MEDSTUDY.COM
Complete Test Bank-ECON MICRO
7th Edition
by William A. McEachern & Veronika
Dolar
Latest| All Chapters| A+ Answers
M
ED
ST
U
D
Y
1
,MEDSTUDY.COM
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
2
,MEDSTUDY.COM
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
3
, MEDSTUDY.COM
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
4
Complete Test Bank-ECON MICRO
7th Edition
by William A. McEachern & Veronika
Dolar
Latest| All Chapters| A+ Answers
M
ED
ST
U
D
Y
1
,MEDSTUDY.COM
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
2
,MEDSTUDY.COM
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
3
, MEDSTUDY.COM
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
4
