C) the market system is an obstacle to the efficient use of plentiful resources to satisfy constrained wants.
D) resources are overly abundant as compared to wants; thus, an allocation problem exists.
17) Economics may best be defined as:
A) the interaction between macro and micro considerations.
B) the study of the behaviour of people and institutions in the production, distribution, and consumption of scarce goods.
C) the empirical testing of value judgments through the use of induction and deduction.
D) the use of policy to refute facts and hypotheses.
18) Purposeful behaviour suggests that:
A) everyone will make identical choices.
B) resource availability exceeds material wants.
C) individuals make decisions with some desired outcome in mind.
D) an individual's economic goals cannot involve tradeoffs.
19) Consumers spend their incomes to get the maximum benefit or satisfaction from the goods and services they purchase. This is a reflection of:
A) resource scarcity and the necessity of choice.
B) purposeful behaviour.
C) marginal costs which exceed marginal benefits.
D) the tradeoff problem which exists between competing goals.
20) The "economic perspective" refers to:
A) macroeconomic phenomena, but not microeconomic phenomena.
B) microeconomic phenomena, but not macroeconomic phenomena.
C) the making of rational decisions in a context of marginal costs and marginal benefits.
D) unlimited resources in a context of limited material wants.
21) The "economic perspective" entails:
A) rational behaviour by individuals and institutions.
B) a comparison of marginal benefits and marginal costs in decision making.
C) the altering of behaviour when marginal benefits and marginal costs change.
D) all of these are correct.
22) The economic perspective used in customer decision making at fast-food restaurants is reflected in:
A) customers selecting the shortest line.
B) customers leaving rather than waiting if all lines are long.
C) all customer lines tending to be of equal length.
D) all of these are correct.
23) How is the economic perspective reflected in lines for fast food?
A) Customers select the shortest line because they have perfect information.
B) Customers select the shortest line because they believe it will reduce their time cost of obtaining food.
C) Lines will typically be of unequal length because of the inefficiencies in counter service.