Macroeconomics For Life:

Test Bank for

Macroeconomics For Life:

Smart Choices for All?Updated Second Edition Avi J. Cohen 1 / 4

1 Copyright © 2021 Pearson Canada Inc.

Macroeconomics for Life: Smart Choices for All?, Updated 2e (Cohen)

Chapter 1 What's in Economics for You? Scarcity, Opportunity Cost, Trade, and Models 1.1 Are You Getting Enough? Scarcity and Choice 1) Economics is about

• making money.
• greed.
• making choices because of scarcity.
• overcoming scarcity.
• overcoming greed.

Answer: C

Diff: 1 Type: MC Page Ref: 4

Skill: Recall

Objective: 1.1 Explain scarcity and describe why you must make smart choices among your wants.2) Economics is about

• how individuals make the best possible choices.
• how businesses make the best possible choices.
• how governments make the best possible choices.
• how choices interact in markets.
• all of the above.

Answer: E

Diff: 1 Type: MC Page Ref: 4

Skill: Recall

Objective: 1.1 Explain scarcity and describe why you must make smart choices among your wants.3) Which of the following limits our ability to get everything we want?

• scarcity
• specialization
• socialism
• socialization
• time

Answer: E

Diff: 1 Type: MC Page Ref: 4

Skill: Applied

Objective: 1.1 Explain scarcity and describe why you must make smart choices among your wants. 2 / 4

2 Copyright © 2021 Pearson Canada Inc.4) Which of the following limits our ability to get everything we want?

• capitalism
• scarcity
• socialism
• democracy
• money

Answer: E

Diff: 1 Type: MC Page Ref: 4

Skill: Applied

Objective: 1.1 Explain scarcity and describe why you must make smart choices among your wants.5) Some social activists believe that scarcity occurs because we always want more. This idea is called

• activism.
• paternalism.
• monetarism.
• materialism.
• socialism.

Answer: D

Diff: 2 Type: MC Page Ref: 4

Skill: Recall

Objective: 1.1 Explain scarcity and describe why you must make smart choices among your wants.

6) In a world of scarcity,

• all products are free.
• opportunity cost is zero.
• you are not limited by time.
• you do not need to work.
• you must make choices among alternatives.

Answer: E

Diff: 1 Type: MC Page Ref: 4

Skill: Applied

Objective: 1.1 Explain scarcity and describe why you must make smart choices among your wants.

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3 Copyright © 2021 Pearson Canada Inc.7) The inability to satisfy all of our wants is called the problem of

• opportunity cost.
• scarcity.
• incentives.
• marginal cost.
• comparative advantage.

Answer: B

Diff: 1 Type: MC Page Ref: 4

Skill: Applied

Objective: 1.1 Explain scarcity and describe why you must make smart choices among your wants.

8) The problem of scarcity exists

• only in economies without incentives.
• only in economies with incentives.
• in all economies.
• only when people are unemployed.
• now but will be eliminated with economic growth.

Answer: C

Diff: 2 Type: MC Page Ref: 4

Skill: Applied

Objective: 1.1 Explain scarcity and describe why you must make smart choices among your wants.

9) The textbook title - Economics for Life - comes from a quote by George Bernard Shaw.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 4

Skill: Recall

Objective: 1.1 Explain scarcity and describe why you must make smart choices among your wants.10) The textbook title - Economics for Life - comes from the quote "Economy is the art of making the most of life."

Answer: TRUE

Diff: 2 Type: TF Page Ref: 4

Skill: Recall

Objective: 1.1 Explain scarcity and describe why you must make smart choices among your wants.

11) Scarcity is not a problem for a wealthy professional athlete like Tiger Woods.

Answer: FALSE

Diff: 1 Type: TF Page Ref: 4

Skill: Applied

Objective: 1.1 Explain scarcity and describe why you must make smart choices among your wants.

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