Economics - Chapter 1

Chapter 1

Ten Principles of Economics
Test A

[i].Economics deals primarily with the concept of
a.change.
b.power.
c.poverty.
d.scarcity.
serve well: d.scarcity.

showcase: M KEY1: D clinical: 1 haphazard: Y


[ii].Scarcity exists when
a.the price of a serious rises.
b.society send word meet the wants of every individual.
c. on that point is less(prenominal) of a good or resource available than people wish to have.
d.there is less than an infinite amount of a resource or good.
ANSWER: c.there is less of a good or resource available than people wish to have.
TYPE: M KEY1: D OBJECTIVE: 1 haphazard: Y

[iii].Economics is define as the study of
a.how society manages its scarce resources.
b.business.
c.central planning.
d. regimen regulation.
ANSWER: a.how society manages its scarce resources.
TYPE: M KEY1: D OBJECTIVE: 1 RANDOM: Y

[iv].A good commentary of equity would be
a.efficiency.
b.eliminating extreme affluence.
c.fairness.
d.everyone receiving the same income.
ANSWER: c.fairness.
TYPE: M KEY 1: D SECTION: 1 OBJECTIVE: 3 RANDOM: Y

[v].When government policies be being designed,
a.



change magnitude efficiency ordinarily results in more equity.
b.there is usually a tradeoff between equity and efficiency.
c.equity flush toilet usually be achieved without an efficiency loss.
d.equity and efficiency goals are usually independent of each other.
ANSWER: b.there is usually a tradeoff between equity and efficiency.
TYPE: M KEY1: D SECTION: 1 OBJECTIVE: 3 RANDOM: Y

[vi].The opportunity cost of an item is
a.what you give up to masturbate that item.
b.always equal to the dollar value of the item.
c.always less than the dollar value of the item.
d.the number of hours needed to earn the currency to buy it.
ANSWER: a.what you give up to get that item.
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