Chapter 3Scarcity, Trade-Offs, and Economic Growth
1. Consumer sovereignty describes how individual consumers in market economies determine what is to
2. Command economies rely on central planning, where decisions abo
Chapter 1: Limits, Alternatives, and Choices
Chapter Learning Objectives
Learning Objective 1-1: The definition of
economics and the features of the economic
Learning Objective 1-2: The role of theory in
CHAPTER 5 1. The total market value of all final goods and services produced in an economy during a given time period is the definition of: A) Gross domestic product. B) Net domestic product. C) National income. D) Personal income. 2. GDP can be calculate
The relationship between two economic variables can be visualized with the aid of a twodimensional (graph, matrix) [a], which has (a horizontal, an inverse) [b] axis and a (vertical, direct) [c] axis. P 21
Customarily, the (dependent, independent) [a] var
Chapter 1The Role and Method of Economics
1. When our limited wants exceed our unlimited resources, we face scarcity.
2. Choices are costly because we must give up other opportunities that we value.
3. Living in a wo
1.1 Economics: The study of the allocation of our limited resources(input used to produce goods and service) to satisfy our unlimited wants. Scarcity: Exists when human wants exceed available resources. The economic problem: Scarcity forces us to choose a
If an increase in one variable is associated with a decrease in another variable, then we can conclude that the variables are: Correct Answer: inversely related.
The ratio of the vertical change to the horizontal change between two points of a straight li
Chapter 1: The Role and Method of Economics True or False 1. When our limited wants exceed our unlimited resources, we face scarcity. F 2. Choices are costly because we must give up other opportunities that we value. T 3. Living in a world of scarcity inv
C HAP TER 12 1. Which of the following government actions is an example of fiscal policy? A) Adjusting the money supply. B) Regulating utili ty prices. C) Increasing social security tax rates. D) Insti tuting wage and price controls. 2. A budget deficit i
1 out of 1 points 1. Given the hypothetical data in the table below, calculate the annual rates of growth in real GDP and real per capita GDP over the period given. The numbers for real GDP are in billions. Note: Enter only the numbers in the b
Chapter 10Consumer Choice Theory
1. Utility is the satisfaction or enjoyment derived from consumption.
2. Economists do not think it is possible to compare the relative satisfaction derived from consumption
0 out of 1 points 2 (Part 1). A farmer owns a plot of ground and sells the right to pump crude oil from his land to a crude oil producer. The crude oil producer agrees to pay the farmer $20 a barrel for every barrel pumped from the farmer's lan
CHAPTER 6 Use the following information to answer questions 1-2. Suppose the labor force of a country consists of 1 million people, of whom 800,000 are employed, and the full-employment level occurs at a 5 percent unemployment rate. 1. Based on the inform
1 out of 1 points Economics is the social science that studies how individuals, institutions, and society make choices under conditions of scarcity. Selected Answer: True Correct Answer: True
Feedback: Correct! See p. 4 of the text for more exp
Question 1 1. Following is an aggregate supply schedule.
1 out of 1 points
a. Plot this aggregate supply schedule on the graph.
b. The following table has three aggregate demand schedules.
(1) On the graph, plot the aggregate demand curve shown in columns
0 out of 1 points 1. On the blank following each phrase, write the number of the term below which matches it. 1. economics 2. macroeconomics 3. positive economics 4. normative economics 5. microeconomics 6. marginal analysis a. The attempt to e
1. As opposed to a payment system based on barter, a payments system based on money
Requires a double coincidence of wants.
Leads to less specialization.
Makes trades less costly.
None of the above is correct.
2. Any item that people c
Chapter 4Supply and Demand
1. Differences in the conditions under which the exchange between buyers and sellers occurs make it
difficult to precisely define a market.
2. All markets are effectively global in scope.
CHAPTER 4 1. The term market mechanism refers to: A) The use of market prices and sales to determine resource allocation. B) Resource allocation based on a production-possibilities curve. C) Resource allocation based on a consumer needs. D) Government law
1. Economics is primarily the study of: A) how scarcity can be eliminated B) how firms manipulate prices C) how government influence resource allocation decisions D) the problem of scarce resources relative to human wants
Macroeconomics mainly focuses u
The institutional arrangements and coordinating mechanisms used to respond to the economic problem are called (laissez-faire, an economic system) [a]. p29
In a command economy, property resources are primarily (publicly, privately) [a] owned. The coordina
The economic perspective recognizes that (resources, scarcity) [a] require(s) choice and that choice has an opportunity (benefit, cost) [b]. "There is no such thing as a free lunch" in economics because scarce resources have (unlimited, alternative) [c] u
Question 1 This question has one answer. What statement would best complete a short definition of economics? "Economics studies: Selected Answer: how individuals, institutions, and society make optimal choices under conditions of scarcity." Correct Answer
Chapter 5Bringing Supply and Demand Together
1. If the quantity demanded does not equal the quantity supplied, a shortage will always occur.
2. At the equilibrium price, the quantity demanded equals the quantity supplied.
- The Fed required that the commercial banks hold reserves against their CHECKABLE
- What is the nature of the relationship between the interest rate and the amount of investing?
- which of the following are lags facing fiscal policy?
If aggregate demand and aggregate supply both decrease: A) real GDP and the price level will both fall B) real GDP will fall and the price level will decrease C) the price level will fall but real GDP may either increase or decrease D) real GDP
Review Assessment: Chapter 17 Multiple Choice
User Latricia Lewis Submitted 3/4/09 7:29 PM Name Chapter 17 Multiple Choice Status Completed Score 5 out of 25 points Instructions
Question 1 Classical economists suggest that full employment is
0 out of 1 po
C HAP TER 8 1. Alternating periods of economic growth and contraction in real GDP define: A) Capitalism. B) The business cycle. C) Macro equilibrium. D) Say's Law. 2. The statement "Supply creates i ts own demand" is known as: A) Say's Law. B) Keynes' Law
1. The consumer price index is used to
Monitor changes in the level of wholesale prices in the economy.
Monitor changes in the cost of living over time.
Monitor changes in the level of real GDP over time.
Monitor changes in the stock ma
CHAPTER 9 1. Which of the following is a Keynesian conclusion about how adjustments occur in a recessionary gap? A) Government should reduce intervention. B) Government should intervene to increase aggregate supply. C) Government should intervene to incre