Description

Test Bank Principles of Microeconomics by Case, Karl E., Fair, Ray C, Oster, Sharon C

1.1
W hy Study Economics?
1
M ultiple Choice
1)
The reasons to study economics include which of the following?
A)
to be an informed voter
B)
to understand society and global affairs
C)
to learn a way of thinking
D)
all of the above
Answer:
D
Diff: 1
Topic:
W hy Study Economics?
Skill:
Fact
2)
Marginalism is
A)
the best alternative that we forego when making a decision.
B)
the study of how societies choose to use scarce resources.
C)
a market situation in which profit opportunities are eliminated almost
instantaneously.
D)
the process of analyzing the additional costs or benefits arising from a
decision.
Answer:
D
Diff: 1
Topic:
W hy Study Economics?
Skill:
Definition
3)
Economics is best defined as the study of
A)
financial decision-making.
B)
how consumers make purchasing decisions.
C)
choices made by people faced with scarcity.
D)
inflation, unemployment, and economic growth.
Answer:
C
Diff: 2
Topic:
W hy Study Economics?
Skill:
Definition
4)
The Industrial Revolution refers to the rise of the modern factory system in
________ during
the late eighteenth and early nineteenth centuries.
A)
the United States
B)
England
C)
France
D)
Germany
Answer:
B
Diff: 1
Topic:
W hy Study Economics?
Skill:
Fact