Test Bank For ECON Macro Principles of Macroeconomics 1st Canadian Edition By Moir O’Shaughnessy
ISBN-10 : 0176502793, ISBN-13 : 978-0176502799
1. What is the meaning of unlimited wants?
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a. |
that people always desire more of at least one good |
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b. |
that each person has an unlimited desire for every good |
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c. |
that selfish people are NOT concerned about other people |
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d. |
that people buy goods without regard to what they can afford |
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2. What statement describes the reality of scarcity?
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a. |
There are NOT enough jobs available to all people. |
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b. |
There are NOT enough resources to satisfy people’s unlimited wants. |
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c. |
There are NOT enough resources to satisfy people’s limited wants. |
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d. |
There are NOT enough taxes to fund daycare spaces. |
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3. Which of the following best describes when scarcity occurs?
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a. |
when resources are unlimited |
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b. |
when there is a shortage, so buyers cannot obtain the goods they want |
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c. |
when there is a surplus, so sellers cannot sell the goods they produce |
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d. |
when resources are insufficient to satisfy unlimited wants |
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4. Why does economic scarcity exist?
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a. |
because people have wants that are unlimited relative to the availability of resources to satisfy those wants |
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b. |
because governments have the means to provide as many services as it decides to |
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c. |
because individuals do NOT have to make choices |
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d. |
because NOT everyone has unlimited wants |
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5. What occurs when people’s wants are unlimited but resources are scarce?
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a. |
Only rich people get everything they want. |
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b. |
People must make choices. |
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c. |
More services are available than goods. |
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d. |
More goods are available than services. |
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