Test Bank For Basic Economics 15th Edition by Frank V. Mastrianna
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Course
Basic Economics - Test Bank
Institution
Basic Economics - Test Bank
Chapter 3—The U.S. Economic System MULTIPLE CHOICE
1.
2.
3.
4.
5.
6.
7.
Every society faces some basic economic choices such as
a. what quantities of goods and services to produce
b. which resources to use
c. who gets to have what share of the output
d. all of these
ANS: D PTS: 1
A...
1. Generally, in economics we study how people
a. react to changes in government policy
b. make choices when resources are scarce
c. react to rising prices
d. get increases in income
ANS: B PTS: 1
2. Economics can be classified best as a(n)
a. exact science
b. physical science
c. social science
d. natural science
ANS: C PTS: 1
3. Which of the following areas of study is included in the field of macroeconomics?
a. electricians’ wage rates
b. monopolistic pricing
c. price of automobiles
d. general price level
ANS: D PTS: 1
4. An example of a macroeconomic model is one that considers
a. how the price of chicken influences the quantity of chicken bought
b. why the size of the total national output depends on the size of total spending
c. how the output of a product is influenced by the cost of production for the product
d. all of these
ANS: B PTS: 1
5. The interactions of producers and consumers in individual markets are part of the study of
a. macroeconomics
b. monetary economics
c. normative economics
d. microeconomics
ANS: D PTS: 1
6. The process of allocating the total product among the resources involved is referred to as
a. geographic distribution
b. functional distribution
c. marketing distribution
d. frictional distribution
ANS: B PTS: 1
7. Putting a business venture together is the function of the
a. capitalist
, b. manager
c. labor leader
d. entrepreneur
ANS: D PTS: 1
8. As economists use the term, capital means
a. such things as machinery and equipment
b. such things as money and credit
c. the profits that come from hiring and using labor and natural resources
d. all of these
ANS: A PTS: 1
9. The largest share of the total income of the United States is currently being distributed in the form of
a. interest
b. rent
c. wages
d. profits
ANS: C PTS: 1
10. For the use of their capital in production, owners receive
a. wages
b. rent
c. interest
d. profit
ANS: C PTS: 1
11. For the use of the employee’s participation in production, an employee receives
a. wages
b. rent
c. interest
d. profit
ANS: A PTS: 1
12. If an economist is trying to figure out, in a certain situation, “What would happen if?”, then that
economist is working in the area of
a. normative economics
b. positive economics
c. the theory of the firm
d. welfare economics
ANS: B PTS: 1
13. Which of the following is the study of “what is” rather than “what ought to be”?
a. normative economics
b. subjective economics
c. positive economics
d. the theory of the origin of humanity
ANS: C PTS: 1
14. Determining “what ought to be” in the economy is considered
, a. positive economics
b. normative economics
c. distributive economics
d. mesoeconomics
ANS: B PTS: 1
15. An editorial in a newspaper calling for the government to abolish the minimum wage because it takes
advantage of consumers is an example of a(n)
a. positive economic statement
b. pure economic statement
c. normative economic statement
d. abstract economic statement
ANS: C PTS: 1
16. If you heard someone say that coal miners should be paid more wages to enable them to adequately
support their families, that would be a statement of
a. positive economics
b. normative economics
c. radical economics
d. none of these
ANS: B PTS: 1
17. Utility as an economic term refers to
a. the amount of electricity generated
b. the ability of a good to satisfy a want
c. tangible goods only
d. services only
ANS: B PTS: 1
18. An economic service need not be
a. useful
b. scarce
c. transferable
d. tangible
ANS: D PTS: 1
19. An example of a free good is
a. public education
b. CARE packages provided free to poor people overseas
c. the water bubbling up from the natural spring in your backyard
d. the ride you give a hitchhiker
ANS: C PTS: 1
20. A free good lacks the element of
a. usefulness
b. scarcity
c. transferability
d. tangibility
ANS: B PTS: 1
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