Test Bank of Econ
Chapter 1 Introduction
Multiple-Choice Questions
1) The best definition of economics is
A) how choices are made under conditions of scarcity. B) how money is used. C) how goods and services are produced. D) how businesses maximize profits.
Answer: A
Level of Difficulty: Easy
2) Managerial economics is best defined as the economic study of
A) how businesses can make the most profits. B) how businesses can decide on the best use of scarce resources. C) how businesses can operate at the lowest costs. D) how businesses can sell the most products.
Answer: B
Level of Difficulty: Easy
3) Managerial economics is best defined as
A) the study of economics by managers. B) the study of the aggregate economic activity. C) the study of how managers make decisions about the use of scarce resources. D) All of the above are good definitions.
Answer: C
Level of Difficulty: Easy
4) Scarcity is a condition that exists when
A) there is a fixed supply of resources. B) there is a large demand for a product. C) resources are not able to meet the entire demand for a product. D) All of the above.
Answer: C
Level of Difficulty: Easy
5) Which of the statements below best illustrates the use of the market process in determining the allocation of scarce resources?
A) "Let's make this product because this is what we know how to do best." B) "Although we're currently making a profit on the products we make, we should consider shifting to products where we can earn even more money." C) "Everyone is opening video stores, why don't we?" D) "We can't stop making this product. This product gave our company its start."
Answer: B Level of Difficulty: Moderate
6) Which of the following is not considered as a factor of production?
A) money B) machinery and equipment C) land D) unskilled labor
Answer: A
Level of
Multiple-Choice Questions
1) The best definition of economics is
A) how choices are made under conditions of scarcity. B) how money is used. C) how goods and services are produced. D) how businesses maximize profits.
Answer: A
Level of Difficulty: Easy
2) Managerial economics is best defined as the economic study of
A) how businesses can make the most profits. B) how businesses can decide on the best use of scarce resources. C) how businesses can operate at the lowest costs. D) how businesses can sell the most products.
Answer: B
Level of Difficulty: Easy
3) Managerial economics is best defined as
A) the study of economics by managers. B) the study of the aggregate economic activity. C) the study of how managers make decisions about the use of scarce resources. D) All of the above are good definitions.
Answer: C
Level of Difficulty: Easy
4) Scarcity is a condition that exists when
A) there is a fixed supply of resources. B) there is a large demand for a product. C) resources are not able to meet the entire demand for a product. D) All of the above.
Answer: C
Level of Difficulty: Easy
5) Which of the statements below best illustrates the use of the market process in determining the allocation of scarce resources?
A) "Let's make this product because this is what we know how to do best." B) "Although we're currently making a profit on the products we make, we should consider shifting to products where we can earn even more money." C) "Everyone is opening video stores, why don't we?" D) "We can't stop making this product. This product gave our company its start."
Answer: B Level of Difficulty: Moderate
6) Which of the following is not considered as a factor of production?
A) money B) machinery and equipment C) land D) unskilled labor
Answer: A
Level of