1、.Chapter 1Ten Principles of EconomicsMultiple Choice1. The word that comes from the Greek word for “one who manages a household“ isa. market.b. consumer.c. producer.d. economy.ANS: D DIF: 1 REF: 1-0TOP: Economy MSC: Definitional2. The word “economy” comes from the Greek word oikonomos, which means a
2、. “environment.”b. “production.”c. “one who manages a household.”d. “one who makes decisions.”ANS: C DIF: 1 REF: 1-0TOP: Economy MSC: Definitional3. Resources are a. scarce for households but plentiful for economies.b. plentiful for households but scarce for economies.c. scarce for households and sc
3、arce for economies.d. plentiful for households and plentiful for economies.ANS: C DIF: 1 REF: 1-0TOP: Resources, Scarcity MSC: Interpretive4. Economics deals primarily with the concept ofa. scarcity.b. poverty.c. change.d. power.ANS: A DIF: 1 REF: 1-0TOP: Scarcity MSC: Definitional5. Which of the fo
4、llowing 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: 1-0TOP: Economies MSC: Interpretive6. The overriding reason as to why
5、households and societies face many decisions is thata. 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: 1-0TOP: Scarcity MSC: Interpretive7. The phenomenon of scarcity stems from the fact tha
6、t 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: 1-0TOP: Scarcity MSC: Interpretive2 C
7、hapter 1/Ten Principles of Economics8. Approximately what percentage of the worlds economies experience scarcity?a. 25%b. 50%c. 75%d. 100%ANS: D DIF: 1 REF: 1-0TOP: Scarcity MSC: Interpretive9. When a society cannot produce all the goods and services people wish to have, it is said that the economy
8、is experiencinga. scarcity.b. shortages.c. inefficiencies.d. inequities.ANS: A DIF: 2 REF: 1-0TOP: Scarcity MSC: Interpretive10. For society, a good is not scarce ifa. 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. al
9、l 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: 1-0TOP: Scarcity MSC: Interpretive11. Which of the following products would be considered scarce?a. golf clubsb. Picasso paintingsc. applesd. All of the above
10、are correct.ANS: D DIF: 2 REF: 1-0TOP: Scarcity MSC: Interpretive12. Economics is the study ofa. production methods.b. how society manages its scarce resources.c. how households decide who performs which tasks.d. the interaction of business and government.ANS: B DIF: 1 REF: 1-0TOP: Economies, Scarci
11、ty MSC: Definitional13. Economics is the study ofa. how society manages its scarce resources.b. the governments role in society.c. how a market system functions.d. how to increase production.ANS: A DIF: 1 REF: 1-0TOP: Economies, Scarcity MSC: Definitional14. In most societies, resources are allocate
12、d bya. a single central planner.b. a small number of central planners.c. those firms that use resources to provide goods and services.d. the combined actions of millions of households and firms.ANS: D DIF: 1 REF: 1-0TOP: Resource allocation MSC: InterpretiveChapter 1/Ten Principles of Economics 315.
13、 The adage, “There is no such thing as a free lunch,“ is used to illustrate the principle thata. goods are scarce.b. people face tradeoffs.c. income must be earned.d. households face many decisions.ANS: B DIF: 2 REF: 1-1TOP: Tradeoffs MSC: Interpretive16. The adage, “There is no such thing as a free
14、 lunch,“ meansa. even people on welfare have to pay for food.b. the cost of living is always increasing.c. to get something we like, we usually have to give up another thing we like.d. all costs are included in the price of a product.ANS: C DIF: 1 REF: 1-1TOP: Tradeoffs MSC: Definitional17. Economis
15、ts use the phrase “There is no such thing as a free lunch,“ to illustrate the principle thata. inflation almost always results in higher prices over time.b. nothing is free in a market economy.c. making decisions requires trading off one goal against another.d. if something looks too good to be true
16、, it probably is not worth pursuing.ANS: C DIF: 2 REF: 1-1TOP: Tradeoffs MSC: Interpretive18. Which of the following statements best represents the principle represented by the adage, “There is no such thing as a free lunch“?a. Melissa can attend the concert only if she takes her sister with her.b.
17、Greg is hungry and homeless.c. Brian must repair the tire on his bike before he can ride it to class.d. Kendra must decide between going to Colorado or Cancun for spring break.ANS: D DIF: 3 REF: 1-1TOP: Tradeoffs MSC: Applicative19. The principle that “people face tradeoffs“ applies toa. individuals
18、.b. families.c. societies.d. All of the above are correct.ANS: D DIF: 1 REF: 1-1TOP: Tradeoffs MSC: Applicative20. A typical society strives to get the most it can from its scarce resources. At the same time, the society attempts to distribute the benefits of those resources to the members of the so
19、ciety in a fair manner. In other words, the society faces a tradeoff betweena. guns and butter.b. efficiency and equity.c. inflation and unemployment.d. work and leisure.ANS: B DIF: 1 REF: 1-1TOP: Efficiency, Equity MSC: Interpretive21. Guns and butter are used to represent the classic societal trad
20、eoff between spending ona. durable and nondurable goods.b. imports and exports.c. national defense and consumer goods.d. law enforcement and agriculture.ANS: C DIF: 1 REF: 1-1TOP: Tradeoffs MSC: Interpretive4 Chapter 1/Ten Principles of Economics22. When society requires that firms reduce pollution,
21、 there isa. a tradeoff because of reduced incomes to the firms owners and workers.b. a tradeoff only if some firms are forced to close.c. no tradeoff, since the cost of reducing pollution falls only on the firms affected by the requirements.d. no tradeoff, since everyone benefits from reduced pollut
22、ion.ANS: A DIF: 3 REF: 1-1TOP: Tradeoffs MSC: Applicative23. A tradeoff exists between a clean environment and a higher level of income in thata. studies show that individuals with higher levels of income actually pollute less than low-income individuals.b. efforts to reduce pollution typically are
23、not completely successful.c. laws that reduce pollution raise costs of production and reduce incomes.d. by employing individuals to clean up pollution, employment and income both rise.ANS: C DIF: 2 REF: 1-1TOP: Tradeoffs MSC: Applicative24. Which of the following phrases best captures the notion of
24、efficiency?a. absolute fairnessb. equal distributionc. minimum wasted. equitable outcomeANS: C DIF: 1 REF: 1-1TOP: Efficiency MSC: Interpretive25. Which of the following is true?a. Efficiency refers to the size of the economic pie; equity refers to how the pie is divided.b. Government policies usual
25、ly improve upon both equity and efficiency.c. As long as the economic pie continually gets larger, no one will have to go hungry.d. Efficiency and equity can both be achieved if the economic pie is cut into equal pieces.ANS: A DIF: 2 REF: 1-1TOP: Efficiency, Equity MSC: Interpretive26. Efficiency me
26、ans thata. society is conserving resources in order to save them for the future.b. societys goods and services are distributed equally among societys members.c. societys goods and services are distributed fairly, though not necessarily equally, among societys members.d. society is getting the maximu
27、m benefits from its scarce resources.ANS: D DIF: 1 REF: 1-1TOP: Efficiency MSC: Definitional27. Economists use the word equity to describe a situation in whicha. each member of society has the same income.b. each member of society has access to abundant quantities of goods and services, regardless o
28、f his or her income.c. society is getting the maximum benefits from its scarce resources.d. the benefits of societys resources are distributed fairly among societys members.ANS: D DIF: 2 REF: 1-1TOP: Equity MSC: Interpretive28. Senator Smith wants to increase taxes on people with high incomes and us
29、e the money to help the poor. Senator Jones argues that such a tax will discourage successful people from working and will therefore make society worse off. An economist would say thata. we should agree with Senator Smith.b. we should agree with Senator Jones.c. a good decision requires that we reco
30、gnize both viewpoints.d. there are no tradeoffs between equity and efficiency.ANS: C DIF: 2 REF: 1-1TOP: Efficiency, Equity MSC: ApplicativeChapter 1/Ten Principles of Economics 529. Which of the following words and phrases best captures the notion of equity?a. minimum wasteb. maximum benefitc. same
31、nessd. fairnessANS: D DIF: 1 REF: 1-1TOP: Equity MSC: Definitional30. When government policies are enacted,a. equity can usually be enhanced without an efficiency loss, but efficiency can never be enhanced without an equity loss.b. efficiency can usually be enhanced without an equity loss, but equit
32、y can never be enhanced without an efficiency loss.c. it is always the case that either efficiency and fairness are both enhanced, or efficiency and equity are both diminished.d. None of the above are correct.ANS: D DIF: 2 REF: 1-1TOP: Government, Efficiency, Equity MSC: Applicative31. A likely effe
33、ct of government policies that redistribute income and wealth from the wealthy to the poor is that those policiesa. enhance equity.b. reduce efficiency.c. reduce the reward for working hard.d. All of the above are correct.ANS: D DIF: 2 REF: 1-1TOP: Government, Efficiency, Equity MSC: Interpretive32.
34、 When the government implements programs such as progressive income tax rates, which of the following is likely to occur?a. Equity is increased and efficiency is increased.b. Equity is increased and efficiency is decreased.c. Equity is decreased and efficiency is increased.d. Equity is decreased and
35、 efficiency is decreased.ANS: B DIF: 2 REF: 1-1TOP: Government, Efficiency, Equity MSC: Interpretive33. As a result of a successful attempt by government to cut the economic pie into more equal slices,a. it is easier to cut the pie, and therefore the economy can produce a larger pie.b. the governmen
36、t can more easily allocate the pie to those most in need.c. the pie gets smaller, and there will be less pie overall.d. government will spend too much time cutting and it causes the economy to lose the ability to produce enough pie for everyone.ANS: C DIF: 3 REF: 1-1TOP: Government, Efficiency, Equi
37、ty MSC: Analytical34. When the government attempts to improve equity in an economy the result is oftena. an increase in overall output in the economy.b. additional government revenue since overall income will increase.c. a reduction in equity.d. a reduction in efficiency.ANS: D DIF: 2 REF: 1-1TOP: G
38、overnment, Efficiency, Equity MSC: Interpretive35. When the government redistributes income from the wealthy to the poor,a. efficiency is improved, but equity is not.b. both wealthy people and poor people benefit directly.c. people work less and produce fewer goods and services.d. wealthy people con
39、sume fewer goods, but poor people consume more goods, resulting in no real change.ANS: C DIF: 2 REF: 1-1TOP: Government, Efficiency, Equity MSC: Interpretive6 Chapter 1/Ten Principles of Economics36. In economics, the cost of something isa. the dollar amount of obtaining it.b. always measured in uni
40、ts of time given up to get it.c. what you give up to get it.d. often impossible to quantify, even in principle.ANS: C DIF: 1 REF: 1-1TOP: Opportunity cost MSC: Definitional37. What you give up to obtain an item is called youra. opportunity cost.b. explicit cost.c. true cost.d. direct cost.ANS: A DIF
41、: 1 REF: 1-1TOP: Opportunity cost MSC: Definitional38. The opportunity cost of going to college isa. the total spent on food, clothing, books, transportation, tuition, lodging, and other expenses.b. the value of the best opportunity a student gives up to attend college.c. zero for students who are f
42、ortunate enough to have all of their college expenses paid by someone else.d. zero, since a college education will allow a student to earn a larger income after graduation.ANS: B DIF: 2 REF: 1-1TOP: Opportunity cost MSC: Interpretive39. Maurice receives $100 as a birthday gift. In deciding how to sp
43、end the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision isa. the value to Maurice of the option he would have chosen had Option B not been available.b. the va
44、lue to Maurice of Options A, C and D combined.c. $100.d. $300.ANS: A DIF: 2 REF: 1-1TOP: Opportunity cost MSC: Applicative40. A furniture maker currently produces 100 tables per week and sells them for a profit. She is considering expanding her operation in order to make more tables. Should she expa
45、nd?a. Yes, because making tables is profitable.b. No, because she may not be able to sell the additional tables.c. It depends on the marginal cost of producing more tables and the marginal revenue she will earn from selling more tables.d. It depends on the average cost of producing more tables and t
46、he average revenue she will earn from selling more tables.ANS: C DIF: 2 REF: 1-1TOP: Marginal changes MSC: Applicative41. For most students, the largest single cost of a college education isa. the wages given up to attend school.b. tuition, fees, and books.c. room and board.d. transportation, parkin
47、g, and entertainment.ANS: A DIF: 2 REF: 1-1TOP: Opportunity cost MSC: Interpretive42. For a college student who wishes to calculate the true costs of going to college, the costs of room and board a. should be counted in full, regardless of the costs of eating and sleeping elsewhere.b. should be coun
48、ted only to the extent that they are more expensive at college than elsewhere.c. usually exceed the opportunity cost of going to college.d. plus the cost of tuition, equals the opportunity cost of going to college.ANS: B DIF: 2 REF: 1-1TOP: Opportunity cost MSC: ApplicativeChapter 1/Ten Principles o
49、f Economics 743. For which of the following individuals would the opportunity cost of going to college be highest?a. a promising young mathematician who will command a high salary once she earns her college degreeb. a student with average grades who has never held a jobc. a famous, highly-paid actor who wants to take time away from show business to finish college and earn a degreed. a student who is the best player on his college basketball team, but who lacks the skills necessary to play professional basketballANS: C DIF: 2 REF: 1-1TOP: Opportunity cost MSC: Applicative4
