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Principles of Macroeconomics, 9e - TB1 (Case/Fair/Oster)
Chapter 1
The Scope and Method of Economics
1.1
Why Study Economics?
1
Multiple Choice
1)
Which of the following is NOT listed in the book as a reason to study economics?
A)
to learn a way of thinking
B)
to understand society and global affairs
C)
to be an informed voter
D)
to learn how to make lots of money
Answer:
D
Diff: 1
Topic:
Why Study Economics?
Skill:
Fact
2)
Among the fundamental concepts in economics are
A)
opportunity cost.
B)
marginalism.
C)
efficient markets.
D)
all of the above
Answer:
D
Diff: 1
Topic:
Why Study Economics?
Skill:
Fact
3)
Which of the following is the best definition of economics?
A)
the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided
B)
the study of how consumers spend their income
C)
the study of how business firms decide what inputs to hire and what outputs to produce
D)
the study of how the federal government allocates tax dollars
Answer:
A
Diff: 2
Topic:
Why Study Economics?
Skill:
Definition
4)
The rise of the modern factory system in England during the late eighteenth and early nineteenth centuries is known as the
A)
Great Migration.
B)
Industrial Revolution.
C)
Wealth of Nations.
D)
Dark Ages.
Answer:
B
Diff: 1
Topic:
Why Study Economics?
Skill:
Fact
5)
Which of the following statements is NOT correct?
A)
Economics is a behavioral science.
B)
In large measure, economics is the study of how people make choices.
C)
If poverty was eliminated there would be no reason to study economics.
D)
Economic analysis can be used to explain how both individuals and societies make decisions.
Answer:
C
Diff: 1
Topic:
Why Study Economics?
Skill:
Fact
6)
The study of economics
A)
is a very narrow endeavor.
B)
is a way of analyzing decision-making processes ca
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