TEST BANK FOR MACROECONOMICS IN MODULES, 3EDITION BY PAUL KRUGMAN, ROBIN WELLS

Chapter 1 1. Scarcity in economics means: *a. we do not have sufficient resources to produce all the goods and services we want. b. the wants of people are limited. c. there must be poor people in rich countries. d. shortages exist in nearly all markets. 2. If resources are “scarce,” it means that they: *a. cannot provide enough goods or services to satisfy all human material wants and needs. b. have no opportunity cost. c. are probably not valued by consumers. d. have an unlimited supply. 3. A key theme fundamental to all of economics is that: a. there are limited wants. b. we are a rich country but are simply not aware of it. *c. people have unlimited wants but face limited means to satisfy them. d. there are unlimited resources. 4. The problem of scarcity is confronted by: a. industrialized societies only. b. preindustrialized societies only. c. societies governed by communist philosophies only. *d. all societies. 5. When we are forced to make choices, we are facing the concept of: a. human capital. b. inflation. *c. scarcity. d. economic aggregates. 6. We are forced to make choices because of: