Test Bank For Microeconomics For Today 9th Edition by Irvin B. Tucker

Test Bank For Microeconomics For Today 9th Edition by Irvin B. Tucker

CHAPTER NO 2

1. ​ Which of the following best describes the three fundamental economic questions?

a. hat to produce, when to produce, and where to produce.

b. ​What time to produce, what place to produce, and how to produce.

c. ​What to produce, when to produce, and for whom to produce.

d. ​What to produce, how to produce, and for whom to produce.

ANSWER: d

POINTS: 1

2. Which of the following is not one of the three fundamental economic questions?

a. What happens when you add to or subtract from a current situation?

b. For whom to produce?

c. How to produce?

d. What to produce?

ANSWER: a

POINTS: 1

3. Which of the following correctly lists the three fundamental economic questions?

a. If to produce? Why to produce? When to produce?

b. If to produce? What to produce? How to produce?

c. Why to produce? What to produce? How to produce?

d. What to produce? How to produce? For whom to produce?

ANSWER: d

POINTS: 1

DIFFICULTY: Easy

TOPICS: Three Fundamental Economic Questions

KEYWORDS: Bloom’s: Comprehension

4. Three basic decisions must be made by all economies. What are they?

a. How much will be produced, when it will be produced, and how much it will cost.

b. What the price of each good will be, who will produce each good, and who will consume each good.

c. What will be produced, how goods will be produced, and for whom goods will be produced.

d. How the opportunity cost principle will be applied, if and how the law of comparative advantage will be utilized, and whether the production possibilities constraint will apply.

ANSWER: c

POINTS: 1

DIFFICULTY: Easy

TOPICS: Three Fundamental Economic Questions

KEYWORDS: Bloom’s: Comprehension

5. Because of the problem of scarcity, each economic system must make which of the following choices?

a. How to produce? b. What to produce?

c. For whom to produce? d. All of these.

ANSWER: d

POINTS: 1

DIFFICULTY: Easy

TOPICS: Three Fundamental Economic Questions

KEYWORDS: Bloom’s: Comprehension

6. Which fundamental economic question is most closely related to the issues of income distribution and poverty?

a. The What to Produce question. b. The Why to Produce question.

c. The How to Produce question. d. The For Whom to Produce question.

ANSWER: d

POINTS: 1

DIFFICULTY: Moderate

TOPICS: Three Fundamental Economic Questions

KEYWORDS: Bloom’s: Comprehension

7. Which fundamental economic question requires society to choose the technological and resource mix used to produce goods?

a. The What to Produce question. b. The Why to Produce question.

c. The How to Produce question. d. The For Whom to Produce question.

ANSWER: c

POINTS: 1

DIFFICULTY: Moderate

TOPICS: Three Fundamental Economic Questions

KEYWORDS: Bloom’s: Comprehension

8. Opportunity cost:

a. represents the best alternative sacrificed for a chosen alternative.

b. has no relationship to the various alternatives that must be given up when a choice is made in the context of scarcity.

c. represents the worst alternative sacrificed for a chosen alternative.

d. Represents all possible alternatives sacrificed for a chosen alternative.

ANSWER: a

POINTS: 1

9. The opportunity cost of an action is:

a. the monetary payment the action required.

b. the total time spent by all parties in carrying out the action.

c. the value of the best opportunity that must be sacrificed in order to take the action.

d. the cost of all alternative actions that could have been taken, added together.

ANSWER: c

POINTS: 1

DIFFICULTY: Moderate

TOPICS: Opportunity Cost

KEYWORDS: Bloom’s: Comprehension

10. The highest valued alternative that must be given up in order to choose an option is called the:

a. opportunity cost. b. utility cost.

c. scarcity expense. d. disutility option.

ANSWER: a

POINTS: 1

DIFFICULTY: Easy

TOPICS: Opportunity Cost

KEYWORDS: Bloom’s: Knowledge