Microeconomics Principles and Policy 13th Edition by William J. Baumol - Test Bank

,True / False

1. Both parties gain in a voluntary exchange.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: DISC: Scarcity, tradeoffs, and o - DISC: Scarcity, tradeoffs, and opportunity
cost
NATIONAL STANDARDS: United States - BPROG: Analytic
ACCREDITING STANDARDS: The study of economics, and defi - The study of economics, and definitions of
economics
TOPICS: DISC: Gains from trade, specialization and trade
KEYWORDS: BLOOM'S: Knowledge

2. Even though international trade in undertaken voluntarily, a country that engages in trade may not benefit from it.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: DISC: Scarcity, tradeoffs, and o - DISC: Scarcity, tradeoffs, and opportunity
cost
NATIONAL STANDARDS: United States - BPROG: Analytic
ACCREDITING STANDARDS: The study of economics, and defi - The study of economics, and definitions of
economics
TOPICS: DISC: Gains from trade, specialization and trade
KEYWORDS: BLOOM's: Knowledge

3. In international trade, one country's gain is another country's loss.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: DISC: Scarcity, tradeoffs, and o - DISC: Scarcity, tradeoffs, and opportunity
cost
NATIONAL STANDARDS: United States - BPROG: Analytic
ACCREDITING STANDARDS: The study of economics, and defi - The study of economics, and definitions of
economics
TOPICS: DISC: Gains from trade, specialization and trade
KEYWORDS: BLOOM’S: Comprehension

4. It is impossible for both nations to gain when trading with one other.

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, a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: DISC: Scarcity, tradeoffs, and o - DISC: Scarcity, tradeoffs, and opportunity
cost
NATIONAL STANDARDS: United States - BPROG: Analytic
ACCREDITING STANDARDS: The study of economics, and defi - The study of economics, and definitions of
economics
TOPICS: DISC: Gains from trade, specialization and trade
KEYWORDS: BLOOM’S: Comprehension

5. In economics the true cost of making a choice is the value of what must be given up.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: DISC: Scarcity, tradeoffs, and o - DISC: Scarcity, tradeoffs, and opportunity
cost
NATIONAL STANDARDS: United States - BPROG: Analytic
ACCREDITING STANDARDS: The study of economics, and defi - The study of economics, and definitions of
economics
TOPICS: DISC: Gains from trade, specialization and trade
KEYWORDS: BLOOM’S: Comprehension

6. Opportunity cost is the value of the next best alternative to a given choice.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: DISC: Scarcity, tradeoffs, and o - DISC: Scarcity, tradeoffs, and opportunity
cost
NATIONAL STANDARDS: United States - BPROG: Analytic
ACCREDITING STANDARDS: The study of economics, and defi - The study of economics, and definitions of
economics
TOPICS: DISC: Scarcity, tradeoffs, and opportunity cost
KEYWORDS: BLOOM’S: Comprehension

7. Opportunity cost is the highest possible price you can receive when you sell an object.
a. True
b. False
ANSWER: False

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
with a certain product or service or otherwise on a password-protected website for classroom use.

, POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: DISC: Scarcity, tradeoffs, and o - DISC: Scarcity, tradeoffs, and opportunity
cost
NATIONAL STANDARDS: United States - BPROG: Analytic
ACCREDITING STANDARDS: The study of economics, and defi - The study of economics, and definitions of
economics
TOPICS: DISC: Scarcity, tradeoffs, and opportunity cost
KEYWORDS: BLOOM’S: Comprehension

8. As a student, one of the costs of sleeping in rather than going to class is likely to be a lower grade in the class.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: DISC: Scarcity, tradeoffs, and o - DISC: Scarcity, tradeoffs, and opportunity
cost
NATIONAL STANDARDS: United States - BPROG: Analytic
ACCREDITING STANDARDS: The study of economics, and defi - The study of economics, and definitions of
economics
TOPICS: DISC: Scarcity, tradeoffs, and opportunity cost
KEYWORDS: BLOOM’S: Comprehension

9. In her calculation of the cost of going to college, an economist would include the amount of forgone earnings over the
years spent at college.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: DISC: Scarcity, tradeoffs, and o - DISC: Scarcity, tradeoffs, and opportunity
cost
NATIONAL STANDARDS: United States - BPROG: Analytic
ACCREDITING STANDARDS: The study of economics, and defi - The study of economics, and definitions of
economics
TOPICS: Ideas for Beyond the Final Exam
KEYWORDS: BLOOM’S: Comprehension

10. Government controls over market prices frequently "backfire."
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy


© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
with a certain product or service or otherwise on a password-protected website for classroom use.