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
2
,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
3
, 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
4
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
2
,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
3
, 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
4
