Test Bank For ECON MICRO 7th Edition by William A. McEachern||ISBN:9780357901960

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Complete Test Bank-ECON MICRO
7th Edition
by William A. McEachern & Veronika
Dolar
Latest| All Chapters| A+ Answers
M
ED
ST
U
D
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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
M
b. False

ANSWER: True
ED

3. In economics, money is an example of capital.

a. True

b. False
ST
ANSWER: False



4. Profit is the payment received by resource owners for the use of their capital.
U
a. True

b. False
D

ANSWER: False
Y

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.
M
a. True

b. False
ED
ANSWER: False



9. Considering both product markets and resource markets, most economic decision makers participate in
the economy as both buyers and sellers.
ST
a. True

b. False

ANSWER: True
U

10. Labor and capital are exchanged in the resource market.
D
a. True
Y
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
M
b. False

ANSWER: True
ED
14. It is always rational to acquire more information before making a decision.

a. True

b. False
ST
ANSWER: False



15. Rational self-interest is equivalent to pure selfishness.
U
a. True

b. False
D
ANSWER: False
Y
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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