Principles of Microeconomics, 9e - Test Item File 1 (Case/Fair/Oster)

Chapter 2The Economic Problem: Scarcity and Choice

2.1

Scarcity, Choice, and Opportunity Cost

1

Multiple Choice

1)

The process by which resources are transformed into useful forms is

A)

capitalization.

B)

consumption.

C)

production.

D)

allocation.

Answer:

C

Diff: 2

Topic:

Scarcity, Choice, and Opportunity Cost

Skill:

Definition

2)

Outputs in the production process are

A)

pollution.

B)

money.

C)

good and services of value to households.

D)

resources.

Answer:

C

Diff: 2

Topic:

Scarcity, Choice, and Opportunity Cost

Skill:

Definition

3)

Which of the following is NOT a resource as the term is used by economists?

A)

land

B)

labor

C)

buildings

D)...