ANSWER:
a
22. What is the primary concern of economics?
a.
studying limited desires in the face of unlimited resources
b.
studying problems such as poverty and unemployment
c.
studying production and distribution of goods in a world of unlimited resources
d.
studying production and distribution of goods in a world of limited resources
ANSWER:
d
23. Which statement about economics is the most accurate?
a.
It explores how choices are made between conflicting wants and desires in a world of scarcity.
b.
Its main focus is the analysis of normative statements.
c.
It typically uses controlled experiments to learn about consumer and firm behaviour.
d.
It uses models that cannot be tested empirically due to the complex nature of the economy.
ANSWER:
a
24. What is the solution to solving the fundamental economic problem?
a.
to allocate limited resources among competing uses
b.
to guarantee all humans have a minimum level of food, shelter, and clean water
c.
to eliminate poverty in the developing world
d.
to increase the amount of leisure time available to people
ANSWER:
a
25. Which of the following is considered to be our single most precious resource?
a.
money
b.
oil
c.
time
d.
precious metals
ANSWER:
c
26. Which of the following statements about the scope of economics is the most accurate?
a.
Economics applies only to business situations.
b.
Economics deals with solely the interaction of individuals and businesses in the marketplace.
c.
Economics is all theory, and much of it does not apply to everyday life.
d.
Economics applies, in part, to almost everything since so many facets of our lives are about decision making with limited resources.
ANSWER:
d
27. Which statement about economics is the most accurate?
a.
It is concerned with predicting market conditions in the future, not with the current economic state of affairs.
b.
It is a physical science, much like physics and geology.
c.
It is composed of two schools of thought known as positive and normative economics.
d.
It is a science concerned with reaching generalizations about human behaviour, like sociology or psychology.
ANSWER:
d
28. Which statement about economics is the most accurate?
a.
It concerns itself only with monetary decisions.
b.
It says very little about "everyday life."
c.
It is a narrowly focused discipline.
d.
It is a broad-ranging, problem-solving discipline.
ANSWER:
d
29. Which of the following would be studied in a microeconomics course?
a.
how the economy measures unemployment
b.
the amount of national debt
c.
the consumption decisions made by individuals
d.
the effect of rising prices on the economy
ANSWER:
c
30. Who makes economic decisions?
a.
They are made only by government leaders.
b.
They are made in both the private and public sectors.
c.
They are made only where monetary exchanges take place.
d.
They are made only at the management level of corporations.
ANSWER:
b
31. What is the basic difference between macroeconomics and microeconomics?
a.
Microeconomics explores the causes of inflation, while macroeconomics focuses on the causes of unemployment.