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Macroeconomics, 2e, GE (Acemoglu)
Chapter 1 The Principles and Practice of Economics
1.1 The Scope of Economics
1) Which of the following statements is true?
A) All economic agents are necessarily individuals.
B) A worker who shirks work is not an economic agent.
C) A government is an example of an economic agent.
D) A street gang is not an economic agent.
Answer: C
Difficulty: Easy
AACSB: Analytical Thinking
Topic: Economic Agents and Economic Resources
2) Which of the following best describes scarce resources?
A) Resources that most people cannot afford to buy
B) Resources that can only be distributed efficiently by the government
C) Resources for which the quantity demanded is the same for all economic agents
D) Resources for which the quantity that people want exceeds the quantity that is freely available
Answer: D
Difficulty: Easy
AACSB: Analytical Thinking
Topic: Economic Agents and Economic Resources
3) Which of the following is NOT a scarce resource?
A) Gold
B) Pollution
C) Petroleum
D) iPhones
Answer: B
Difficulty: Easy
AACSB: Application of Knowledge
Topic: Economic Agents and Economic Resources
4) In economics, scarcity refers to the situation of ________.
A) making the best use of limited information
B) having more wants than the amount of available resources
C) the government rationing available goods and services
D) sellers setting the prices of their products too high for people to be able to afford them
Answer: B
Difficulty: Medium
AACSB: Analytical Thinking
Topic: Economic Agents and Economic Resources
2
Copyright © 2019 Pearson Education, Ltd.
5) Which of the following statements is true?
A) Gold is not a scarce resource.
B) Both life‐saving drugs and ice cream are examples of scarce goods.
C) If a scarce resource is given away for free, everyone will be able to consume it.
D) Scarcity means that there is an imbalance between unlimited resources and limited wants.
Answer: B
Difficulty: Easy
AACSB: Analytical Thinking
Topic: Economic Agents and Economic Resources
6) What are scarce resources? Why are economic agents concerned with the allocation of these resources?
Answer: Scarce resources are resources for which the quantity that agents want exceeds the quantity that
is freely available. Economic agents need to satisfy their unlimited wants in a world of limited resources.
This makes it important for them to understand how these scarce resources are to be used and distributed
in order to optimize allocation.
Difficulty: Easy
AACSB: Analytical Thinking
Topic: Economic Agents and Economic Resources
7) Define economics. Who are economic agents?
Answer: Economics is the study of how agents choose to allocate scarce resources and how these choices
Copyright © 2019 Pearson Education, Ltd.
Macroeconomics, 2e, GE (Acemoglu)
Chapter 1 The Principles and Practice of Economics
1.1 The Scope of Economics
1) Which of the following statements is true?
A) All economic agents are necessarily individuals.
B) A worker who shirks work is not an economic agent.
C) A government is an example of an economic agent.
D) A street gang is not an economic agent.
Answer: C
Difficulty: Easy
AACSB: Analytical Thinking
Topic: Economic Agents and Economic Resources
2) Which of the following best describes scarce resources?
A) Resources that most people cannot afford to buy
B) Resources that can only be distributed efficiently by the government
C) Resources for which the quantity demanded is the same for all economic agents
D) Resources for which the quantity that people want exceeds the quantity that is freely available
Answer: D
Difficulty: Easy
AACSB: Analytical Thinking
Topic: Economic Agents and Economic Resources
3) Which of the following is NOT a scarce resource?
A) Gold
B) Pollution
C) Petroleum
D) iPhones
Answer: B
Difficulty: Easy
AACSB: Application of Knowledge
Topic: Economic Agents and Economic Resources
4) In economics, scarcity refers to the situation of ________.
A) making the best use of limited information
B) having more wants than the amount of available resources
C) the government rationing available goods and services
D) sellers setting the prices of their products too high for people to be able to afford them
Answer: B
Difficulty: Medium
AACSB: Analytical Thinking
Topic: Economic Agents and Economic Resources
2
Copyright © 2019 Pearson Education, Ltd.
5) Which of the following statements is true?
A) Gold is not a scarce resource.
B) Both life‐saving drugs and ice cream are examples of scarce goods.
C) If a scarce resource is given away for free, everyone will be able to consume it.
D) Scarcity means that there is an imbalance between unlimited resources and limited wants.
Answer: B
Difficulty: Easy
AACSB: Analytical Thinking
Topic: Economic Agents and Economic Resources
6) What are scarce resources? Why are economic agents concerned with the allocation of these resources?
Answer: Scarce resources are resources for which the quantity that agents want exceeds the quantity that
is freely available. Economic agents need to satisfy their unlimited wants in a world of limited resources.
This makes it important for them to understand how these scarce resources are to be used and distributed
in order to optimize allocation.
Difficulty: Easy
AACSB: Analytical Thinking
Topic: Economic Agents and Economic Resources
7) Define economics. Who are economic agents?
Answer: Economics is the study of how agents choose to allocate scarce resources and how these choices