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Name: Class: Date: Chapter 01 - Introducing the Economic Way of Thinking Copyright Cengage Learning. Powered by Cognero. Page 1 Multiple Choice
1.When economists say scarcity, they mean:
- there are only a limited number of consumers who would be interested in purchasing goods.
- human wants exceed 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.
ANSWER: b
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.
- the desire for goods and services exceeds our ability to produce them with the limited resources available.
ANSWER: d
3.Scarcity is a problem:
- measured by the amount of goods available.
- of the poor, but not the rich.
- because human wants are unlimited while resources are limited.
- only in industrialized economies.
ANSWER: c
4.Scarcity:
- is a problem only in industrialized economies.
- is a condition measured by the quantity of goods available.
- exists everywhere because human wants can never be satisfied.
- is a problem only in poor economies.
ANSWER: c
5.Scarcity:
- exists because resources are unlimited while human wants are limited.
- means we are unable to have as many goods and services or as much time for activities as we would like to
- will likely be eliminated as technology continues to expand.
- is not an issue addressed in economics.
have.
ANSWER: b
6.The finite nature of the economy's resource base:
- will be solved if only we would learn to conserve.
- is only a problem in developing countries.
- will be solved as technology advances.
- will always be with us.
ANSWER: d
MacroEconomics for Today, 11e Irvin Tucker (Test Bank All Chapters, 100% Original Verified, A+ Grade) 1 / 4
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7. Human wants:
- are unfilled only in the poorer countries of the world.
- can be completely satisfied by advancing technology.
- can never be fully satisfied.
- only apply to necessities.
ANSWER: c
- 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.
- 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.
ANSWER: c
9. The perpetual problem in economics is:
- our inability to work together effectively.
- 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.
ANSWER: b
10. Wealthy families wanting finer homes and nicer vacations exemplify:
- capital.
- production.
- resources.
- scarcity.
ANSWER: d
11. People are forced to make choices because of:
- unlimited wants and unlimited resources.
- limited wants and unlimited resources.
- unlimited wants and limited resources.
- limited wants and limited resources.
ANSWER: c
- Relate the term scarcity to the action(s) it causes.
- Scarcity causes developed nations to have more material goods than developing nations.
- Scarcity causes fewer technological advances.
- Scarcity forces people to want more material goods.
- Scarcity forces everyone to make choices.
ANSWER: d
- Which of the following is true of resources?
- Resources are outputs from the production of goods and services. 2 / 4
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- A $1,000 investment is an example of a capital resource.
- Entrepreneurship combines resources to produce innovative products.
- Land resources do not include water.
ANSWER: c
14. Natural resources are:
- not considered scarce because no one pays for them.
- rarely used in production.
- included in the category of resources called land.
- available in unlimited quantities.
ANSWER: c
- Which of the following would an economist classify as capital?
- 100 shares of Microsoft stock
- $50 bill
- credit card
- lawyer's personal computer
ANSWER: d
16. An entrepreneur is a(n):
- individual who has much education.
- 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.
ANSWER: b
- Which of the following is not an example of a factor of production?
- A forest
- A computer program
- An assembly-line worker
- Dollars
ANSWER: d
18. An economics textbook is an example of:
- capital.
- labor.
- a natural resource.
- entrepreneurship.
ANSWER: a
- The mental and physical capacity of workers to produce goods and services is known as:
- labor.
- entrepreneurship.
- value judgment. 3 / 4
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- product sensitivity.
ANSWER: a
20. The services of farmers are an example of:
- capital.
- a natural resource.
- labor.
- entrepreneurship.
ANSWER: c
- 100 shares of stock in General Motors is considered which type of resource?
- land
- labor
- capital
- It is not a resource.
ANSWER: d
- Which of the following is not an example of a capital input?
- 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
ANSWER: a
23. A factor of production is the same as:
- the amount of a good produced.
- the price of a good.
- an opportunity cost.
- a resource.
ANSWER: d
24. All of the following are examples of capital except:
- the robot used to help produce your car.
- the classroom in which you learn.
- the factory that produces the costume jewelry you buy.
- an uncut diamond that you discover in your backyard.
ANSWER: d
25. The silly clothes worn by a circus clown are an example of:
- a natural resource.
- capital goods.
- labor.
- entrepreneurship.
ANSWER: b
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