1. When economists say scarcity, they mean:

Chapter 1

1. When economists say scarcity, they mean:

• there are only a limited number of consumers who would be interested in purchasing

goods.*b. the human desire for goods exceeds the available supply of time, goods and resources.

• most people in poorer countries do not have enough goods.
• goods are so expensive that only the rich can afford it.

2. When economists say goods are scarce, they mean:

• consumers are too poor to afford the goods and services available.
• consumers are unwilling to buy goods unless they have very low prices.
• goods are generally freely available from nature in most countries.

*d. the desire for goods and services exceeds our ability to produce them with the limited resources available.

3. Scarcity is a problem:

• measured by the amount of goods available.
• of the poor, but not the rich.

*c. because human wants are unlimited while resources are limited.

• only in industrialized economies.

4. Scarcity:

• is a problem only in industrialized economies.
• is a condition measured by the quantity of goods available.

*c. exists everywhere because human wants can never be satisfied.

• is a problem only in poor economies.

5. Scarcity:

• exists because resources are unlimited while human wants are limited.

*b. means we are unable to have as much as we would like to have.

• will likely be eliminated as technology continues to expand.
• is not an issue addressed in economics.

6. The finite nature of the economy's resource base:

• will be solved if only we would learn to conserve.

(Economics for Today, 10e Irvin B. Tucker) Test Bank, Correct Answer are marked with*)( 1 / 4

• is only a problem in developing countries.
• will be solved as technology advances.

*d. will always be with us.

7. Human wants:

• are unfilled only in the poorer countries of the world.
• can be completely satisfied by advancing technology.

*c. can never be fully satisfied.

• only apply to necessities.

• Which of the following is an example of scarcity?

• Adam has more than enough food to eat each day.
• Benito is wealthy so he has everything he could ever want.

*c. Camden would like to have more designer clothes than he can afford.

• Dennis takes as many vacations as he would like since he won the lottery.

9. The perpetual problem in economics is:

• our inability to work together effectively.

*b. our inability to satisfy everyone's wants with the available resources.

• likely to be solved in resource-rich countries.
• our inability to utilize resources efficiently.

• Wealthy families wanting finer homes and nicer vacations exemplify

• capital.
• production.
• resources.

*d. scarcity.

11. People are forced to make choices because of:

• unlimited wants and unlimited resources.
• limited wants and unlimited resources.

*c. unlimited wants and limited resources.

• limited wants and limited resources.

• Relate the term scarcity to the action(s) it causes.

• Scarcity causes developed nations to have more material goods than developing 2 / 4

nations.

• Scarcity causes fewer technological advances.
• Scarcity forces people to want more material goods.

*d. Scarcity forces everyone to make choices.

• Which of the following is true of resources?

• Resources are outputs from the production of goods and services.
• A $1,000 investment is an example of a capital resource.

*c. Entrepreneurship organizes resources to produce goods and services.

• Land resources do not include water.

14. Natural resources are:

• not considered scarce because no one pays for them.
• rarely used in production.

*c. included in the category of resources called land.

• available in unlimited quantities.

• Which of the following would an economist classify as capital?

• 100 shares of Microsoft stock.
• $50 bill.
• credit card.

*d. lawyer's personal computer.

16. An entrepreneur is a(n):

• individual who has much education.

*b. organizer who seeks profitable opportunities and is willing to accept risks.

• business organization that uses inputs to produce output.
• depot or warehouse for commercial products.

• Which of the following is not an example of a factor of production?

• A forest.
• A computer program.
• A labor leader.

*d. Dollars.

18. An economics textbook is an example of:

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*a. capital.

• labor.
• a natural resource.
• entrepreneurship.

• The mental and physical capacity of workers to produce goods and services is known as:

*a. labor.

• entrepreneurship.
• value judgment.
• product sensitivity.

20. The services of farmers are an example of:

• capital.
• a natural resource.

*c. labor.

• entrepreneurship.

• Which of the following is the best example of a nonrenewable resource?

• forests

*b. oil

• solar power
• clean air

• 100 shares of stock in General Motors is considered which type of resource?

• land
• labor
• capital

*d. It is not a resource.

• Which of the following is not an example of a capital input?

*a. A person’s skills and abilities, which can be employed to produce valuable goods and services.

• Factories and offices where goods and services are produced.
• Tools and equipment.
• Computers used by a company to record inventory, sales, and payroll.

24. A factor of production is the same as:

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