1、Chapter 1/Ten Principles of Economics F 29Chapter 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.ANSWER: d.economy.TYPE: M SECTION: 1 DIFFICULTY: 12.The word economy comes from the Gree
2、k word fora.“environment.”b.“one who manages a household.”c.“one who participates in a market.”d.“conservation.”ANSWER: b.“one who manages a household.”TYPE: M SECTION: 1 DIFFICULTY: 13.Households and economies have each of the following in common EXCEPT botha.must allocate scarce resources.b.face m
3、any decisions.c.must allocate the goods and services they produce.d.must have a central decisionmaker.ANSWER: d.must have a central decisionmaker.TYPE: M SECTION: 1 DIFFICULTY: 24.Economics deals primarily with the concept ofa.scarcity.b.poverty.c.change.d.power.ANSWER: a.scarcity.TYPE: M SECTION: 1
4、 DIFFICULTY: 15.Which of the following is NOT included in the decisions that every society must make?a.what goods will be producedb.who will produce goodsc.what determines consumer preferencesd.who will consume the goodsANSWER: c.what determines consumer preferencesTYPE: M SECTION: 1 DIFFICULTY: 26.
5、Both households and societies face many decisions becausea.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.ANSWER: a.resources are scarce.TYPE: M SECTION: 1 DIFFICU
6、LTY: 27.A good is considered scarce in a society whena.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.ANSWER: b.everyone
7、in that society cannot have all they want of the good.TYPE: M SECTION: 1 DIFFICULTY: 28.Scarcity exists whena.there is less than an infinite amount of a resource or good.b.society can meet the wants of every individual.c.there is less of a good or resource available than people wish to have.d.the go
8、vernment fails to produce goods.ANSWER: c.there is less of a good or resource available than people wish to have.TYPE: M SECTION: 1 DIFFICULTY: 29.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
9、goods and services they wanted.c.There would have to be an infinite supply of every resource.d.There would be opportunity costs.ANSWER: c.There would have to be an infinite supply of every resource.TYPE: M SECTION: 1 DIFFICULTY: 210.Approximately what percentage of the worlds economies experience sc
10、arcity?a.25%b.50%c.75%d.100%ANSWER: d.100%TYPE: M SECTION: 1 DIFFICULTY: 111.When a society cannot produce all the goods and services people wish to have it is said that the economy is munism.c.externalities.d.market failure.ANSWER: a.scarcity.TYPE: M SECTION: 1 DIFFICULTY: 112.For society, a good i
11、s not scarce ifa.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.d.those who have enough income can buy all they want of the good.ANSWER: c.all members of society can have all t
12、hey want of it.TYPE: M SECTION: 1 DIFFICULTY: 213.Which product would be considered scarce?a.Nike shoesb.Monet paintingsc.1-carat diamondsd.All of the above are correct.ANSWER: d.All of the above are correct.TYPE: M SECTION: 1 DIFFICULTY: 214.Which of the following goods best meets the definition of
13、 scarcity?a.airb.water in the oceanc.water in a cityd.wood in a forestANSWER: c.water in a cityTYPE: M SECTION: 1 DIFFICULTY: 215.Economics is defined as the study ofa.business.b.how society manages its scarce resources.c.central planning.d.government regulation.ANSWER: b.how society manages its sca
14、rce resources.TYPE: M SECTION: 1 DIFFICULTY: 116.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.ANSWER: a.how society manages its scarce resources.TYPE: M SECTION: 1 DIFFICULTY: 117.In
15、 most societies, resources are allocated bya.a single central planner.b.those who own the resources.c.those firms that use resources to provide goods and services.d.the combined actions of millions of households and firms.ANSWER: d.the combined actions of millions of households and firms.TYPE: M SEC
16、TION: 1 DIFFICULTY: 218.Economists study all of the following EXCEPTa.how people make decisions.b.how people interact with one another.c.the forces and trends that affect the economy as a whole.d.how societies change over time.ANSWER: d.how societies change over time.TYPE: M SECTION: 1 DIFFICULTY: 2
17、19.Which of the following is NOT a major area of study for economists?a.how people make decisionsb.how countries choose national leadersc.how people interact with each otherd.how forces and trends affect the overall economyANSWER: b.how countries choose national leadersTYPE: M SECTION: 1 DIFFICULTY:
18、 220.The adage, “There is no such thing as a free lunch,” is used to illustrate the concept ofa.tradeoffs.b.scarcity.c.productivity.d.efficiency.ANSWER: a.tradeoffs.TYPE: M SECTION: 1 DIFFICULTY: 221.The adage, “There is no such thing as a free lunch,” meansa.even people on welfare have to pay for f
19、ood.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.ANSWER: c.to get something we like, we usually have to give up another thing we like.TYPE: M SECTION: 1 DIFFICULTY: 222.Econom
20、ists use the phrase “There is no such thing as a free lunch,” to illustratea.how inflation increases prices.b.that to get one thing, we must give up something else.c.that nothing is free in a market economy.d.that if something looks too good to be true, it probably is.ANSWER: b.that to get one thing
21、, we must give up something else.TYPE: M SECTION: 1 DIFFICULTY: 223.Which best represents the concept represented by the adage, “There is no such thing as a free lunch”?a.Melissa can only attend the concert if she takes her sister with her.b.Greg is hungry and homeless.c.Brian must repair the tire o
22、n his bike before he can ride it to class.d.Kendra must decide between going to Colorado or Cancun for spring break.ANSWER: d.Kendra must decide between going to Colorado or Cancun for spring break.TYPE: M SECTION: 1 DIFFICULTY: 324.Guns and butter are used to represent the classic societal tradeoff
23、 between spending ona.durable and nondurable goods.b.imports and exports.c.national defense and consumer goods.d.law enforcement and agriculture.ANSWER: c.national defense and consumer goods.TYPE: M SECTION: 1 DIFFICULTY: 225.Henry decides to spend two hours playing golf rather than working at his j
24、ob which pays $8 per hour. Henrys tradeoff isa.the $16 he could have earned working for two hours.b.nothing, because he enjoys playing golf more than working.c.the increase in skill he obtains from playing golf for those two hours.d.nothing, because he spent $16 for green fees to play golf.ANSWER: a
25、.the $16 he could have earned working for two hours.TYPE: M SECTION: 1 DIFFICULTY: 226.When society requires that firms reduce pollution, there isa.a tradeoff because of reduced incomes to the firms owners, workers, and customers.b.no tradeoff, since everyone benefits from reduced pollution.c.no tra
26、deoff for society as a whole, since the cost of reducing pollution falls only on the firms affected by the requirements.d.a tradeoff only if some firms are forced to close.ANSWER: a.a tradeoff because of reduced incomes to the firms owners, workers, and customers.TYPE: M SECTION: 1 DIFFICULTY: 327.D
27、aniel decides to spend the last two hours of the night before his economics exam studying instead of sleeping. For Daniel, his tradeoff would bea.nothing, since no dollar value can be put on sleep.b.nothing, since studying would be more beneficial than sleep.c.the six hours of sleep he could have ha
28、d if he had gone to bed before midnight.d.the two hours of rest he would have gotten.ANSWER: d.the two hours of rest he would have gotten.TYPE: M SECTION: 1 DIFFICULTY: 228.A tradeoff exists between a clean environment and a higher level of income in thata.studies show that individuals with higher l
29、evels of income actually pollute less than low-income individuals.b.to pay for pollution clean-up, the government must increase taxes which lowers income.c.laws that reduce pollution raise costs of production and reduce incomes.d.by employing individuals to clean up pollution, employment and income
30、both rise.ANSWER: c.laws that reduce pollution raise costs of production and reduce incomes.TYPE: M SECTION: 1 DIFFICULTY: 329.Which of the following would NOT be a result of laws that require firms to reduce pollution?a.lower spending by governmentb.higher prices to consumersc.lower wages to worker
31、sd.smaller profit to firmsANSWER: a.lower spending by governmentTYPE: M SECTION: 1 DIFFICULTY: 230.Pollution regulations willa.increase profit to firms.b.impose a tradeoff on society.c.allow firms to raise workers wages.d.lower prices for consumers.ANSWER: b.impose a tradeoff on society.TYPE: M SECT
32、ION: 1 DIFFICULTY: 231.Which of the following best defines efficiency?a.absolute fairnessb.equal distributionc.minimum wasted.consumer sovereigntyANSWER: c.minimum wasteTYPE: M SECTION: 1 DIFFICULTY: 132.Which of the following is true?a.Efficiency refers to the size of the economic pie; equity refer
33、s to how the pie is divided.b.Fortunately, government policies are designed to promote 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.ANSWER: a.E
34、fficiency refers to the size of the economic pie; equity refers to how the pie is divided.TYPE: M SECTION: 1 DIFFICULTY: 333.Efficiency means thata.society is conserving resources in order to save them for the future.b.societys goods and services are distributed fairly among societys members.c.socie
35、ty has lessened its dependence on foreign energy sources.d.society is getting the most it can from its scarce resources.ANSWER: d.society is getting the most it can from its scarce resources.TYPE: M SECTION: 1 DIFFICULTY: 234.Economists use the word equity to describe a situation in whicha.each memb
36、er of society has the same income.b.society is getting the most it can from its scarce resources.c.those in society who have the least will receive the most.d.the benefits of societys resources are distributed fairly among societys members.ANSWER: d.the benefits of societys resources are distributed
37、 fairly among societys members.TYPE: M SECTION: 1 DIFFICULTY: 235.One definition of equity would bea.equality.b.efficiency.c.fairness.d.similarity.ANSWER: c.fairness.TYPE: M SECTION: 1 DIFFICULTY: 136.When government policies are being designed,a.there is usually a tradeoff between equity and effici
38、ency.b.equity and efficiency goals are usually independent of each other.c.equity can usually be achieved without an efficiency loss.d.increasing efficiency usually results in more equity.ANSWER: a.there is usually a tradeoff between equity and efficiency.TYPE: M SECTION: 1 DIFFICULTY: 237.When gove
39、rnment policies such as the welfare system try to help the most needy members of society, ita.increases equity and reduces efficiency.b.reduces charitable contributions in an economy.c.increases the productivity of the needy in the society.d.causes market failure to occur.ANSWER: a.increases equity
40、and reduces efficiency.TYPE: M SECTION: 2 DIFFICULTY: 238.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
41、and efficiency is increased.d.Equity is decreased and efficiency is decreased.ANSWER: b.Equity is increased and efficiency is decreased.TYPE: M SECTION: 2 DIFFICULTY: 239.When the government attempts to cut the economic pie into more equal slices,a.it is easier to cut the pie, and therefore the econ
42、omy can produce a larger pie.b.the government can more easily allocate the pie to those most in need.c.the pie gets smaller, and there will be less pie for everyone.d.the economy will spend too much time cutting and loses the ability to produce enough pie for everyone.ANSWER: c.the pie gets smaller,
43、 and there will be less pie for everyone.TYPE: M SECTION: 2 DIFFICULTY: 340.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.an actual reduction in equit
44、y.d.reduced efficiency in the economy.ANSWER: d.reduced efficiency in the economy.TYPE: M SECTION: 2 DIFFICULTY: 241.When the government redistributes income from the rich to the poor,a.efficiency is improved, but equity is not.b.both rich people and poor people benefit directly.c.people work less a
45、nd produce fewer goods and services.d.rich people consume fewer goods , but poor people consume more goods, resulting in no real change.ANSWER: c.people work less and produce fewer goods and services.TYPE: M SECTION: 1 DIFFICULTY: 242.In economics, the cost of something isa.the dollar amount of obta
46、ining it.b.always measured in units of time given up to get it.c.what you give up to get it.d.usually higher than people think it will be.ANSWER: c.what you give up to get it.TYPE: M SECTION: 1 DIFFICULTY: 143.What you give up to obtain an item is called youra.opportunity cost.b.explicit cost.c.true cost.d.direct cost.ANSWER: a.opportunity cost.TYPE: M SECTION: 1 DIFFICULTY: 144.The opportunity cost of going to coll
