Answer: C
Topic: Economic questions, for whom
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
39) When the federal government decides to pay senators more than it pays soldiers, it answers the ________ question.
A) why
B) how
C) for whom
D) what
E) where
Answer: C
Topic: Economic questions, for whom
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
40) When a third string NFL quarterback earns more than a police officer, society answers the ________ question.
A) for whom
B) what
C) how
D) why
E) social interest vs. self-interest
Answer: A
Topic: Economic questions, for whom
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
41) When unskilled teens earn less than college graduates, society answers the ________ question.
A) how
B) what
C) for whom
D) why
E) social interest versus self-interest
Answer: C
Topic: Economic questions, for whom
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
42) Canada has nationalized health care, so that everyone, regardless of their ability to pay, has some access to health care. Based on this observation, Canada has decided that "everyone, regardless of their ability to pay" is the answer to what microeconomic question?
A) What type of health care will be produced and in what quantity?
B) How will health care be produced?
C) For whom will health care be produced?
D) Why will we offer health care?
E) Must we offer health care?
Answer: C
Topic: Economic questions, for whom
Skill: Level 3: Using models
Section: Checkpoint 1.1
Status: Old
AACSB: Analytic skills
43) Choices that are best for the individuals that make them are choices in pursuit of
A) the social interest.
B) efficiency.
C) incentives.
D) self-interest.
E) equity.
Answer: D
Topic: Self interest
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
44) Self interest
A) reflects choices that are best for society as a whole.
B) reflects choices that are best for the individual who makes them.
C) has nothing to do with determining what goods are produced.
D) occurs only when wants exceed available resources.
E) cannot be used to determine how goods are produced.
Answer: B
Topic: Self interest
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
45) Choices that are best for the society as a whole are choices in pursuit of
A) answering the "how" question.
B) the social interest.
C) self-interest.
D) incentives.
E) answering the "for whom" question.
Answer: B
Topic: Social interest
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
46) The characteristic from which all economic problems arise is
A) political decisions.
B) providing a minimal standard of living for every person.
C) how to make a profit.
D) hunger.
E) scarcity.
Answer: E
Topic: Scarcity
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
47) All economic questions and problems arise from
A) the fact that society has more than it needs.
B) turmoil in the stock market.
C) the unequal distribution of income.
D) a society's wants exceeding what its scarce resources can produce.
E) the difference between self-interest and social interest.
Answer: D
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
48) Scarcity results from the fact that
A) people's wants exceed the resources available to satisfy them.
B) not all goals are desirable.
C) we cannot answer the major economic questions.
D) choices made in self-interest are not always in the social interest.
E) the population keeps growing.
Answer: A
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking