Chapter 01 Test Bank KEY
1. Because resources are scarce relative to human wants, economics is best described as
2. Labor economics is studied as a distinct subfield of economics because
3. The bulk of national income flows to
4. As distinct from product market transactions, labor market transactions are unique in that
5. The concept of demand must be modified when applied to labor markets to reflect the fact that
6. The “old” view of labor economics stresses _____, while the “new” view focuses upon _____.
7. Because scarcity forces people to make purposeful choices, labor market participants
8. The three basic characteristics of the economic perspective are
9. Which one of the following topics is most suited to macroeconomic analysis?
10. Which one of the following topics is most suited to microeconomic analysis?
11. Nobel Laureate Gary Becker is known for economic theories in all of the following areas except
12. Nobel Laureate Gary Becker’s basic professional contribution is his
13. According to a newspaper account from Washington State, lottery winners in that state
Chapter 01 Test Bank Summary
Category
# of Questi
ons
AACSB: Reflective Thinking
13
Accessibility: Keyboard Navigation
13
Blooms: Remember
11
Blooms: Understand
2
Difficulty: 1 Easy
11
Difficulty: 2 Medium
2
Learning Objective: 01–01 Explain why labor economics is justified as a special field of inquiry.
6
Learning Objective: 01–
02 Describe how the economic perspective can be applied to analysis of labor markets.
3
Learning Objective: 01–
03 Identify those topics in labor economics that are mainly “microeconomic” and those that are primaril
y “macroeconomic.
4
Topic: Economic Perspective
2
Topic: Labor Economics as a Discipline
5
Topic: Overview
5
Topic: The “Old” and the “New”
1