Question Economics Today, 16e (Miller) Chapter 2 Scarcity and the World of Trade-Offs

04 Jun Question Economics Today, 16e (Miller) Chapter 2 Scarcity and the World of Trade-Offs

Question
Economics Today, 16e (Miller)

Chapter 2 Scarcity and the World of Trade-Offs

2.1 Scarcity

1) Scarcity arises because

A) resources are finite and are inadequate to meet all human wants and needs.

B) import taxes depress the rate of growth of goods and services production.

C) international companies are slow to explore for new resources.

D) many countries waste goods because of inefficient political systems.

2) Scarcity refers to

A) the ability of society to employ all of its resources.

B) the ability of society to consume all that it produces.

C) the inability of society to satisfy all human wants because of limited resources.

D) the inability of society to eliminate poverty.

3) Which of the following statements is TRUE about scarcity?

A) Both rich and poor people face the problem of scarcity.

B) Scarcity exists only when supply is insufficient to meet demand.

C) Scarcity exists only when a shortage exists.

D) Scarcity can be eliminated when a country becomes richer.

4) The problem of economic scarcity applies

A) only in industrially developed countries, because resources are scarce in these nations.

B) only in underdeveloped countries, because there are no productive resources in these nations.

C) only in economic systems that are just beginning to develop, because specialized resources are scarce in developing nations.

D) to economic systems in all nations, regardless of their level of development.

5) In every economic system, choices must be made because resources

A) are unlimited, but human desires and wants are limited.

B) are limited, but human desires and wants are unlimited.

C) are unlimited, and so are human desires and wants.

D) are limited, and so are human desires and wants.

6) In the production of goods and services, trade-offs exist because

A) not all production is efficient.

B) society has only a limited amount of productive resources.

C) buyers and sellers often must negotiate prices.

D) human wants and needs are limited at a particular point in time.

7) Which of the following statements about economic scarcity is FALSE?

A) Scarcity occurs among the poor and the rich.

B) Scarcity only occurs if there are shortages and people wait in line to buy things.

C) Scarcity results from not having enough resources to produce all the things we want.

D) Scarcity results in the necessity to make choices.

8) Which of the following statements is FALSE?

A) Economic goods are available in desired quantities at a zero price.

B) A good is anything that gives satisfaction or happiness to individuals.

C) Services are intangible goods such as dry cleaning, hospital care, and restaurant meal preparation.

D) Wants are unlimited and include all material and nonmaterial desires.

9) Which of the following statements about scarcity is TRUE?

A) Scarcity is no longer a problem for industrialized countries.

B) Scarcity exists in all societies.

C) Scarcity is a problem only for greedy people.

D) Scarcity is a problem only in countries that do not use markets to organize economic activity.

10) In 2006, hurricanes damaged many parts of Texas, destroying homes, businesses, schools, and infrastructure. In strictly economic terminology, these hurricanes are said to have caused

A) scarcity, because the damages made food and shelter scarce.

B) scarcity, because some goods were difficult to get.

C) shortages, because supplies were cut off and goods were destroyed.

D) tradeoffs, because some areas of the country were damaged when others were not.

11) Scarcity implies that people must

A) be miserable.

B) be selfish.

C) make choices.

D) not be selfish.

12) Scarcity

A) does not exist in the United States.

B) applies only to developing countries.

C) is caused by production problems.

D) is not a shortage.

13) The difference between scarcity and a shortage is that

A) scarcity is caused by poverty and shortages are caused by natural disasters.

B) shortages are a type of scarcity caused by natural disasters while scarcity is caused by human errors.

C) scarcity always is a part of human life while shortages usually are temporary.

D) shortages are always part of human life while scarcity is usually temporary.

14) Which of the following is the best example of scarcity?

A) The Talking Teddy is a surprise holiday hit, resulting in long lines of consumers trying to purchase the limited number of available Teddies.

B) Fred only gets a 10-hour lunch break and each day must decide between working out at the gym or socializi