Complete Test Bank-
t t
ECON MICRO 7th Edition
t t t
by William A. McEachern & Veronika Do
t t t t t t
lar
Latest| All Chapters| A+ Answers
t t t t
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
2
,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
3
, 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
4
t t
ECON MICRO 7th Edition
t t t
by William A. McEachern & Veronika Do
t t t t t t
lar
Latest| All Chapters| A+ Answers
t t t t
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
2
,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
3
, 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
4
