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1、1Chapter 1 Ten Principles of EconomicsTRUE/FALSE1. Scarcity means that there is less of a good or resource available than people wish to have.ANS: T DIF: 1 REF: 1-0NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity
2、costTOP: Scarcity MSC: Definitional2. Economics is the study of how evenly goods and services are distributed within society.ANS: F DIF: 1 REF: 1-0NAT: Analytic LOC: The Study of economics, and definitions in economicsTO
3、P: Economics MSC: Definitional3. Economics is the study of how society allocates its unlimited resources.ANS: F DIF: 1 REF: 1-0NAT: Analytic LOC: The Study of economics, and definitions in economicsTOP: Economics MSC: De
4、finitional4. With careful planning, we can usually get something that we like without having to give up something else that we like.ANS: F DIF: 2 REF: 1-1NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity costTOP:
5、Tradeoffs MSC: Interpretive5. Choosing not to attend a concert so that you can study for your exam is an example of a tradeoff.ANS: T DIF: 2 REF: 1-1NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity costTOP: Tradeo
6、ffs MSC: Applicative6. Efficiency means everyone in the economy should receive an equal share of the goods and services produced.ANS: F DIF: 2 REF: 1-1NAT: Analytic LOC: Efficiency and Equity TOP: EqualityMSC: Definition
7、al7. Equality refers to how the pie is divided, and efficiency refers to the size of the economic pie.ANS: T DIF: 2 REF: 1-1NAT: Analytic LOC: Efficiency and Equity TOP: Equality | EfficiencyMSC: Definitional8. Governmen
8、t policies that improve equality usually increase efficiency at the same time.ANS: F DIF: 1 REF: 1-1NAT: Analytic LOC: Efficiency and Equity TOP: Efficiency | EqualityMSC: Interpretive9. An individual deciding how to all
9、ocate her limited time is dealing with both scarcity and trade-offs.ANS: T DIF: 1 REF: 1-1NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity costTOP: Opportunity cost MSC: Interpretative10. The cost of an action is
10、measured in terms of foregone opportunities.ANS: T DIF: 1 REF: 1-1NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity costTOP: Opportunity cost MSC: Interpretive11. Tuition is the single-largest cost of attending col
11、lege for most students.ANS: F DIF: 1 REF: 1-1NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity costTOP: Opportunity cost MSC: InterpretiveChapter 1/Ten Principles of Economics ? 323. The invisible hand ensures th
12、at economic prosperity is distributed equally.ANS: F DIF: 2 REF: 1-2NAT: Analytic LOC: Markets, market failure, and externalitiesTOP: The invisible hand MSC: Definitional24. A market economy cannot produce a socially des
13、irable outcome because individuals are motivated by their own selfish interests.ANS: F DIF: 2 REF: 1-2NAT: Analytic LOC: Markets, market failure, and externalitiesTOP: Market economy MSC: Interpretive25. The government
14、can potentially improve market outcomes if market inequalities or market failure exists.ANS: T DIF: 2 REF: 1-2NAT: Analytic LOC: Markets, market failure, and externalities | The role of governmentTOP: Government | Market
15、 economy MSC: Interpretive26. One way that governments can improve market outcomes is to ensure that individuals are able to own and exercise control over their scarce resources.ANS: T DIF: 2 REF: 1-2NAT: Analytic LOC:
16、Markets, market failure, and externalities | The role of governmentTOP: Property rights MSC: Interpretive27. Market failure refers to a situation in which the market does not allocate resources efficiently.ANS: T DIF: 1
17、REF: 1-2NAT: Analytic LOC: Markets, market failure, and externalitiesTOP: Market failure MSC: Definitional28. Market power and externalities are two possible causes of market failure.ANS: T DIF: 1 REF: 1-2NAT: Analytic L
18、OC: Markets, market failure, and externalitiesTOP: Market failure MSC: Definitional29. Productivity is defined as the quantity of goods and services produced from each unit of labor input.ANS: T DIF: 1 REF: 1-3NAT: Analy
19、tic LOC: Productivity and growthTOP: ProductivityMSC: Definitional30. Inflation is the primary determinant of a country's living standards.ANS: F DIF: 2 REF: 1-3NAT: Analytic LOC: Productivity and growthTOP: Producti
20、vity | Standard of living MSC: Interpretive31. Inflation increases the value of money.ANS: F DIF: 2 REF: 1-3NAT: Analytic LOC: Unemployment and Inflation TOP: InflationMSC: Interpretive32. Inflation measures the increase
21、 in the quantity of goods and services produced from each hour of a worker’s time.ANS: F DIF: 1 REF: 1-3NAT: Analytic LOC: Unemployment and Inflation TOP: Inflation | ProductivityMSC: Definitional33. In the long run the
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