ch01 - Chapter1 MULTIPLECHOICE 1 a market b consumer c...

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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. 2 . The word economy comes from the Greek word for a. “environment.” b. “one who manages a household.” c. “one who participates in a market.” d. “conservation.” 3 . Households and economies have each of the following in common EXCEPT both a. must allocate scarce resources. b. face many decisions. c. must allocate the goods and services they produce. d. must have a central decisionmaker. 4 . Economics deals primarily with the concept of a. scarcity.
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b. poverty. c. change. d. power. 5 . Which of the following is NOT included in the decisions that every society must make? a. what goods will be produced b. who will produce goods c. what determines consumer preferences d. who will consume the goods 6 . Both households and societies face many decisions because a. resources are scarce. b. populations may increase or decrease over time. c. wages for households and therefore society fluctuate with business cycles. d. people, by nature, tend to disagree. 7 . A good is considered scarce in a society when a. more output of the good is possible. b. everyone in that society cannot have all they want of the good. c. the government restricts production of the good. d. only the richest people in the economy can buy all they want of the good. 8 . Scarcity exists when a. there is less than an infinite amount of a resource or good. b. society can meet the wants of every individual.
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c. there is less of a good or resource available than people wish to have. d. the government fails to produce goods. 9 . Which of the following would NOT be true in a world without scarcity? a. There would be no need for the science of economics. b. Everyone would have all the goods and services they wanted. c. There would have to be an infinite supply of every resource. d. There would be opportunity costs. 10 . Approximately what percentage of the world’s economies experience scarcity? a. 25% b. 50% c. 75% d. 100% 11 . 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. communism. c. externalities. d. market failure. 12 . 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 at full capacity. c. all members of society can have all they want of it.
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d. those who have enough income can buy all they want of the good.
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