Test Bank For Principles of Microeconomics Fourth Edition Dirk Mateer Lee Coppock Chapter 1-19
CHAPTER 1 The Five Foundations of Economics CONCEPT MAP I. Economics II. Macroeconomics III. Microeconomics IV. Incentives A. Positive Incentives B. Negative Incentives C. Direct Incentives D. Indirect Incentives V. Scarcity VI. Trade-offs VII. Opportunity Cost VIII. Marginal Analysis IX. Trade A. Comparative Advantage B. Specialization
MULTIPLE-CHOICE QUESTIONS 1. In economics, choices are necessary because of the presence of: a. luxuries. b. inefficiency. c. needs. d. scarcity. e. incentives. ANS: D
DIF: Easy TOP: I.REF: What Is Economics?MSC: Remembering
2. Economics is the study of: a. how to make money. b. how to allocate resources to satisfy wants and needs. c. capitalism. d. how to make workers more productive and firms more profitable. e. markets. ANS: B DIF: Easy TOP: I.REF: What Is Economics?MSC: Remembering