2982 - Chapter 1 Ten Principles of Economics Multiple...

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Chapter 1 Ten Principles of Economics Multiple Choice 1. The word that comes from the Greek word for "one who manages a household" is a. market. b. consumer. c. producer. d. economy. ANS: D DIF: 1 REF: 1-0 TOP: Economy MSC: Definitional 2. The word “economy” comes from the Greek word oikonomos , which means a. “environment.” b. “production.” c. “one who manages a household.” d. “one who makes decisions.” ANS: C DIF: 1 REF: 1-0 TOP: Economy MSC: Definitional 3. Resources are a. scarce for households but plentiful for economies. b. plentiful for households but scarce for economies. c. scarce for households and scarce for economies. d. plentiful for households and plentiful for economies. ANS: C DIF: 1 REF: 1-0 TOP: Resources, Scarcity MSC: Interpretive 4. Economics deals primarily with the concept of a. scarcity. b. poverty. c. change. d. power. ANS: A DIF: 1 REF: 1-0 TOP: Scarcity MSC: Definitional 5. Which of the following questions is not answered by the decisions that every society must make? a. What determines consumer preferences? b. What goods will be produced? c. Who will produce the goods? d. Who will consume the goods? ANS: A DIF: 2 REF: 1-0 TOP: Economies MSC: Interpretive 6. The overriding reason as to why households and societies face many decisions is that a. resources are scarce. b. goods and services are not scarce. c. incomes fluctuate with business cycles. d. people, by nature, tend to disagree. ANS: A DIF: 2 REF: 1-0 TOP: Scarcity MSC: Interpretive 1
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2 Chapter 1/Ten Principles of Economics 7. The phenomenon of scarcity stems from the fact that a. most economies’ production methods are not very good. b. in most economies, wealthy people consume disproportionate quantities of goods and services. c. governments restricts production of too many goods and services. d. resources are limited. ANS: D DIF: 2 REF: 1-0 TOP: Scarcity MSC: Interpretive 8. Approximately what percentage of the world's economies experience scarcity? a. 25% b. 50% c. 75% d. 100% ANS: D DIF: 1 REF: 1-0 TOP: Scarcity MSC: Interpretive 9. When a society cannot produce all the goods and services people wish to have, it is said that the economy is experiencing a. scarcity. b. shortages. c. inefficiencies. d. inequities. ANS: A DIF: 2 REF: 1-0 TOP: Scarcity MSC: Interpretive 10. For society, a good is not scarce if a. at least one individual in society can obtain all he or she wants of the good. b. firms are producing the good at full capacity. c. all members of society can have all they want of the good. d. those who have enough income can buy all they want of the good. ANS: C DIF: 1 REF: 1-0 TOP: Scarcity MSC: Interpretive 11. Which of the following products would be considered scarce? a. golf clubs
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2982 - Chapter 1 Ten Principles of Economics Multiple...

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