Test Bank For Microeconomics Principles and Policy 13th Edition by William J. Baumol

Test Bank For Microeconomics Principles and Policy 13th Edition by William J. Baumol

CHAPTER NO 3

1. If the budget deficit was eliminated, the federal government would have more money than it could spend.

a. True

b. False

ANSWER: False

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: DISC: Scarcity, tradeoffs, and o – DISC: Scarcity, tradeoffs, and opportunity cost

NATIONAL STANDARDS: United States – BPROG: Analytic

ACCREDITING STANDARDS: Scarcity, tradeoffs, and opportu – Scarcity, tradeoffs, and opportunity cost

TOPICS: Scarcity, Choice, and Opportunity Cost

KEYWORDS: BLOOM’S: Comprehension

2. Scarcity is the fundamental problem of the economy.

a. True

b. False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: DISC: Scarcity, tradeoffs, and o – DISC: Scarcity, tradeoffs, and opportunity cost

NATIONAL STANDARDS: United States – BPROG: Analytic

ACCREDITING STANDARDS: Scarcity, tradeoffs, and opportu – Scarcity, tradeoffs, and opportunity cost

TOPICS: Scarcity, Choice, and Opportunity Cost

KEYWORDS: BLOOM’S: Comprehension

3. Millionaires do not face the problem of scarcity.

a. True

b. False

ANSWER: False

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: DISC: Scarcity, tradeoffs, and o – DISC: Scarcity, tradeoffs, and opportunity cost

NATIONAL STANDARDS: United States – BPROG: Analytic

ACCREDITING STANDARDS: Scarcity, tradeoffs, and opportu – Scarcity, tradeoffs, and opportunity cost

TOPICS: Scarcity, Choice, and Opportunity Cost

KEYWORDS: BLOOM’S: Comprehension

4. Resources are used to create goods and services.

a. True

b. False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: DISC: Scarcity, tradeoffs, and o – DISC: Scarcity, tradeoffs, and opportunity cost

NATIONAL STANDARDS: United States – BPROG: Analytic

ACCREDITING STANDARDS: Scarcity, tradeoffs, and opportu – Scarcity, tradeoffs, and opportunity cost

TOPICS: Scarcity, Choice, and Opportunity Cost

KEYWORDS: BLOOM’S: Comprehension

5. Inputs in production processes are called resources.

a. True

b. False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: DISC: Scarcity, tradeoffs, and o – DISC: Scarcity, tradeoffs, and opportunity cost

NATIONAL STANDARDS: United States – BPROG: Analytic

ACCREDITING STANDARDS: Scarcity, tradeoffs, and opportu – Scarcity, tradeoffs, and opportunity cost

TOPICS: Scarcity, Choice, and Opportunity Cost

KEYWORDS: BLOOM’S: Comprehension