A The study of the most equitable distribution of scarce resources.

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Michael Lanyi Ragan Microeconomics Seventeenth Canadian Edition Christopher T.S. Ragan NOTE: (For Complete File, Download link at the end of this File) 1 / 4

1 Copyright © 2023 Pearson Canada, Inc.Microeconomics - Canadian Ed., 17e (Ragan et al.) Chapter 1 Economic Issues and Concepts

1.1 What Is Economics?

1) Which of the following statements provides the best definition of economics?

• The study of the most equitable distribution of scarce resources.
• The study of the use of scarce resources to satisfy unlimited human wants.
• The study of the production of goods and services.
• The study of the productive capacity of a nation's factors of production.
• The study of production and increasing its efficiency.

Answer: B

Diff: 1 Type: MC

Topic: 1.1a. economics/resources

Skill: Recall

Learning Obj.: 1-1 Explain the importance of scarcity, choice, and opportunity cost, and how each is illustrated by the production possibilities boundary.

Category: Qualitative

2) Society's resources are often divided into broad categories. They are

• goods and services.
• factors of consumption.
• land, labour, and capital.
• population and natural resources.
• tangible commodities and intangible commodities.

Answer: C

Diff: 1 Type: MC

Topic: 1.1a. economics/resources

Skill: Recall

Learning Obj.: 1-1 Explain the importance of scarcity, choice, and opportunity cost, and how each is illustrated by the production possibilities boundary.

Category: Qualitative

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2 Copyright © 2023 Pearson Canada, Inc.3) Consider the following list: a worker with training in video gaming technology, 10 hectares of arable land in southern Ontario, a fishing trawler in Nova Scotia, an ice-cream truck at a park in Quebec. Each of these is an example of

• a factor of production.
• a capital resource.
• a commodity.
• goods and services.
• an economic service.

Answer: A

Diff: 1 Type: MC

Topic: 1.1a. economics/resources

Skill: Applied

Learning Obj.: 1-1 Explain the importance of scarcity, choice, and opportunity cost, and how each is illustrated by the production possibilities boundary.

Category: Qualitative

4) Which of the following is NOT considered a "factor of production" in economics?

• the espresso machine at your local cafe
• the barista who makes the coffee
• the espresso drink you purchase
• the wood stir sticks
• the land on which the cafe sits

Answer: C

Diff: 2 Type: MC

Topic: 1.1a. economics/resources

Skill: Applied

Learning Obj.: 1-1 Explain the importance of scarcity, choice, and opportunity cost, and how each is illustrated by the production possibilities boundary.

Category: Qualitative

5) Consider the following factors of production:

a pharmaceutical research centre, a hairstylist's scissors, Google headquarters, a cloud computing system, and a stapler at a checkout counter. Each of these is an example of

• land.
• goods.
• services.
• capital.
• labour.

Answer: D

Diff: 2 Type: MC

Topic: 1.1a. economics/resources

Skill: Applied

Learning Obj.: 1-1 Explain the importance of scarcity, choice, and opportunity cost, and how each is illustrated by the production possibilities boundary.

Category: Qualitative

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3 Copyright © 2023 Pearson Canada, Inc.6) Cars, computers, crayons and clothing are examples of

• land.
• goods.
• services.
• capital.
• labour.

Answer: B

Diff: 2 Type: MC

Topic: 1.1a. economics/resources

Skill: Applied

Learning Obj.: 1-1 Explain the importance of scarcity, choice, and opportunity cost, and how each is illustrated by the production possibilities boundary.

Category: Qualitative

7) Theatre performances, haircuts, internet access, and education are examples of

• land.
• goods.
• services.
• capital.
• labour.

Answer: C

Diff: 2 Type: MC

Topic: 1.1a. economics/resources

Skill: Applied

Learning Obj.: 1-1 Explain the importance of scarcity, choice, and opportunity cost, and how each is illustrated by the production possibilities boundary.

Category: Qualitative

8) Goods (e.g., shoes and cellphones) are ________, while services (e.g., education and healthcare) are ________.

• intangible; tangible
• tangible; factors of production
• factors of production; scarcity
• intangible; factors of production
• tangible; intangible

Answer: E

Diff: 2 Type: MC

Topic: 1.1a. economics/resources

Skill: Applied

Learning Obj.: 1-1 Explain the importance of scarcity, choice, and opportunity cost, and how each is illustrated by the production possibilities boundary.

Category: Qualitative

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