【正文】 s members.d.society is getting the maximum benefits from its scarce resources.ANS: D DIF: 1 REF: 11NAT: Analytic LOC: Efficiency and equity TOP: EfficiencyMSC: Definitional12. The terms equality and efficiency are similar in that they both refer to benefits to society. However they are different in thata.equality refers to uniform distribution of those benefits and efficiency refers to maximizing benefits from scarce resources.b.equality refers to maximizing benefits from scarce resources and efficiency refers to uniform distribution of those benefits.c.equality refers to everyone facing identical tradeoffs and efficiency refers to the opportunity cost of the benefits.d.equality refers to the opportunity cost of the benefits and efficiency refers to everyone facing identical tradeoffs.ANS: A DIF: 2 REF: 11NAT: Analytic LOC: Efficiency and equity TOP: Efficiency | EqualityMSC: Definitional13. Which of the following phrases best captures the notion of efficiency?a.absolute fairnessb.equal distributionc.minimum wasted.equitable outeANS: C DIF: 1 REF: 11NAT: Analytic LOC: Efficiency and equity TOP: EfficiencyMSC: Interpretive14. Which of the following words and phrases best captures the notion of equality?a.minimum wasteb.maximum benefitc.samenessd.efficiencyANS: C DIF: 1 REF: 11NAT: Analytic LOC: Efficiency and equity TOP: EqualityMSC: Definitional15. A typical society strives to get the most it can from its scarce resources. At the same time, the society attempts to distribute the benefits of those resources to the members of the society in a fair manner. In other words, the society faces a tradeoff betweena.guns and butter.b.efficiency and equality.c.inflation and unemployment.d.work and leisure.ANS: B DIF: 1 REF: 11NAT: Analytic LOC: Efficiency and equity TOP: Efficiency | EqualityMSC: Interpretive16. Which of the following is true?a.Efficiency refers to the size of the economic pie。s members.c.society39。s resources are used efficiently.ANS: A DIF: 2 REF: 11NAT: Analytic LOC: Efficiency and equity TOP: EqualityMSC: Interpretive11. Efficiency means thata.society is conserving resources in order to save them for the future.b.society39。s economies experience scarcity?a.25%b.50%c.75%d.100%ANS: D DIF: 1 REF: 10NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost TOP: Scarcity MSC: Interpretive10. When a society cannot produce all the goods and services people wish to have, it is said that the economy is experiencinga.scarcity.b.surpluses.c.inefficiencies.d.inequalities.ANS: A DIF: 2 REF: 10NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost TOP: Scarcity MSC: Interpretive11. Which of the following products would be considered scarce?a.golf clubsb.Picasso paintingsc.applesd.All of the above are correct.ANS: D DIF: 2 REF: 10NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost TOP: Scarcity MSC: Interpretive12. Economics is the study ofa.production methods.b.how society manages its scarce resources.c.how households decide who performs which tasks.d.the interaction of business and government.ANS: B DIF: 1 REF: 10NAT: Analytic LOC: The Study of economics, and definitions in economicsTOP: Economies | Scarcity MSC: Definitional13. In most societies, resources are allocated bya.a single central planner.b.a small number of central planners.c.those firms that use resources to provide goods and services.d.the bined actions of millions of households and firms.ANS: D DIF: 1 REF: 10NAT: Analytic LOC: The Study of economics, and definitions in economicsTOP: Resource allocation MSC: InterpretiveMultiple ChoiceSec01How People Make DecisionsMULTIPLE CHOICE1. The adage, There is no such thing as a free lunch, meansa.even people on welfare have to pay for food.b.the cost of living is always increasing.c.people face tradeoffs.d.all costs are included in the price of a product.ANS: C DIF: 1 REF: 11NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost TOP: Tradeoffs MSC: Definitional2. The adage, There is no such thing as a free lunch, is used to illustrate the principle thata.goods are scarce.b.people face tradeoffs.c.ine must be earned.d.households face many decisions.ANS: B DIF: 2 REF: 11NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost TOP: Tradeoffs MSC: Interpretive3. Which of the following statements best represents the principle represented by the adage, There is no such thing as a free lunch?a.Melissa can attend the concert only if she takes her sister with her.b.Greg is hungry and homeless.c.Brian must repair the tire on his bike before he can ride it to class.d.Kendra must decide between going to Colorado or Cancun for spring break.ANS: D DIF: 3 REF: 11NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost TOP: Tradeoffs MSC: Applicative4. The principle that people face tradeoffs applies toa.individuals.b.families.c.societies.d.All of the above are correct.ANS: D DIF: 1 REF: 11NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost TOP: Tradeoffs MSC: Applicative5. Sophia is planning her activities for a hot summer day. She would like to go to the local swimming pool and see the latest blockbuster movie, but because she can only get tickets to the movie for the same time that the pool is open she can only choose one activity. This illustrates the basic principle thata.people respond to incentives.b.rational people think at the margin.c.people face tradeoffs.d.improvements in efficiency sometimes e at the expense of equality.ANS: C DIF: 1 REF: 11NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost TOP: Tradeoffs MSC: Interp