.png){kind=logo}
Principles of Economics, 13e (Global Edition) Karl Case, Ray Fair, Sharon Oster (Test Bank All Chapters, 100% Original Verified, A+ Grade) Part 1: Principles of Macroeconomics 13e: Page 1-1647 Part 2: Principles of Microeconomics 13e: Page 1648-3336 1 / 4
Principles of Macroeconomics, 13e (Case/Fair/Oster) Chapter 1 The Scope and Method of Economics 1.1 Why Study Economics?1) Which of the following is not listed in the book as a reason to study economics?
- to learn a way of thinking
- to understand society
- to be an informed citizen
- to learn how to make lots of money
Answer: D
Diff: 1
Topic: Why Study Economics?
Skill: Fact
Learning Outcome: Micro-1
2) Among the fundamental concepts in economics is
- opportunity cost.
- marginalism.
- all of the above
C)efficient markets.
Answer: D
Diff: 1
Topic: Why Study Economics?
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-1
3) Which of the following is the best definition of economics?A)the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided
- the study of how consumers spend their income
- the study of how business firms decide what inputs to hire and what outputs to produce
- the study of how the federal government allocates tax dollars
Answer: A
Diff: 1
Topic: Why Study Economics?
Skill: Definition
Learning Outcome: Micro-1
Part 1: Principles of Macroeconomics 13e
1
. 2 / 4
4) The rise of the modern factory system in England during the late eighteenth and early nineteenth centuries is known as the
- Great Migration.
- Industrial Revolution.
- Wealth of Nations.
- Dark Ages.
Answer: B
Diff: 1
Topic: Why Study Economics?
Skill: Fact
Learning Outcome: Micro-1
5) Which of the following statements is not correct?
- Economics is a behavioral science.
- In large measure, economics is the study of how people make choices.
- If poverty were eliminated, there would be no reason to study economics.
- Economic analysis can be used to explain how both individuals and societies make decisions.
Answer: C
Diff: 1
Topic: Why Study Economics?
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-1
6) The study of economics
- is a very narrow endeavor.
- is a way of analyzing decision-making processes caused by scarcity.
- is concerned with proving that capitalism is better than socialism.
- focuses on how a business should function.
Answer: B
Diff: 1
Topic: Why Study Economics?
Skill: Definition
Learning Outcome: Micro-1
7) Which of the following is not one of the three fundamental concepts of economics?
- profit maximization
- marginalism
- opportunity cost
- the working of efficient markets
Answer: A
Diff: 1
Topic: Why Study Economics?
Skill: Conceptual
Learning Outcome: Micro-1
2
. 3 / 4
8) Suppose that you purchased a ticket to a jazz festival for $100 from an online ticket broker.Once you arrived at the festival, you discovered that parking costs you an additional $15. In this situation, the additional $15 you pay for parking is an example of
- an economic loss.
- opportunity cost.
- marginal cost.
- an inefficient cost.
Answer: C
Diff: 2
Topic: Why Study Economics?
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-1
9) You have decided that you want to attend a costume party as Black Panther. You estimate that it will cost $40 to assemble your costume. After spending $40 on the costume, you realize that the additional pieces you need will cost you $25 more. The marginal cost of completing the costume is
A) $15.
B) $25.
C) $40.
D) $65.
Answer: B
Diff: 2
Topic: Why Study Economics?
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro-1
10) The concept of opportunity cost
- is relevant only to economics.
- can be applied to the analysis of any decision-making process.
- applies to consumers but not to firms.
- refers only to actual payments and incomes.
Answer: B
Diff: 1
Topic: Why Study Economics?
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-1
3 .
- / 4
.png)