49) To economists, scarcity means that
A) limited wants cannot be satisfied by the unlimited resources.
B) a person looking for work is not able to find work.
C) the number of people without jobs rises when economic times are bad.
D) there can never be answers to the what, how or for whom questions.
E) unlimited wants cannot be satisfied by the limited resources.
Answer: E
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
50) Which of the following statements is true regarding scarcity?
A) Scarcity affects poorer countries only.
B) An economy experiences scarcity only when the incomes of its citizens decline.
C) Poor people experience scarcity more often than do rich people.
D) All citizens in a wealthy economy experience scarcity.
E) Scarcity could be overcome if people would make all choices in the social interest.
Answer: D
Topic: Scarcity
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
51) People must make choices because
A) most people enjoy shopping.
B) of scarcity.
C) there are many goods available.
D) the question "What goods and services are produced?" is not adequately answered.
E) making choices is in the social interest.
Answer: B
Topic: Scarcity
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
52) Which of the following is a microeconomic issue?
A) Why has unemployment risen nationwide?
B) Why has economic growth been rapid in China?
C) What is the impact on the quantity of Pepsi purchased if consumers' tastes change in favor of non-carbonated drinks?
D) Why is the average income lower in Africa than in Latin America?
E) Why did overall production increase within the United States last year?
Answer: C
Topic: Microeconomics
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
53) Microeconomics includes the study of
A) how countries decide to fund their budget deficits.
B) the choices that individuals and businesses make.
C) how a nation promotes economic growth.
D) the effect on the national economy of the choices that individuals make.
E) the overall amount of production within the economy.
Answer: B
Topic: Microeconomics
Skill: Level 1: Definition
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
54) The question "Should we produce LCD televisions or computer monitors?" is an example of a ________ question.
A) what
B) how
C) for whom
D) where
E) why
Answer: A
Topic: Economic questions, what
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
55) When Ferrari decides to produce 1,200 360 Modenas each year, Ferrari is answering the ________ question.
A) for whom
B) how
C) what
D) why
E) scarcity
Answer: C
Topic: Economic questions, what
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
56) Whether a company produces fishing rods mostly by hand or using high-tech machinery is a question of
A) "For whom will goods be produced?"
B) "When will the goods be produced?"
C) "Where will the goods be produced?"
D) "How will the goods be produced?"
E) "Why will the goods be produced?"
Answer: D
Topic: Economic questions, how
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
57) When a landscaping company decides to use drafting software and computers instead of hiring designers to draw design plans by hand, it is answering the ________ question.
A) how
B) what
C) for whom
D) opportunity cost
E) why
Answer: A
Topic: Economic questions, how
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Status: Old
AACSB: Reflective thinking
58) The question "Should we produce houses using bricks or wood?" is an example of a ________ question.
A) what
B) how
C) for whom
D) where
E) why
Answer: B
Topic: Economic questions, how
Skill: Level 2: Using definitions