Download Chapter-1 Test Bank Tenth Edition Parkin PDF

TitleChapter-1 Test Bank Tenth Edition Parkin
TagsMacroeconomics Economics Capital (Economics) Factors Of Production
File Size1.4 MB
Total Pages189
Document Text Contents
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Copyright © 2012 Pearson Education, Inc.

Microeconomics, 10e (Parkin)
Chapter 1 What Is Economics?

1 Definition of Economics

1) All economic questions are about
A) how to make money.
B) what to produce.
C) how to cope with scarcity.
D) how to satisfy all our wants.
Answer: C
Topic: Scarcity
Skill: Recognition
Question history: Previous edition, Chapter 1
AACSB: Reflective Thinking

2) All economic questions arise because we
A) want more than we can get.
B) want more than we need.
C) have an abundance of resources.
D) have limited wants that need to be satisfied.
Answer: A
Topic: Scarcity
Skill: Recognition
Question history: Previous edition, Chapter 1
AACSB: Reflective Thinking

3) Economics is best defined as the study of how people, businesses, governments, and societies
A) choose abundance over scarcity.
B) make choices to cope with scarcity.
C) use their infinite resources.
D) attain wealth.
Answer: B
Topic: Scarcity
Skill: Conceptual
Question history: Previous edition, Chapter 1
AACSB: Reflective Thinking

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Copyright © 2012 Pearson Education, Inc.

4) Scarcity is a situation in which
A) people cannot satisfy all their wants.
B) most people can get only bare necessities.
C) people can satisfy all their wants.
D) some people can get all they want and some cannot.
Answer: A
Topic: Scarcity
Skill: Recognition
Question history: Previous edition, Chapter 1
AACSB: Reflective Thinking

5) Economists point out that scarcity confronts
A) neither the poor nor the rich.
B) the poor but not the rich.
C) the rich but not the poor.
D) both the poor and the rich.
Answer: D
Topic: Scarcity
Skill: Conceptual
Question history: Previous edition, Chapter 1
AACSB: Ethical Reasoning

6) Scarcity is
A) our inability to satisfy all our wants.
B) a situation that exists during economic recessions but not during economic booms.
C) eliminated by choices.
D) an economic problem only for poor people.
Answer: A
Topic: Scarcity
Skill: Recognition
Question history: Modified 10th edition
AACSB: Reflective Thinking

7) When an economist talks of scarcity, the economist is referring to the
A) ability of society to employ all of its resources.
B) ability of society to consume all that it produces.
C) inability of society to satisfy all human wants because of limited resources.
D) ability of society to continually make technological breakthroughs and increase production.
Answer: C
Topic: Scarcity
Skill: Recognition
Question history: Previous edition, Chapter 1
AACSB: Reflective Thinking

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22) The above figure shows the relationship between the Joneses' total consumption and total
household income. The figure illustrates that the Joneses' total consumption varies
A) directly with their total household income.
B) independently of their total household income.
C) inversely with their total household income.
D) negatively with their income.
Answer: A
Topic: Variables That Move in the Same Direction
Skill: Analytical
Question history: Previous edition, Chapter 1
AACSB: Analytical Skills

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23) The relationship depicted in the above figure is
A) a negative linear relationship.
B) a positive linear relationship.
C) a positive becoming less steep relationship.
D) a positive becoming steeper relationship.
Answer: C
Topic: Variables That Move in the Same Direction
Skill: Recognition
Question history: Previous edition, Chapter 1
AACSB: Analytical Skills

24) Whenever one variable increases, another variable decreases. The two variables are
A) definitely related through a third variable.
B) negatively related.
C) positively related.
D) unrelated to each other.
Answer: B
Topic: Variables That Move in Opposite Directions
Skill: Recognition
Question history: Previous edition, Chapter 1
AACSB: Analytical Skills

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7) The slope of a line is the change in the y-axis variable divided by the change in the x-axis
variable.
Answer: TRUE
Topic: The Slope of a Relationship
Skill: Recognition
Question history: Previous edition, Chapter 1
AACSB: Analytical Skills

8) The slope of a straight line increases as the numbers on the x-axis become larger.
Answer: FALSE
Topic: The Slope of a Relationship
Skill: Conceptual
Question history: Previous edition, Chapter 1
AACSB: Analytical Skills

9) To calculate the slope of a curved line, you can calculate the slope at a point on the curve or
across an arc of the curve.
Answer: TRUE
Topic: The Slope of a Relationship
Skill: Conceptual
Question history: Previous edition, Chapter 1
AACSB: Analytical Skills

10) If the change in the y-axis variable is 4 and the change in the x-axis variable is 2, the slope of
this line is 1/2.
Answer: FALSE
Topic: The Slope of a Relationship
Skill: Analytical
Question history: Previous edition, Chapter 1
AACSB: Analytical Skills

11) If the change in the y-axis variable is 6 and the change in the x-axis variable is 5, the slope of
this line is 6/5.
Answer: TRUE
Topic: The Slope of a Relationship
Skill: Analytical
Question history: Previous edition, Chapter 1
AACSB: Analytical Skills

12) To graph a relationship that involves more than two variables, we use the "ceteris paribus"
assumption.
Answer: TRUE
Topic: Graphing Relationships Among More Than Two Variables
Skill: Conceptual
Question history: Previous edition, Chapter 1
AACSB: Reflective Thinking

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13) "Ceteris paribus" refers to the idea that if more than two variables are graphed, only one
variable must be held constant.
Answer: FALSE
Topic: Graphing Relationships Among More Than Two Variables
Skill: Conceptual
Question history: Previous edition, Chapter 1
AACSB: Reflective Thinking

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