Test Bank For Economics

Test Bank For Economics 1 st Edition By Dean Karlan Jonathan Morduch (All Chapters, 100% Original Verified, A+ Grade) Answers At The End Of Each Chapter 1 / 4

1-1 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Chapter 01 Economics and Life Multiple Choice Questions

1.The study of economics can help us:

• be a smarter voter.
• better understand the impacts of public policies.
• make the best choices around how to spend our time and money.
• All of these are true.

2.Economics is the study of:

• the government's decision making process.
• why state and federal governments disagree.
• the study of how people manage resources.
• All of these are true.

3.The principles of economics can explain:

• why people choose to work or go to college.
• why a country might prosper.
• why the value of money changes over time.
• Economics can explain all of these things. 2 / 4

1-2 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

4.Decisions about how to allocate resources are made by:

• individuals.
• businesses.
• governments.
• Resource allocation decisions are made by all of these.

5.Which of the following statements best describes the study of economics?

• Economics studies how the Federal Reserve handles fluctuation in business cycles.
• Economics studies how individuals and groups manage resources.
• Economics studies how people maximize returns in the stock market.
• Economics studies how governments determine appropriate tax rates.

6.Alan could apply the principles of economic decision making to:

• decide how to spend his paycheck.
• which girl to marry.
• what to have for dinner.
• All of these are true.

7.Which of the following is not considered an economic resource?

• Real estate
• Personal relationships
• Cash
• These are all examples of a resource. 3 / 4

1-3 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

8. The two broad fields that make up the subject of economics are:

• microeconomics and macroeconomics.

• personal investments and business investments.

• fiscal policy and monetary policy.

• imports and exports.

• Which of the following could be considered microeconomic issue?

• The local university decides to raise tuition for online course offerings.

• Zimbabwe has experienced a decline in inflation.

• The economic growth rate was reported at 2.4 percent in the first quarter of 2013 for the

United States.

• The unemployment rate in Greece is 22.8 percent.

• Which of the following could be considered a microeconomic issue?

• A family decides to drive their child to school instead of relying on a school bus.

• Apple releases a new version of the iPhone.

• Coors Light packages alcohol in bottles that turn blue when cold.

• All of these are examples of microeconomic issues.

• Disney World decides to charge local residents a lower price than other park visitors. This

would fall under which field of economics?

• Macroeconomics

• Public policy

• Customer service

• Microeconomics

• / 4