Econ111 Midterm Questions

Topics: Economics, Costs, Marginal cost Pages: 143 (28191 words) Published: November 2, 2011
Foundations of Microeconomics, 5e (Bade/Parkin)
Chapter 1 Getting Started

1.1 Definition and Questions

1) Scarcity exists because
A) human wants exceed the resources available to satisfy them. B) some individuals have low income.
C) the costs of production are high.
D) some people make bad economic decisions.
E) people take too much leisure time.
Answer: A
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Author: TS
AACSB: Reflective thinking

2) Scarcity
A) is the inability to satisfy all our wants.
B) leads to higher prices.
C) applies only to people living in poverty.
D) is not something that affects very rich people.
E) used to exist everywhere but has been eliminated in advanced economies. Answer: A
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Author: SA
AACSB: Reflective thinking

3) Scarcity requires that we
A) produce efficiently.
B) learn to limit our wants.
C) have the most rapid economic growth possible.
D) have unlimited resources.
E) make choices about what goods and services to produce.
Answer: E
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Author: PH
AACSB: Reflective thinking

4) Scarcity means that
A) what we can produce with our resources is greater than our material wants. B) resources are unlimited.
C) wants are greater than what we can produce with out resources. D) governments must make up for shortages in resources.
E) choices made in self-interest cannot be the same as those made in the social interest. Answer: C
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Author: PH
AACSB: Reflective thinking

5) Because human wants are insatiable and unlimited while available resources are limited, people are said to face the problem of A) scarcity.
B) why to produce.
C) macroeconomics.
D) microeconomics.
E) social interest versus self-interest.
Answer: A
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Author: PH
AACSB: Reflective thinking

6) Which of the following statements best describes the study of economics? Economics studies how A) to organize production so that scarcity does not occur.
B) firms make profits.
C) we make choices in the face of scarcity.
D) to create incentives so that scarcity does not exist.
E) businesses reach decisions.
Answer: C
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Author: CD
AACSB: Reflective thinking

7) Scarcity forces people to
A) choose among available alternatives.
B) cheat and steal.
C) be unwilling to help others.
D) live at a low standard of living.
E) consume as much as they can as quickly as they can.
Answer: A
Topic: Scarcity
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Author: TS
AACSB: Reflective thinking

8) Scarcity means we must
A) consume less.
B) produce less.
C) make choices.
D) earn more.
E) work more.
Answer: C
Topic: Scarcity
Skill: Level 1: Definition
Section: Checkpoint 1.1
Author: SB
AACSB: Reflective thinking

9) What is the reason that all economic issues and problems occur? A) All nations use some form of money to buy and sell goods and services. B) Humans are always wasteful and inefficient in production and consumption. C) Powerful governments are able to control production and consumption. D) Human wants exceed the resources available to satisfy them. E) People seek only their own self-interest.

Answer: D
Topic: Scarcity
Skill: Level 2: Using definitions
Section: Checkpoint 1.1
Author: TS
AACSB: Reflective thinking

10) The study of economics is best described as a study of
A) the factors that influence the stock and bond markets.
B) capitalism.
C) the choices made in producing goods and services.
D) coping with scarcity, and choices made as a result of scarcity in a society. E) how people earn a living.
Answer: D
Topic: Definition of...
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