Microeconomics Essay

9125 Words Oct 22nd, 2014 37 Pages
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Chapter 1—Introducing the Economic Way of Thinking

MULTIPLE CHOICE

1. When economists say scarcity, they mean: a. | there are only a limited number of consumers who would be interested in purchasing goods. | b. | the human desire for goods exceeds the available supply of time, goods and resources. | c. | most people in poorer countries do not have enough goods. | d. | goods are so expensive that only the rich can afford it. |

ANS: B PTS: 1 DIF: Easy REF: Full: 3 | Mic: 3 TOP: Scarcity TYP: RE

2. When economists say goods are scarce, they mean: a. | consumers are too poor to afford the goods and services available. | b. | consumers are
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The condition of scarcity: a. | cannot be eliminated. | b. | prevails in poor economies. | c. | prevails in rich economies. | d. | All of these. |

ANS: D PTS: 1 DIF: Easy REF: Full: 3 | Mic: 3 TOP: Scarcity TYP: RE

7. Scarcity: a. | exists because resources are unlimited while human wants are limited. | b. | means we are unable to have as much as we would like to have. | c. | will likely be eliminated as technology continues to expand. | d. | is not an issue addressed in economics. |

ANS: B PTS: 1 DIF: Easy REF: Full: 3 | Mic: 3 TOP: Scarcity TYP: RE

8. Which of the following would eliminate scarcity as an economic problem? a. | Moderation of people's competitive instincts. | b. | Discovery of sufficiently large new energy reserves. | c. | Resumption of steady productivity growth. | d. | None of these. |

ANS: D PTS: 1 DIF: Easy REF: Full: 3 | Mic: 3 TOP: Scarcity TYP: RE

9. The finite nature of the economy's resource base: a. | will be solved if only we would learn to conserve. | b. | is only a problem in developing countries. | c. | will be solved as technology advances. | d. | will always be with us. |

ANS: D PTS: 1 DIF: Medium REF: Full: 3 | Mic: 3 TOP: Scarcity TYP: SA

10. Human wants: a. | are unfilled only in the poorer countries of the world. | b. | can be

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