Homework

Chapter 1

Ten Principles of Economics

TRUE/FALSE

1. Scarcity means that there is less of a good or resource available than people wish to have.

ANS: T DIF: 1 REF: 1-0

NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost

TOP: Scarcity MSC: Definitional

2. Economics is the study of how evenly goods and services are distributed within society.

ANS: F DIF: 1 REF: 1-0

NAT: Analytic LOC: The Study of economics, and definitions in economics

TOP: Economics MSC: Definitional

3. Economics is the study of how society allocates its unlimited resources.

ANS: F DIF: 1 REF: 1-0

NAT: Analytic LOC: The Study of economics, and definitions in economics

TOP: Economics MSC: Definitional

4. With careful planning, we can usually get something that we like without having to give up something else that we like.

ANS: F DIF: 2 REF: 1-1

NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost

TOP: Tradeoffs MSC: Interpretive

5. Choosing not to attend a concert so that you can study for your exam is an example of a tradeoff.

ANS: T DIF: 2 REF: 1-1

NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost

TOP: Tradeoffs MSC: Applicative

6. Efficiency means everyone in the economy should receive an equal share of the goods and services produced.

ANS: F DIF: 2 REF: 1-1

NAT: Analytic LOC: Efficiency and Equity TOP: Equality

MSC: Definitional

7. Equality refers to how the pie is divided, and efficiency refers to the size of the economic pie.

ANS: T DIF: 2 REF: 1-1

NAT: Analytic LOC: Efficiency and Equity TOP: Equality | Efficiency

MSC: Definitional

8. Government policies that improve equality usually increase efficiency at the same time.

ANS: F DIF: 1 REF: 1-1

NAT: Analytic LOC: Efficiency and Equity TOP: Efficiency | Equality

MSC: Interpretive

9. An individual deciding how to allocate her limited time is dealing with both scarcity and trade-offs.

ANS: T DIF: 1 REF: 1-1

NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost

TOP: Opportunity cost MSC:...