
society's limited wants.
a. True
b. False

ANS: B PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Analytic STA: DISC: Scarcity, tradeoffs, and opportunity
cost
TOP: Scarcity and Individual Choice KEY: Bloom's: Knowledge

2. Economics is the study of choice under conditions of
a. demand
b. supply
c. scarcity
d. opportunity
e. abundance

ANS: C PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Analytic STA: DISC: Scarcity, tradeoffs, and opportunity
cost
TOP: Scarcity and Individual Choice KEY: Bloom's: Comprehension

3. The study of economics would be superfluous if __________ did not exist.
a. demand
b. capital
c. corporations
d. profit
e. scarcity

ANS: E PTS: 1 DIF: Difficulty: Moderate
NAT: BUSPROG: Analytic STA: DISC: Scarcity, tradeoffs, and opportunity
cost
TOP: Scarcity and Individual Choice KEY: Bloom's: Comprehension

4. Which of the following disciplines is not a social science?
a. psychology
b. mathematics
c. economics
d. political science
e. sociology

, ANS: B PTS: 1 DIF: Difficulty: Moderate
NAT: BUSPROG: Analytic
STA: DISC: The Study of economics, and definitions in economics
TOP: Scarcity and Individual Choice KEY: Bloom's: Comprehension

5. What does economics have in common with sociology?
a. Economics and sociology ask fundamentally the same questions.
b. Economics and sociology use the same tools to analyze issues.
c. Both are social sciences.
d. What and how economists study is very similar to what and how sociologists study.
e. Explaining something about society is only a secondary purpose in both areas.

ANS: C PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Analytic
STA: DISC: The Study of economics, and definitions in economics
TOP: Scarcity and Individual Choice KEY: Bloom's: Application

6. Economics is
a. exclusively the study of the markets for stocks and bonds
b. the study of choice under conditions of scarcity
c. exclusively the study of business firms
d. fundamentally the same as sociology
e. applicable only when scarcity is not a problem

ANS: B PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Analytic
STA: DISC: The Study of economics, and definitions in economics
TOP: Scarcity and Individual Choice KEY: Bloom's: Comprehension

7. Economics is
a. the narrow study of how to make money in financial markets
b. the broad study of how to allocate unlimited resources to satisfy limited uses
c. the broad study of how to allocate limited resources to satisfy unlimited wants
d. the narrow study of using stocks and bonds to their maximum potential
e. the narrow study of how to be conservative in financial affairs

ANS: C PTS: 1 DIF: Difficulty: Moderate
NAT: BUSPROG: Analytic
STA: DISC: The Study of economics, and definitions in economics
TOP: Scarcity and Individual Choice KEY: Bloom's: Comprehension

8. Economics is
a. a discipline in the physical sciences
b. a field that deals exclusively with normative issues
c. a field that deals exclusively with positive issues

, d. only useful for examining behavior in capitalist economies
e. a discipline that focuses on how choices are made in society

ANS: E PTS: 1 DIF: Difficulty: Moderate
NAT: BUSPROG: Analytic
STA: DISC: The Study of economics, and definitions in economics
TOP: Scarcity and Individual Choice KEY: Bloom's: Comprehension

9. Economics is the study of
a. how to start a business
b. how to make money in stocks, bonds, and real estate
c. choice under conditions of abundance
d. choice under conditions of scarcity
e. multinational business

ANS: D PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Analytic
STA: DISC: The Study of economics, and definitions in economics
TOP: Scarcity and Individual Choice KEY: Bloom's: Comprehension

10. People and organizations have to make choices about how to allocate time and money because
a. government requires it
b. corporations control our lives
c. time and money are both scarce
d. religious values conflict with economics
e. there are unlimited resources

ANS: C PTS: 1 DIF: Difficulty: Moderate
NAT: BUSPROG: Analytic STA: DISC: Scarcity, tradeoffs, and opportunity
cost
TOP: Scarcity and Individual Choice KEY: Bloom's: Comprehension

11. The basic problem addressed in economics is
a. scarce resources and unlimited wants
b. scarce wants and unlimited resources
c. cost minimization
d. how to manage a financial portfolio
e. unlimited time and unlimited potential

ANS: A PTS: 1 DIF: Difficulty: Moderate
NAT: BUSPROG: Analytic STA: DISC: Scarcity, tradeoffs, and opportunity
cost
TOP: Scarcity and Individual Choice KEY: Bloom's: Knowledge

12. Individuals must make choices because
a. resources are scarce and wants are limited

, b. resources and wants are unlimited
c. assets and wealth are distributed unevenly
d. resources are scarce and wants are unlimited
e. inflation usually outpaces income growth

ANS: D PTS: 1 DIF: Difficulty: Moderate
NAT: BUSPROG: Analytic STA: DISC: Scarcity, tradeoffs, and opportunity
cost
TOP: Scarcity and Individual Choice KEY: Bloom's: Comprehension

13. Which of the following explains why individuals must make choices?
a. competition among firms
b. scarcity of resources
c. inflation
d. changes in the money supply
e. conflict between positive and normative economic statements

ANS: B PTS: 1 DIF: Difficulty: Moderate
NAT: BUSPROG: Analytic STA: DISC: Scarcity, tradeoffs, and opportunity
cost
TOP: Scarcity and Individual Choice KEY: Bloom's: Comprehension

14. Economics is the study of
a. scarcity under conditions of democracy
b. choice within a system of free speech
c. financial markets
d. the role of government in a market system
e. choice under conditions of scarcity

ANS: E PTS: 1 DIF: Difficulty: Moderate
NAT: BUSPROG: Analytic
STA: DISC: The Study of economics, and definitions in economics
TOP: Scarcity and Individual Choice KEY: Bloom's: Comprehension

15. The core problem faced by all economic systems is that
a. scarcity forces each of us to make choices
b. the government must intervene to allocate scarce resources
c. of matching people’s wants with their needs
d. of allocating unlimited resources
e. it needs to maximize each household's material standard of living

ANS: A PTS: 1 DIF: Difficulty: Moderate
NAT: BUSPROG: Analytic STA: DISC: Scarcity, tradeoffs, and opportunity
cost
TOP: Scarcity and Individual Choice KEY: Bloom's: Comprehension