Test Bank for ECON MICRO, 7th Edition by William A. McEachern|9780357901960| All Chapters| LATEST

TEST BANK
ECON MICRO




1

, True / False
1. Economics Is Best Defined As The Study Of How Individuals Decide To Use Limited Resources In
An Attempt To Satisfy Unlimited Wants.

a. True

b. False

ANSWER: True



2. Economics Studies How Decision Makers Use Scarce Resources To Satisfy Unlimited Wants.

a. True

b. False

ANSWER: True



3. In Economics, Money Is An Example Of Capital.

a. True

b. False

ANSWER: False



4. Profit Is The Payment Received By Resource Owners For The Use Of Their Capital.

a. True

b. False

ANSWER: False



5. Rent Is The Payment Received By Resource Owners For The Use Of Their Natural Resources.

a. True

b. False

ANSWER: True



6. An Economist Would Classify 100 Shares Of The Apple Computers Stock As Capital.

a. True


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,b. False

ANSWER: False



7. Profit Is The Payment Made For Land Resources.

a. True

b. False

ANSWER: False



8. Resources Are Used Only In The Production Of Goods, Not Services.

a. True

b. False

ANSWER: False



9. Considering Both Product Markets And Resource Markets, Most Economic Decision Makers
Participate In The Economy As Both Buyers And Sellers.

a. True

b. False

ANSWER: True



10. Labor And Capital Are Exchanged In The Resource Market.

a. True

b. False

ANSWER: True



11. A Rational Individual Gives More To Charity When Such Contributions Receive Favorable Tax
Treatment.

a. True

b. False

ANSWER: True



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, 12. A Rational Individual Would Make Charitable Contributions Only If Such Contributions Receive
Favorable Tax Treatment.

a. True

b. False

ANSWER: False



13. The Assumption Of Rational Self-Interest Does Not Rule Out The Possibility Of Concern
For Other Individuals.

a. True

b. False

ANSWER: True



14. It Is Always Rational To Acquire More Information Before Making A Decision.

a. True

b. False

ANSWER: False



15. Rational Self-Interest Is Equivalent To Pure Selfishness.

a. True

b. False

ANSWER: False



16. Sara Is Considering The Purchase Of A New Car. Rational Self-Interest Demands That She Do An
Exhaustive Research Study To Acquire Every Bit Of Information Possible About Her Potential Options.

a. True

b. False

ANSWER: False



17. A Marginal Adjustment Only Refers To A Minor Change.

a. True

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