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MacroEconomics 15th Canadian Edition by Christopher T.S. Ragan – Test Bank
Economics – Canadian Edition, 15e (Ragan)
Chapter 1 Economic Issues and Concepts
1.1 What Is Economics?
1) Which of the following statements provides the best definition of economics?
- A) The study of the most equitable distribution of scarce resources.
- B) The study of the use of scarce resources to satisfy unlimited human wants.
- C) The study of the production of goods and services.
- D) The study of the productive capacity of a nation’s factors of production.
- E) The study of production and increasing its efficiency.
2) Society’s resources are often divided into broad categories. They are
- A) goods and services.
- B) factors of consumption.
- C) land, labour, and capital.
- D) population and natural resources.
- E) tangible commodities and intangible commodities.
3) Consider the following list: a worker with training in video gaming technology, 10 hectares of arable land in southern Ontario, a fishing trawler in Nova Scotia, an ice-cream truck at a park in Quebec. Each of these is an example of
- A) a factor of production.
- B) a capital resource.
- C) a commodity.
- D) goods and services.
- E) an economic service.
4) A basic underlying point in economics is that
- A) people have unlimited wants in the face of limited resources.
- B) there are unlimited resources.
- C) governments should satisfy the needs of the people.
- D) people have limited wants in the face of limited resources.
- E) governments should never interfere in the workings of a market economy.
5) Which of the following best describes the study of economics?
- A) how to plan an economy
- B) how to limit human wants so that scarce resources are sufficient
- C) why resources are scarce
- D) the allocation of scarce resources among alternative uses
- E) how to distribute income as equally as possible
6) Economics can best be described as
- A) the study of how a society ought to allocate its resources.
- B) the study of the use of scarce resources to satisfy unlimited human wants.
- C) the application of sophisticated mathematical models to address social problems.
- D) a normative science.
- E) the study of how to reduce inflation and unemployment.
7) Scarcity is likely to be
- A) a problem that will be solved by the proper use of available resources.
- B) unique to the twentieth century.
- C) a problem that will always exist.
- D) a result of the work ethic.
- E) eliminated with a better understanding of economics.
8) Which of the following statements best describes the economic concept of scarcity?
- A) Society is not employing all of its available resources in an efficient manner.
- B) People’s wants can never be satisfied by the available resources.
- C) Scarcity afflicts only poor countries.
- D) Too many frivolous goods and services are produced at the expense of socially desirable goods and services.
- E) Production is efficient, but distribution is inefficient.
9) Which of the following statements best describes the underlying feature in most economic problems?
- A) People have unlimited wants in the face of limited resources.
- B) There are unlimited resources.
- C) Our country is rich; we just don’t realize it.
- D) People have limited wants in the face of limited resources.
- E) Governments should never interfere in the workings of a market economy.
10) Because resources are scarce, individuals are required to
- A) make choices among alternatives.
- B) use resources inefficiently.
- C) sacrifice production but not consumption.
- D) improve distribution but not production.
- E) improve production but not distribution.