Understanding Economics A Contemporary Perspective 8th Edition by Mark Lovewell Test bank
B. limited resources to satisfy unlimited wants
C. unlimited resources to satisfy limited wants
D. limited resources to satisfy limited wants
E. free resources to satisfy expensive wants
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants; but limited resources-that underlies the definition of economics
Lovewell - Chapter 01 #1
Topic: 01-02 The Economic Problem
Type: Definition
2.Economists assume that people customarily behave rationally, meaning that people:
A. virtually always weigh the personal benefits and costs of every available action and choose an action on the basis of their individual wants
B. act in a rational way when buying and selling products, but not in other settings
C. act rationally when they buy products, but not when they sell them
D. act rationally when they sell products, but not when they buy them
E. are unable to act in an irrational way
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants; but limited resources-that underlies the definition of economics
Lovewell - Chapter 01 #2
Topic: 01-02 The Economic Problem
Type: Definition
3.An economist who says that consumer wants are inexhaustible means that:
A. economic resources are valuable only because they can be used to produce consumer goods
B. economic resources—natural, capital, and human resources—are scarce
C. consumers wants are virtually unlimited and, therefore, incapable of being fully satisfied
D. the nature of consumer wants is highly unpredictable
E. the nature of consumer demand varies from time to time and from country to country
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants; but limited resources-that underlies the definition of economics
Lovewell - Chapter 01 #3
Topic: 01-02 The Economic Problem
Type: Definition
4.The fundamental problem of economics is:
A. to establish equity between personal and business taxation
B. to establish a democratic political framework for the provision of social goods and services
C. to establish prices that accurately reflect the relative scarcities of products and resources
D. to achieve a fair distribution of money income to reduce poverty
E. the scarcity of productive resources relative to consumer wants
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants; but limited resources-that underlies the definition of economics
Lovewell - Chapter 01 #4
Topic: 01-02 The Economic Problem
Type: Definition
5.The economic problem stems from the fact that:
A. the production possibilities curve bows out to the right
B. resources are scarce relative to people's demand for goods and services
C. people act to maximize their own welfare
D. historically the production possibilities curve has been shifting down toward the origin
E. the production possibilities curve bows in to the left
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants; but limited resources-that underlies the definition of economics
Lovewell - Chapter 01 #5
Topic: 01-02 The Economic Problem
Type: Definition
6.The study of economics is carried out because:
A. government interferes with the efficient distribution of scarce resources
B. resources are scarce in relation to consumer wants
C. the market system is an obstacle to the efficient use of plentiful resources to satisfy limited wants
D. resources are overly abundant as compared with wants and, therefore, a distribution problem exists
E. government aids in the efficient distribution of scarce resources
Accessibility: Keyboard Navigation