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ECON MICRO 7th Edition
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by William A. McEachern & Veronika Do
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lar
Latest| All Chapters| A+ Answers
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1
, Truet/tFalse
1. Economicstistbesttdefinedtastthetstudytofthowtindividualstdecidettotusetlimitedtresourcestintantattemptttotsat
isfytunlimitedtwants.
a. True
b. False
ANSWER: True
2. Economicststudiesthowtdecisiontmakerstusetscarcetresourcesttotsatisfytunlimitedtwants.
a. True
b. False
ANSWER: True
3. Inteconomics,tmoneytistantexampletoftcapital.
a. True
b. False
ANSWER: False
4. Profittistthetpaymenttreceivedtbytresourcetownerstfortthetusetofttheirtcapital.
a. True
b. False
ANSWER: False
5. Renttistthetpaymenttreceivedtbytresourcetownerstfortthetusetofttheirtnaturaltresources.
a. True
b. False
ANSWER: True
6. Anteconomisttwouldtclassifyt100tsharestoftthetAppletComputerststocktastcapital.
a. True
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,b. False
ANSWER: False
7. Profittistthetpaymenttmadetfortlandtresources.
a. True
b. False
ANSWER: False
8. Resourcestaretusedtonlytintthetproductiontoftgoods,tnottservices.
a. True
b. False
ANSWER: False
9. Consideringtbothtproducttmarketstandtresourcetmarkets,tmostteconomictdecisiontmakerstparticipatetintthet
economytastbothtbuyerstandtsellers.
a. True
b. False
ANSWER: True
10. Labortandtcapitaltaretexchangedtintthetresourcetmarket.
a. True
b. False
ANSWER: True
11. Atrationaltindividualtgivestmorettotcharitytwhentsuchtcontributionstreceivetfavorablettaxttreatment.
a. True
b. False
ANSWER: True
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, 12. Atrationaltindividualtwouldtmaketcharitabletcontributionstonlytiftsuchtcontributionstreceivetfavorablettaxt
treatment.
a. True
b. False
ANSWER: False
13. Thetassumptiontoftrationaltself-
interesttdoestnottruletouttthetpossibilitytoftconcerntfortothertindividuals.
a. True
b. False
ANSWER: True
14. Ittistalwaystrationalttotacquiretmoretinformationtbeforetmakingtatdecision.
a. True
b. False
ANSWER: False
15. Rationaltself-interesttistequivalentttotpuretselfishness.
a. True
b. False
ANSWER: False
16. Saratistconsideringtthetpurchasetoftatnewtcar.tRationaltself-
interesttdemandstthattshetdotantexhaustivetresearchtstudyttotacquireteverytbittoftinformationtpossibletaboutther
tpotentialtoptions.
a. True
b. False
ANSWER: False
17. Atmarginaltadjustmenttonlytrefersttotatminortchange.
a. True
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