1
, True / False st st
1. Economics is best defined as the study of how individuals decide to use limited resources in an attempt t
st st st st st st st st st st st st st st st st st st
o satisfy unlimited wants.
st st st
a. True
b. False
ANSWER: True
2. Economics studies how decision makers use scarce resources to satisfy unlimited wants.
st st st st st st st st st st st
a. True
b. False
ANSWER: True
3. In economics, money is an example of capital.
st st st st st st st
a. True
b. False
ANSWER: False
4. Profit is the payment received by resource owners for the use of their capital.
st st st st st st st st st st st st st
a. True
b. False
ANSWER: False
5. Rent is the payment received by resource owners for the use of their natural resources.
st st st st st st st st st st st st st st
a. True
b. False
ANSWER: True
6. An economist would classify 100 shares of the Apple Computers stock as capital.
st st st st st st st st st st st st
a. True
2
,b. False
ANSWER: False
7. Profit is the payment made for land resources.
st st st st st st st
a. True
b. False
ANSWER: False
8. Resources are used only in the production of goods, not services.
st st st st st st st st st st
a. True
b. False
ANSWER: False
9. Considering both product markets and resource markets, most economic decision makers participate in
st st st st st st st st st st st st st
the economy as both buyers and sellers.
st st st st st st
a. True
b. False
ANSWER: True
10. Labor and capital are exchanged in the resource market.
st st st st st st st st
a. True
b. False
ANSWER: True
11. A rational individual gives more to charity when such contributions receive favorable tax treatment.
st st st st st st st st st st st st st
a. True
b. False
ANSWER: True
3
, 12. A rational individual would make charitable contributions only if such contributions receive favorable t
st st st st st st st st st st st st st
ax treatment.
st
a. True
b. False
ANSWER: False
13. The assumption of rational self-
st st st st
interest does not rule out the possibility of concern for other individuals.
st st st st st st st st st st st
a. True
b. False
ANSWER: True
14. It is always rational to acquire more information before making a decision.
st st st st st st st st st st st
a. True
b. False
ANSWER: False
15. Rational self-interest is equivalent to pure selfishness.
st st st st st st
a. True
b. False
ANSWER: False
16. Sara is considering the purchase of a new car. Rational self-
st st st st st st st st st st
interest demands that she do an exhaustive research study to acquire every bit of information possible abo
st st st st st st st st st st st st st st st st
ut her potential options.
st st st
a. True
b. False
ANSWER: False
17. A marginal adjustment only refers to a minor change.
st st st st st st st st
a. True
4
, True / False st st
1. Economics is best defined as the study of how individuals decide to use limited resources in an attempt t
st st st st st st st st st st st st st st st st st st
o satisfy unlimited wants.
st st st
a. True
b. False
ANSWER: True
2. Economics studies how decision makers use scarce resources to satisfy unlimited wants.
st st st st st st st st st st st
a. True
b. False
ANSWER: True
3. In economics, money is an example of capital.
st st st st st st st
a. True
b. False
ANSWER: False
4. Profit is the payment received by resource owners for the use of their capital.
st st st st st st st st st st st st st
a. True
b. False
ANSWER: False
5. Rent is the payment received by resource owners for the use of their natural resources.
st st st st st st st st st st st st st st
a. True
b. False
ANSWER: True
6. An economist would classify 100 shares of the Apple Computers stock as capital.
st st st st st st st st st st st st
a. True
2
,b. False
ANSWER: False
7. Profit is the payment made for land resources.
st st st st st st st
a. True
b. False
ANSWER: False
8. Resources are used only in the production of goods, not services.
st st st st st st st st st st
a. True
b. False
ANSWER: False
9. Considering both product markets and resource markets, most economic decision makers participate in
st st st st st st st st st st st st st
the economy as both buyers and sellers.
st st st st st st
a. True
b. False
ANSWER: True
10. Labor and capital are exchanged in the resource market.
st st st st st st st st
a. True
b. False
ANSWER: True
11. A rational individual gives more to charity when such contributions receive favorable tax treatment.
st st st st st st st st st st st st st
a. True
b. False
ANSWER: True
3
, 12. A rational individual would make charitable contributions only if such contributions receive favorable t
st st st st st st st st st st st st st
ax treatment.
st
a. True
b. False
ANSWER: False
13. The assumption of rational self-
st st st st
interest does not rule out the possibility of concern for other individuals.
st st st st st st st st st st st
a. True
b. False
ANSWER: True
14. It is always rational to acquire more information before making a decision.
st st st st st st st st st st st
a. True
b. False
ANSWER: False
15. Rational self-interest is equivalent to pure selfishness.
st st st st st st
a. True
b. False
ANSWER: False
16. Sara is considering the purchase of a new car. Rational self-
st st st st st st st st st st
interest demands that she do an exhaustive research study to acquire every bit of information possible abo
st st st st st st st st st st st st st st st st
ut her potential options.
st st st
a. True
b. False
ANSWER: False
17. A marginal adjustment only refers to a minor change.
st st st st st st st st
a. True
4
