Test Bank For Basic Economics 14th Edition by Frank V. Mastrianna
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Course
Economics - Test Bank
Institution
Economics - Test Bank
TEST BANK CHAPTER 3 The U.S. Economic System
EXAMINATION QUESTIONS Multiple Choice
d 1. Every society faces some basic economic choices such as
b. private property rights interfere with the operation of the market system
c. the market system functions best when the rights of private property ar...
Multiple Choice
b 1. Generally, in economics we study how b. functional distribution
people c. marketing distribution
a. react to changes in government policy d. frictional distribution
b. make choices when resources are scarce d 7. Putting a business venture together is the
c. react to rising prices function of the
d. get increases in income a. capitalist
c 2. Economics can be classified best as a(n) b. manager
a. exact science c. labor leader
b. physical science d. entrepreneur
c. social science a 8. As economists use the term, capital
d. natural science means
d 3. Which of the following areas of study is a. such things as machinery and equipment
included in the field of macroeconomics? b. such things as money and credit
a. electricians’ wage rates c. the profits that come from hiring and
b. monopolistic pricing using labor and natural resources
c. price of automobiles d. all of the above
d. general price level c 9. The largest share of the total income of
b 4. An example of a macroeconomic model is the United States is currently being
a. the price of chicken influences the distributed in the form of
quantity of chicken bought a. interest
b. the size of the total national output b. rent
depends on the size of total spending c. wages
c. the output of a product is influenced by d. profits
the cost of production for the product c 10. For the use of their capital in production,
d. all of the above owners receive
d 5. The interactions of producers and a. wages
consumers in individual markets are part of b. rent
the study of c. interest
a. macroeconomics d. profit
b. monetary economics a 11. For the use of the employee’s
c. normative economics participation in production, an employee
d. microeconomics receives
b 6. The process of allocating the total product a. wages
among the resources involved is referred to b. rent
as c. interest
a. geographic distribution d. profit
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, CHAPTER ONE The Nature and Scope of Economics
d 12. Positive economics is concerned with a. the amount of electricity generated
a. building economic models b. the ability of a good to satisfy a want
b. trying to find out “what would happen c. tangible goods only
if…” d. services only
c. understanding what causes what, in d 19. An economic service need not be
economics a. useful
d. all of the above b. scarce
b 13. If an economist is trying to figure out, in c. transferable
a certain situation, “what would happen d. tangible
if…”, then that economist is working in the c 20. An example of a free good is
area of a. public education
a. normative economics b. CARE packages provided free to poor
b. positive economics people overseas
c. the theory of the firm c. the water bubbling up from the natural
d. welfare economics spring in your backyard
c 14. Which of the following is the study of d. the ride you give a hitchhiker
“what is” rather than “what ought to be”? b 21. A free good lacks the element of
a. normative economics a. usefulness
b. subjective economics b. scarcity
c. positive economics c. transferability
d. the theory of the origin of humanity d. tangibility
b 15. Determining “what ought to be” in the d 22. For a good to be scarce, it must be
economy is considered something that
a. positive economics a. has economic value
b. normative economics b. people find useful
c. distributive economics c. is available only in limited quantities
d. mesoeconomics d. all of the above
c 16. An editorial in a newspaper calling for b 23. The total value of the goods and services
the government to abolish the minimum produced over a period of time represents an
wage because it takes advantage of economy’s
consumers is an example of a(n) a. planned savings
a. positive economic statement b. total income
b. pure economic statement c. total wealth
c. normative economic statement d. capital
d. abstract economic statement
c 24. Macroeconomic policymakers do not
b 17. If you heard someone say that coal include
miners should be paid more wages to enable a. the president of the United States
them to adequately support their families, b. the U.S. Congress
that would be a statement of c. the president of GM
a. positive economics d. the secretary of the U.S. Treasury
b. normative economics
c. radical economics d 25. Profits can be thought of as
d. none of the above a. the return to enterprise
b. the reward for taking a risk and winning
b 18. Utility as an economic term refers to
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, CHAPTER ONE The Nature and Scope of Economics
c. what is left over after all wages, rent, and c. minerals, unskilled labor, semi-skilled
interest have been paid labor, skilled labor
d. all of the above d. land, buildings, machinery, money
d 26. The resource most directly associated d 32. An economic good must be
with profits is a. useful
a. land b. scarce
b. labor c. transferable
c. capital d. all of the above
d. enterprise d 33. Public parks and libraries are examples
b 27. In economics, the entrepreneur is the of
person who a. economic goods
a. acts as the go-between among different b. free goods
manufacturers c. intangible goods
b. puts together land, labor, and capital and d. public goods
tries to make a profit b 34. The rules and principles of economics
c. is a shrewd business executive who that serve as a guide for action are known as
works as a consultant to other businesses a. economic policy
to show them more profitable methods of b. economic theory
operation c. macroeconomics
d. is a visiting diplomat from France d. microeconomics
a 28. The difference between a capital good d 35. If a useful good or service exists in such
and a consumer good depends on abundance that anyone can readily obtain it
a. the purpose for which it is used without much effort,
b. how it was produced a. it is not scarce, but it is an economic
c. what it is good
d. how quickly it is used up b. it is scarce, but it is not an economic
a 29. A bulldozer used by a construction firm good
is known as a c. it is scarce, and it is an economic good
a. capital good d. it is neither scarce nor is it an economic
b. consumer good good
c. free good c 36. The stock of labor talents and skills is
d. public good known as
c 30. The ability of a good or service to a. a public good
satisfy a want is known as b. the functional distribution
a. tangibility c. human capital
b. desirability d. enterprise
c. utility a 37. Total wealth is a _______concept; total
d. satisfying income is a _______ concept.
b 31. Economists divide productive resources a. stock; flow
into which of the following four broad b. stock; stock
categories? c. flow; stock
a. land, labor, money, enterprise d. flow; flow
b. land, labor, capital, enterprise
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