Copyright Cengage Learning. Powered by Cognero. Page 1

Copyright Cengage Learning. Powered by Cognero.Page 1

• The English word that comes from the Greek word for "one who manages a household" is
• market.

b.consumer.

• producer.

d.economy.

ANSWER:d

DIFFICULTY: Easy

LEARNING OBJECTIVES: ECON.MANK.012 - Apply basic, economic principles of individual decision making that determine how an economy generally works.

TOPICS: Economic thinking

KEYWORDS: BLOOM'S: Knowledge

CUSTOM ID: 001.01.0 - MC - MANK08

• The word “economy” comes from the Greek word oikonomos, which means
• “environment.”

b.“production.”

• “one who manages a household.”

d.“one who makes decisions.”

ANSWER:c

DIFFICULTY: Easy

LEARNING OBJECTIVES: ECON.MANK.012 - Apply basic, economic principles of individual decision making that determine how an economy generally works.

TOPICS: Economic thinking

KEYWORDS: BLOOM'S: Knowledge

CUSTOM ID: 002.01.0 - MC - MANK08

• Resources are
• scarce for households but plentiful for economies.

b.plentiful for households but scarce for economies.

• scarce for households and scarce for economies.

d.plentiful for households and plentiful for economies.

ANSWER:c

DIFFICULTY: Easy

LEARNING OBJECTIVES: ECON.MANK.012 - Apply basic, economic principles of individual decision making that determine how an economy generally works.

TOPICS: Economic thinking

Scarcity KEYWORDS: BLOOM'S: Comprehension

CUSTOM ID: 003.01.0 - MC - MANK08

• In considering how to allocate its scarce resources among its various members, a household considers
• each member’s abilities.

b.each member’s efforts.

• each member’s desires.

d.All of the above are correct.

ANSWER:d 1 / 4

Copyright Cengage Learning. Powered by Cognero.Page 2

DIFFICULTY: Easy

LEARNING OBJECTIVES: ECON.MANK.012 - Apply basic, economic principles of individual decision making that determine how an economy generally works.

TOPICS: Economic thinking

Scarcity KEYWORDS: BLOOM'S: Comprehension

CUSTOM ID: 004.01.0 - MC - MANK08

• Fundamentally, economics deals with
• scarcity.

b.money.

• poverty.

d.banking.

ANSWER:a

DIFFICULTY: Easy

LEARNING OBJECTIVES: ECON.MANK.012 - Apply basic, economic principles of individual decision making that determine how an economy generally works.

TOPICS: Economic thinking

Scarcity KEYWORDS: BLOOM'S: Knowledge

CUSTOM ID: 005.01.0 - MC - MANK08

• Which of the following is correct?
• The word economy comes from the Greek word for “rational thinker.”

b.Economists study the management of scarce resources.

• Because economists believe that people pursue their best interests, they are not interested in how people

interact.d.All of the above are correct.

ANSWER:b

DIFFICULTY: Easy

LEARNING OBJECTIVES: ECON.MANK.024 - Classify the different functions an economist may serve.

TOPICS: Economic thinking

Scarcity KEYWORDS: BLOOM'S: Knowledge

CUSTOM ID: 006.01.0 - MC - MANK08

• The overriding reason why households and societies face many decisions is that
• resources are scarce.

b.goods and services are not scarce.

• incomes fluctuate with business cycles.

d.people, by nature, tend to disagree.

ANSWER:a

DIFFICULTY: Moderate

LEARNING OBJECTIVES: ECON.MANK.012 - Apply basic, economic principles of individual decision making that determine how an economy generally works.

TOPICS: Economic thinking

Scarcity 2 / 4

Copyright Cengage Learning. Powered by Cognero.Page 3 KEYWORDS: BLOOM'S: Comprehension

CUSTOM ID: 007.01.0 - MC - MANK08

• A society allocates its scarce resources to various uses. These scarce resources include
• land.

b.people.

• machines.

d.All of the above are correct.

ANSWER:d

DIFFICULTY: Moderate

LEARNING OBJECTIVES: ECON.MANK.012 - Apply basic, economic principles of individual decision making that determine how an economy generally works.

TOPICS: Economic thinking

Scarcity KEYWORDS: BLOOM'S: Comprehension

CUSTOM ID: 008.01.0 - MC - MANK08

• The phenomenon of scarcity stems from the fact that
• most economies’ production methods are not very good.

b.in most economies, wealthy people consume disproportionate quantities of goods and services.

• governments restrict production of too many goods and services.

d.resources are limited.

ANSWER:d

DIFFICULTY: Moderate

LEARNING OBJECTIVES: ECON.MANK.012 - Apply basic, economic principles of individual decision making that determine how an economy generally works.

TOPICS: Economic thinking

Scarcity KEYWORDS: BLOOM'S: Comprehension

CUSTOM ID: 009.01.0 - MC - MANK08

• Approximately what percentage of the world's economies experience scarcity?
• 10%

b.40%

• 85%

d.100%

ANSWER:d

DIFFICULTY: Easy

LEARNING OBJECTIVES: ECON.MANK.012 - Apply basic, economic principles of individual decision making that determine how an economy generally works.

TOPICS: Economic thinking

Scarcity KEYWORDS: BLOOM'S: Comprehension

CUSTOM ID: 010.01.0 - MC - MANK08

• When a society cannot produce all the goods and services people wish to have, the economy is experiencing
• scarcity. 3 / 4

Copyright Cengage Learning. Powered by Cognero.Page 4 b.surpluses.

• inefficiencies.

d.inequalities.

ANSWER:a

DIFFICULTY: Moderate

LEARNING OBJECTIVES: ECON.MANK.012 - Apply basic, economic principles of individual decision making that determine how an economy generally works.

TOPICS: Economic thinking

Scarcity KEYWORDS: BLOOM'S: Comprehension

CUSTOM ID: 011.01.0 - MC - MANK08

• Which of the following products would be considered scarce?
• bread

b.baseballs autographed by Babe Ruth

• motorcycles

d.All of the above are correct.

ANSWER:d

DIFFICULTY: Moderate

LEARNING OBJECTIVES: ECON.MANK.012 - Apply basic, economic principles of individual decision making that determine how an economy generally works.

TOPICS: Economic thinking

Scarcity KEYWORDS: BLOOM'S: Comprehension

CUSTOM ID: 012.01.0 - MC - MANK08

• In the broadest sense, economics is the study of
• production methods.

b.how society manages its scarce resources.

• how households decide who performs which tasks.

d.the interaction of business and government.

ANSWER:b

DIFFICULTY: Easy

LEARNING OBJECTIVES: ECON.MANK.012 - Apply basic, economic principles of individual decision making that determine how an economy generally works.

TOPICS: Economic thinking

Scarcity KEYWORDS: BLOOM'S: Knowledge

CUSTOM ID: 013.01.0 - MC - MANK08

• The study of how society manages its scarce resources is most closely associated with which field of study?
• environmental studies

b.economics

• management

d.accounting

ANSWER:b

DIFFICULTY: Easy

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