Understanding Economics A Contemporary Perspective 8th Edition by Mark Lovewell Test bank

Lovewell - Chapter 01 #37
Topic: 01-04 Economic Models
Type: Definition
 
 
38.Utility refers to the: 
 


A. extent to which a product can be used as a capital resource
 
B. opportunity cost of a product
 
C. relative scarcity of a product
 
D. usefulness of a product
 
E. satisfaction that a consumer derives from a good or service
 
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-02 Explain how economists specify economic choice; including the production choices an entire economy faces; as demonstrated by the production possibilities model
Lovewell - Chapter 01 #38
Topic: 01-06 Utility Maximization
Type: Definition
 
 
39.To maximize utility, a consumer who derives greater satisfaction from writing music than from studying drama will choose to: 
 


A. study music
 
B. study drama
 
C. write plays
 
D. write music
 
E. both write music and study drama
 
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Explain how economists specify economic choice; including the production choices an entire economy faces; as demonstrated by the production possibilities model
Lovewell - Chapter 01 #39
Topic: 01-06 Utility Maximization
Type: Application
 
 
40.Which of the following expressions best states the idea of opportunity cost? 
 


A. "A penny saved is a penny earned."
 
B. "He who hesitates is lost."
 
C. "There is no such thing as a free lunch."
 
D. "All that glitters is not gold."
 
E. "Watch the pennies, and the pounds will look after themselves."
 
Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-02 Explain how economists specify economic choice; including the production choices an entire economy faces; as demonstrated by the production possibilities model
Lovewell - Chapter 01 #40
Topic: 01-07 Opportunity Cost
Type: Application
 
 
41.The notion of opportunity cost: 
 


A. applies to consumers, but not to businesses
 
B. applies to businesses, but not to consumers
 
C. is relevant to economies of all ideological persuasions
 
D. would disappear if we were able to eliminate poverty
 
E. does not apply to governments
 
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Explain how economists specify economic choice; including the production choices an entire economy faces; as demonstrated by the production possibilities model
Lovewell - Chapter 01 #41
Topic: 01-07 Opportunity Cost
Type: Application
 
 
42.The concept of opportunity cost: 
 


A. is irrelevant in command economies because of central planning
 
B. suggests that resources are often unlimited in quantity
 
C. is irrelevant if the production possibilities curve is shifting to the right
 
D. suggests that inexhaustible wants can be fulfilled
 
E. suggests that the use of resources in any particular line of production means that alternative outputs must be forgone
 
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Explain how economists specify economic choice; including the production choices an entire economy faces; as demonstrated by the production possibilities model
Lovewell - Chapter 01 #42
Topic: 01-07 Opportunity Cost
Type: Definition
 
 
43.Which of the following is not an illustration of the notion of opportunity cost? 
 


A. A growing economy can produce more ice cream and more ice cream cones at the same time.
 
B. If I buy a pizza, I will not be able to afford a movie.
 
C. Resources devoted to the production of computers are not available for the production of computer software.
 
D. The land on which a Saskatchewan farmer plants wheat is not available for barley production.
 
E. The more time it takes to commute to work, the less time is available for other activities.
 
Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-02 Explain how economists specify economic choice; including the production choices an entire economy faces; as demonstrated by the production possibilities model