微观经济学题库

Microeconomics^lOe(Parkin)

Chapter1WhatIsEconomics?

1DefinitionofEconomics

1)Alleconomicquestionsareabout

A)howtomakemoney.

B)whattoproduce.

C)howtocopewithscarcity.

D)howtosatisfyallourwants.

Answer:C

Topic:Scarcity

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

2)Alleconomicquestionsarisebecausewe

A)wantmorethanwecanget.

B)wantmorethanweneed.

C)haveanabundanceofresources.

D)havelimitedwantsthatneedtobesatisfied.

Answer:A

Topic:Scarcity

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

3)Economicsisbestdefinedasthestudyofhowpeople,businesses,governments,andsocieties

A)chooseabundanceoverscarcity.

B)makechoicestocopewithscarcity.

C)usetheirinfiniteresources.

D)attainwealth.

Answer:B

Topic:Scarcity

Skill:Conceptual

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

4)Scarcityisasituationinwhich

A)peoplecannotsatisfyalltheirwants.

B)mostpeoplecangetonlybarenecessities.

C)peoplecansatisfyalltheirwants.

D)somepeoplecangetalltheywantandsomecannot.

Answer:A

Topic:Scarcity

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

5)Economistspointoutthatscarcityconfronts

A)neitherthepoornortherich.

B)thepoorbutnottherich.

C)therichbutnotthepoor.

D)boththepoorandtherich.

Answer:D

Topic:Scarcity

Skill:Conceptual

Questionhistory:Previousedition,Chapter1

AACSB:EthicalReasoning

6)Scarcityis

A)ourinabilitytosatisfyallourwants.

B)asituationthatexistsduringeconomicrecessionsbutnotduringeconomicbooms.

C)eliminatedbychoices.

D)aneconomicproblemonlyforpoorpeople.

Answer:A

Topic:Scarcity

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

7)Whenaneconomisttalksofscarcity,theeconomistisreferringtothe

A)abilityofsocietytoemployallofitsresources.

B)abilityofsocietytoconsumeallthatitproduces.

C)inabilityofsocietytosatisfyallhumanwantsbecauseoflimitedresources.

D)abilityofsocietytocontinuallymaketechnologicalbreakthroughsandincreaseproduction.

Answer:C

Topic:Scarcity

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

8)Fundamentaleconomicproblemsbasicallyarisefrom

A)thefactthatsocietyhasmorethanitneeds.

B)turmoilinthestockmarket.

C)theunequaldistributionofincome.

D)ourwantsexceedingourscarceresources.

Answer:D

Topic:Scarcity

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

9)Scarcityexistsbecause

A)societyandpeoplearegreedyandwasteful.

B)ourwantsexceedtheresourcesavailabletosatisfythem.

C)oftheinefficientchoiceswemake.

D)poorpeopleneedmorefoodandothergoods.

Answer:B

Topic:Scarcity

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

10)Scarcitycanbeeliminatedthrough

A)theuseofmarketmechanisms.

B)explorationthathelpsusfindnewresources.

C)wiseuseofourresources.

D)Noneoftheabovebecausescarcitycannotbeeliminated.

Answer:D

Topic:Scarcity

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

11)Asaneconomicconcept,scarcityappliesto

A)bothmoneyandtime.

B)moneybutnottime.

C)timebutnotmoney.

D)neithertimenormoney.

Answer:A

Topic:Scarcity

Skill:Conceptual

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

12)Ineveryeconomicsystem,choicesmustbemadebecauseresourcesareandour

wantsare.

A)unlimited;limited

B)limited;unlimited

C)unlimited;unlimited

D)limited;limited

Answer:B

Topic:Scarcity

Skill:Conceptual

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

13)Theproblemof"scarcity"applies

A)onlyinindustriallydevelopedcountriesbecauseresourcesarescarceinthesecountries.

B)onlyinunderdevelopedcountriesbecausetherearefewproductiveresourcesinthese

countries.

C)Onlyineconomicsystemsthatarejustbeginningtodevelopbecausespecializedresources

arescarce.

D)toalleconomicsystems,regardlessoftheirlevelofdevelopment.

Answer:D

Topic:Scarcity

Skill:Conceptual

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

14)Scarcityrequiresthatpeoplemust

A)cooperate.

B)compete.

C)trade.

D)makechoices.

Answer:D

Topic:Scarcity

Skill:Conceptual

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

15)Peoplemustmakechoicesbecause

A)mostpeopleenjoyshopping.

B)ofscarcity.

C)therearemanygoodsavailable.

D)Noneoftheaboveanswersiscorrect.

Answer:B

Topic:Scarcity

Skill:Conceptual

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

16)Anincentive

A)couldbearewardbutcouldnotbeapenalty.

B)couldbeapenaltybutcouldnotbeareward.

C)couldbeeitherarewardorapenalty.

D)istheoppositeofatradeoff.

Answer:C

Topic:Incentive

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

17)Aninducementtotakeaparticularactioniscalled

A)themarginalbenefit.

B)themarginalcost.

C)opportunitycost.

D)anincentive.

Answer:D

Topic:Incentive

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

18)Economicsisbestdefinedas

A)howpeoplemakemoneyandprofitsinthestockmarket.

B)makingchoicesfromanunlimitedsupplyofgoodsandservices.

C)makingchoiceswithunlimitedwantsbutfacingascarcityofresources.

D)controllingabudgetforahousehold.

Answer:C

Topic:DefinitionofEconomics

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

19)Thestudyofeconomics

A)focusesmainlyonindividualconsumers.

B)arisesfromthefactthatourwantsexceedavailableresources.

C)recognizesthatscarcitydoesnotaffectrichnations.

D)dealsmainlywithmicroeconomics.

Answer:B

Topic:DefinitionofEconomics

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

20)Economicsisbestdefinedasthescienceofchoiceandhowpeoplecopewith

A)differencesinwants.

B)differencesinneeds.

C)scarcity.

D)differenteconomicsystems.

Answer:C

Topic:DefinitionofEconomics

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

21)Economicsisthestudyof

A)thedistributionofsurplusgoodstothoseinneed.

B)affluenceinamorallybankruptworld.

C)thechoiceswemakebecauseofscarcity.

D)waystoreducewantstoeliminatetheproblemofscarcity.

Answer:C

Topic:DefinitionofEconomics

Skill:Conceptual

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

22)Thestudyofthechoicesmadebyindividualsispartofthedefinitionof

A)microeconomics.

B)positiveeconomics.

C)macroeconomics.

D)normativeeconomics.

Answer:A

Topic:MicroeconomicsandMacroeconomics

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

23)Inpart,microeconomicsisconcernedwith

A)howabusinessfirmdecidesupontheamountitproducesandthepriceitsets.

B)changesintheeconomy'stotaloutputofgoodsandservicesoverlongperiodsoftime.

C)factorsthatexplainchangesintheunemploymentrateovertime.

D)theFederalReserve'spolicydecisions.

Answer:A

Topic:MicroeconomicsandMacroeconomics

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

24)Thestudyofthedecisionsofindividualunitsintheeconomyisknownas

A)macroeconomics.

B)microeconomics.

C)thestudyofincentives.

D)ceterisparibusstudy.

Answer:B

Topic:MicroeconomicsandMacroeconomics

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

25)Studyingthedeterminationofpricesinindividualmarketsisprimarilyaconcernof

A)positiveeconomics.

B)negativeeconomics.

C)macroeconomics.

D)microeconomics.

Answer:D

Topic:MicroeconomicsandMacroeconomics

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

26)Theanalysisofthebehaviorofindividualdecision-makingunitsisthedefinitionof

A)microeconomics.

B)positiveeconomics.

C)macroeconomics.

D)normativeeconomics.

Answer:A

Topic:MicroeconomicsandMacroeconomics

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

27)Whichofthefollowingisamicroeconomictopic?

A)HowatradeagreementbetweentheUnitedStatesandMexicoaffectsbothnations*

unemploymentrates.

B)Comparinginflationratesacrosscountries.

C)Howrentceilingsimpactthesupplyofapartments.

D)Howataxrateincreasewillimpacttotalproduction.

Answer:C

Topic:MicroeconomicsandMacroeconomics

Skill:Conceptual

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

28)WhichofthefollowingquestionsisNOTamicroeconomicquestion?

A)CantheFederalReservekeepincomegrowingbycuttinginterestrates?

B)Howwouldataxone-commerceaffecteBay?

C)WhatisBritney'sopportunitycostofhavinganotherbaby?

D)DoestheUnitedStateshaveacomparativeadvantageininformationtechnologyservices?

Answer:A

Topic:MicroeconomicsandMacroeconomics

Skill:Conceptual

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

29)Whichofthefollowingisanexampleofamicroeconomicdecision?

A)anindividualdecidinghowtoallocatethetimeheorshehasforworkandleisure

B)asmallshoefactorydecidinghowmuchleathertopurchaseforthenextquarter'sproduction

need

C)amultinationalcompanydecidingwheretorelocateitsworldheadquarter

D)Alloftheaboveanswersarecorrect.

Answer:D

Topic:MicroeconomicsandMacroeconomics

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

30)Whichofthefollowingisamicroeconomictopic?

A)ThereasonswhyKathybuyslessorangejuice.

B)Thereasonsforadeclineinaverageprices.

C)Thereasonswhytotalemploymentdecreases.

D)Theeffectofthegovernmentbudgetdeficitoninflation.

Answer:A

Topic:MicroeconomicsandMacroeconomics

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

31)Whichofthefollowingquestionsisatopicthatwouldbestudiedbymicroeconomics?

A)Whydidproductionandthenumberofjobsshrinkin2009?

B)Willthecurrentbudgetdeficitaffectthewell-beingofthenextgeneration?

C)Howwillalowerpriceofdigitalcamerasaffectthequantityofcamerassold?

D)WhatisthecurrentunemploymentrateintheUnitedStates?

Answer:C

Topic:MicroeconomicsandMacroeconomics

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

32)Anexampleofaquestionthatmightbeexploredinmicroeconomicsistodetermine

A)thenumberofworkersemployedbyIntel.

B)savingsbythehouseholdsector.

C)whytheU.S.economyhasgrownmorerapidlythantheJapaneseeconomy.

D)thetotalemploymentwithintheU.S.economy.

Answer:A

Topic:MicroeconomicsandMacroeconomics

Skill:Conceptual

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

33)Inpart,microeconomicsisconcernedwiththestudyof

A)unemploymentandeconomicgrowth.

B)theFederalReserve'spolicies.

C)theeffectgovernmentregulationhasonthepriceofaproduct.

D)nationaloutputofgoodsandservices.

Answer:C

Topic:MicroeconomicsandMacroeconomics

Skill:Conceptual

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

34)Thebranchofeconomicsthatdealswiththeanalysisofthewholeeconomyiscalled

A)macroeconomics.

B)marginalanalysis.

C)microeconomics.

D)metroanalysis.

Answer:A

Topic:MicroeconomicsandMacroeconomics

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

35)Macroeconomicsisconcernedwith

A)individualconsumers.

B)governmentdecisionmakingconcerningfarmpricesupports.

C)economy-widevariables.

D)theeffectsonFordMotorofastrikebytheUnitedAutoWorkers.

Answer:C

Topic:MicroeconomicsandMacroeconomics

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

36)Macroeconomicsdiffersfrommicroeconomicsinthat:

A)macroeconomicsstudiesthedecisionsofindividuals.

B)microeconomicslooksattheeconomyasawhole.

C)macroeconomicsstudiesthebehaviorofgovernmentwhilemicroeconomicslooksatprivate

corporations.

D)macroeconomicsfocusesonthenationaleconomyandtheglobaleconomy.

Answer:D

Topic:MicroeconomicsandMacroeconomics

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

37)Whichofthefollowingisamacroeconomicdecisionorconcept?

A)thepriceofoil

B)howmanytelevisionsetstoproduce

C)theunemploymentratefortheentireeconomy

D)theunemploymentrateforeachfirm

Answer:C

Topic:MicroeconomicsandMacroeconomics

Skill:Conceptual

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

38)Whichofthefollowingquestionsisamacroeconomicissue?

A)Howmanymorepoundsofcookieswillaconsumerpurchaseifthepriceofcookies

decreases?

B)WhateffectwouldacureforMadCowDiseasehaveonthemarketforbeef?

C)Whatisthefuturegrowthprospectforaneconomy?

D)Howmanyworkersshouldtheownerofabusinesshire?

Answer:C

Topic:MicroeconomicsandMacroeconomics

Skill:Conceptual

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

39)Inbroadtermsthedifferencebetweenmicroeconomicsandmacroeconomicsisthat

A)theyusedifferentsetsoftoolsandideas.

B)microeconomicsstudiesdecisionsofindividualpeopleandfirmsandmacroeconomicsstudies

theentirenationaleconomy.

C)macroeconomicsstudiestheeffectsofgovernmentregulationandtaxesonthepriceof

individualgoodsandserviceswhereasmicroeconomicsdoesnot.

D)microeconomicsstudiestheeffectsofgovernmenttaxesonthenationalunemploymentrate.

Answer:B

Topic:MicroeconomicsandMacroeconomics

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

40)Whichofthefollowingisamacroeconomicissue?

A)Howariseinthepriceofsugaraffectsthemarketforsodas.

B)Howfederalgovernmentbudgetdeficitsaffectinterestrates.

C)Whatdeterminestheamountafirmwillproduce.

D)Thecauseofadeclineinthepriceofpeanutbutter.

Answer:B

Topic:MicroeconomicsandMacroeconomics

Skill:Conceptual

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

41)Whichofthefollowingisamacroeconomicissue?

A)Thepurchasingdecisionsthatanindividualconsumermakes.

B)Theeffectofincreasingthemoneysupplyoninflation.

C)Thehiringdecisionsthatabusinessmakes.

D)Theeffectofanincreaseinthetaxoncigarettesoncigarettesales.

Answer:B

Topic:MicroeconomicsandMacroeconomics

Skill:Conceptual

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

42)Macroeconomictopicsinclude

A)total,nationwideemployment.

B)studyingwhatfactorsinfluencethepriceandquantityofautomobiles.

C)studyingthedeterminationofwagesandproductioncostsinthesoftwareindustry.

D)theimpactofgovernmentregulationofmarkets.

Answer:A

Topic:MicroeconomicsandMacroeconomics

Skill:Conceptual

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

43)Thefactthatwantscannotbefullysatisfiedwithavailableresourcesreflectsthedefinitionof

A)thewhattradeoff.

B)scarcity.

C)thebigtradeoff.

D)forwhomtoproduce.

Answer:B

Topic:StudyGuideQuestion,DefinitionofEconomics

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

44)Studyingtheeffectschoiceshaveontheindividualmarketswithintheeconomyispartof

A)scarcity.

B)microeconomics.

C)macroeconomics.

D)incentives.

Answer:B

Topic:StudyGuideQuestion,Macroeconomics

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

45)Economicscanbedefinedasthesocialsciencethatexplainsthe.

A)choicesmadebypoliticians

B)choiceswemakewhenwetradeinmarkets

C)choicesthatwemakeaswecopewithscarcity

D)choicesmadebyhouseholds

Answer:C

Topic:MyEconLabQuestions

Skill:Conceptual

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

46)Scarcityisasituationinwhich.

A)somepeoplearepoorandothersarerich

B)somethingisbeingwasted

C)weareunabletosatisfyallourwants

D)longlinesformatgasstations

Answer:C

Topic:MyEconLabQuestions

Skill:Conceptual

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

47)Microeconomicsisthestudyof.

A)thechoicesthatindividualsandbusinessesmake

B)allaspectsofscarcity

C)theglobaleconomy

D)thenationaleconomy

Answer:A

Topic:MyEconLabQuestions

Skill:Conceptual

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

2TwoBigEconomicQuestions

1)Whenaneconomyproducesmorehousesandfewertypewriters,itisansweringthe

partofoneofthetwobigeconomicquestions.

A)“what”

B)“how”

C)"where”

D)"forwhom"

Answer:A

Topic:WhatGoodsandServicesAreProduced?

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

2)Whenfirmsinaneconomystartproducingmorecomputersandfewertelevisions,theyare

answeringthepartofoneofthetwobigeconomicquestions.

A)"when”

B)[forwhom”

C)“what”

D)“where”

Answer:C

Topic:WhatGoodsandServicesAreProduced?

Skill:Conceptual

Questionhistory:Modifiedl()thedition

AACSB:ReflectiveThinking

3)IfTacoBelldecidestoproducemoretacosandfewerburritos,TacoBellisansweringthe

partofoneofthetwobigeconomicquestions.

A)"whaf,

B)Hwhy"

C)"when"

D)"scarcity"

Answer:C

Topic:WhatGoodsandServicesAreProduced?

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

4)Whenafarmerdecidestoraisehogsinsteadofcattle,thefarmerisansweringthe

partofoneofthetwobigeconomicquestions.

A)“what”

B)"forwhom"

C)Hhow"

D)"why"

Answer:A

Topic:WhatGoodsandServicesAreProduced?

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

5)Whenacountrydecidestoproducefewerbombersandmorepublichousingprojects,itis

answeringthepartofoneofthetwobigeconomicquestions.

A)“how”

B)“what”

C)"defense”

D)"forwhom”

Answer:B

Topic:WhatGoodsandServicesAreProduced?

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

6)Whenafirmdecidestoproducemoreelectriccarsandfewergasguzzlers,itismostdirectly

answeringthepartofoneofthetwobigeconomicquestions.

A)“how”

B)"scarcity”

C)“what”

D)"forwhom"

Answer:C

Topic:WhatGoodsandServicesAreProduced?

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

7)U.S.producersdecidetoproducemorecompactcarsandfewerSUVsasthepriceofgasoline

rises.Producersareansweringthepartofoneofthetwobigeconomicquestions.

A)nwhatn

B)nhow"

C)“when”

D)"howmany"

Answer:A

Topic:WhatGoodsandServicesAreProduced?

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

8)Whichofthefollowingstatementsiscorrect?

A)TheUnitedStatesproducesmoregoodsthanservices.

B)TheUnitedStatesproducesmoreservicesthangoods.

C)ThepercentageofpeopleproducinggoodsintheUnitedStateshassteadilyincreasedoverthe

last60years.

D)TheUnitedStatesproducesanequalamountofgoodsandservices.

Answer:B

Topic:TrendsinProduction

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

9)IntheU.S.economy,whichofthefollowingstatementsistrue?

A)Moregoodsareproducedthanservices.

B)Moreservicesareproducedthangoods.

C)Productionisdividedevenlybetweengoodsandservices.

D)Theeconomyistoocomplextodeterminetheproportionofproductionthatisdevotedto

producingservices.

Answer:B

Topic:TrendsinProduction

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

10)ThelargestpartofwhattheUnitedStatesproducestodayissuchas.

A)goods;foodandelectronicequipment

B)goods;educationandentertainment

C)services;tradeandhealthcare

D)services;textbooksandcomputers

Answer:C

Topic:TrendsinProduction

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

11)WhenChinabuildsadamusingfewmachinesandagreatdealoflabor,itisansweringthe

partofoneofthetwobigeconomicquestions.

A)nwhatn

B)“how”

C)“where”

D)nforwhom"

Answer:B

Topic:HowAreGoodsandServicesProduced?

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

12)Whenatextilecompanykeepstrackofitsinventoryusingacomputeranditscompetitor

usesapadofpaperandapencil,theyarebothansweringthepartofoneofthetwobig

economicquestions.

A)“what”

B)Hhow"

C)Hforwhom"

D)"where”

Answer:B

Topic:HowAreGoodsandServicesProduced?

Skill:Conceptual

Questionhistory:Modifiedl()thedition

AACSB:ReflectiveThinking

13)WhenaCaliforniafarmerdecidestoharvestlettuceusingmachinesinsteadofbymigrant

workers,thefarmerisansweringthepartofoneofthetwobigeconomicquestions.

A)nhown

B)"forwhom1'

C)"scarcity”

D)“what”

Answer:A

Topic:HowAreGoodsProduced?

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

14)Anartmuseumdecidestooffertoursbyhavingvisitorslistentocassettetapesratherthan

havetourguides.Themuseumisansweringthepartofoneofthetwobigeconomic

questions.

A)"scarcity"

B)Hwhatn

C)”why”

D)“how”

Answer:D

Topic:HowAreGoodsandServicesProduced?

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

15)Thefactthatpeoplewithhigherincomesgettoconsumemoregoodsandservicesaddresses

thepartofoneofthetwobigeconomicquestions.

A)"forwhom”

B)“when”

C)“where”

D)Hhown

Answer:A

Topic:ForWhomAreGoodsandServicesProduced?

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:EthicalReasoning

16)WhichofthefollowingisNOTafactorofproduction?

A)thewaterusedtocoolanuclearpowerplant.

B)theeffortoffarmersraisingcattle.

C)thewagespaidtoworkers.

D)themanagementskillofasmallbusinessowner.

Answer:C

Topic:FactorsofProduction

Skill:Conceptual

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

17)Whichofthefollowingareconsideredfactorsofproductionusedtoproducegoodsand

services?

I.Land

II.Labor

III.Capital

IV.Entrepreneurship

A)IandIIonly

B)IandIIIonly

C)I,IIandIIIonly

D)I,II,IIIandIV

Answer:D

Topic:FactorsofProduction

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

18)Whichofthefollowingiscorrect?Factorsofproductionare

A)land,labor,thepricesystem,andcapital.

B)theinputsusedtoproducegoodsandservices.

C)thefundamentalsourceofabundance.

D)onlylandandlabor.

Answer:B

Topic:FactorsofProduction

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

19)Factorsofproductioninclude

A)theeconomicsystem.

B)land,labor,capitalandentrepreneurship.

C)laborandcapital(notland,whichisfixed).

D)onlycapital,land,andlabor.

Answer:B

Topic:FactorsofProduction

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

20)FactorsofproductionincludeallofthefollowingEXCEPT.

A)machinesmadeinpastyears.

B)money

C)entrepreneurship

D)awheatfieldthatisnotirrigated

Answer:B

Topic:FactorsofProduction

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

21)Factorsofproductionaregroupedintofourcategories:

A)land,labor,capital,entrepreneurship

B)land,labor,capital,money

C)land,capital,money,entrepreneurship

D)labor,capital,money,entrepreneurship

Answer:A

Topic:FactorsofProduction

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

22)WhichofthefollowingisNOTafactorofproduction?

A)vansusedbyabakerycompanyfordeliveries

B)apersondevelopingaproductionscheduleforanewproduct

C)175sharesofMicrosoftstock

D)wildernessareasthathaveyettobedeveloped

Answer:C

Topic:FactorsofProduction

Skill:Conceptual

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

23)Keepinginmindeconomists1definitionoffactorsofproduction,whichofthefollowingis

NOTafactorofproduction?

A)money

B)low-skilledlabor

C)coal

D)anengineer

Answer:A

Topic:FactorsofProduction

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

24)WhichofthefollowingisNOTafactorofproduction?

A)mineralresources

B)auniversityprofessor

C)anapartmentbuilding

D)100sharesofMicrosoftstock

Answer:D

Topic:FactorsofProduction

Skill:Recognition

Questionhistory:Previousedition,Chapter1

AACSB:ReflectiveThinking

25)Theincomeearnedbythepeoplewhoselltheservicesofthefactorofproduction

iscalled.

A)capit