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1、Chapter01ThinkingLikeAnEconomist MultipleChoiceQuestions 1. Economicsisbestdefinedasthestudyof: A. pricesandquantities.B. inflationandinterestrates.C. howpeoplemakechoicesundertheconditionsofscarcityandtheresultsofthosechoices.D. wagesandincomes. 2.
2、Economicquestionsalwaysdealwith: A. financialmatters.B. politicalmatters.C. insufficientresources.D. choiceinthefaceoflimitedresources. 3. Therangeoftopicsorissuesthatfitwithinthedefinitionofeconomicsis: A. limitedtomarketactivities,e.g.,buyingsoap.B
3、. limitedtoindividualsandfirms.C. extremelywide,requiringonlytheideasofchoiceandscarcity.D. verylimited. 4. Thecentralconcernofeconomicsis: A. poverty.B. scarcity.C. wealthaccumulation.D. overconsumption. 5. Thescarcityprincipleindicatesthat: A. noma
4、tterhowmuchonehas,itisneverenough.B. comparedto100yearsago,individualshavelesstimetoday.C. withlimitedresources,havingmoreof"this"meanshavinglessof"that."D. becausetradeoffsmustbemade,resourcesarethereforescarce.8. Theprincipleofscarcityappliesto: A.
5、 thepoorexclusively.B. allconsumers.C. allfirms.D. everyone—consumers,firms,governments,andnations.11. Thescarcityprincipleappliesto: A. alldecisions.B. onlymarketdecisions,e.g.,buyingacar.C. onlynon-marketdecisions,e.g.,watchingasunset.D. onlythepoo
6、r.14. WhetherstudyingthesizeoftheU.S.economyorthenumberofchildrenacouplewillchoosetohave,theunifyingconceptisthatwantsare: A. limited,resourcesarelimited,andthuschoicesmustbemade.B. unlimited,resourcesarelimited,andthuschoicesmustbemade.C. unlimited,
7、resourcesarelimitedtosomebutnottoothers,andthussomepeoplemustmakechoices.D. unlimited,resourcesarelimited,andthusgovernmentneedstodomore. 15. Thecost-benefitprincipleindicatesthatanactionshouldbetaken: A. ifthetotalbenefitsexceedthetotalcosts.B. ifth
8、eaveragebenefitsexceedtheaveragecosts.C. ifthenetbenefit(benefitminuscost)iszero.D. iftheextrabenefitisgreaterthanorequaltotheextracosts. 16. Whenapersondecidestopursueanactivityaslongastheextrabenefitsareatleastequaltotheextracosts,thatpersonis: A.
