Economics Today 19th Edition by Roger LeRoy Miller Test Bank

ISBN-13 : 9780134641713

Economics Today: The Macro View, 19e (Miller)

Chapter 1   The Nature of Economics

1.1   The Power of Economic Analysis

1) The economic way of thinking will help you

1. A) make decisions in financing your home.
2. B) analyze solutions to economic problems.
3. C) make better decisions concerning your education.
4. D) all of the above

Answer:  D

Diff: 1

Topic:  1.1 The Power of Economic Analysis

Learning Outcome:  Micro-1: Identify the basic principles of economics and explain how to think like an economist

AACSB:  Analytical thinking

2) Economic analysis is used

1. A) only by instructors and students in economics to understand the world.
2. B) only by business people to raise profits.
3. C) only by policy makers to make policy decisions.
4. D) in all decision making.

Answer:  D

Diff: 1

Topic:  1.1 The Power of Economic Analysis

Learning Outcome:  Micro-1: Identify the basic principles of economics and explain how to think like an economist

AACSB:  Analytical thinking

3) Economic analysis is a tool that

1. A) aids all decision making.
2. B) helps us understand why people make mistakes.
3. C) helps us forgive selfish people.
4. D) makes everyone rich.

Answer:  A

Diff: 1

Topic:  1.1 The Power of Economic Analysis

Learning Outcome:  Micro-1: Identify the basic principles of economics and explain how to think like an economist

AACSB:  Analytical thinking

4) Economics is best defined as the

1. A) study of how people make choices to satisfy their wants.
2. B) study of individual self-interests.
3. C) study of why people do not react to incentives.
4. D) process by which goods are sold in free markets.

Answer:  A

Diff: 1

Topic:  1.1 The Power of Economic Analysis

Learning Outcome:  Micro-1: Identify the basic principles of economics and explain how to think like an economist

AACSB:  Analytical thinking

5) Economics can be described as the study of how people use ________ resources to satisfy ________ wants.

1. A) unlimited; unlimited
2. B) unlimited; limited
3. C) limited; unlimited
4. D) limited; limited

Answer:  C

Diff: 1

Topic:  1.1 The Power of Economic Analysis

Learning Outcome:  Micro-1: Identify the basic principles of economics and explain how to think like an economist

AACSB:  Analytical thinking