, ______________________________________________________________________________________________
Test Bank - Economics, 13th Edition (Arnold, 2019)
Chapter 01 - What Economics Is About
True / False
1. The branch of economics that studies the decisions made by individuals and firms is called macroeconomics.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: The study of economics and - DISC: The study of
economics and definitions of economics
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/20/2017 10:55 AM
2. Macroeconomics deals with issues involving large corporations, while microeconomics exclusively deals with issues
involving small businesses.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: The study of economics and - DISC: The study of
economics and definitions of economics
KEYWORDS: Bloom's: Comprehension
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/20/2017 10:55 AM
3. The effect of a decrease in interest rates upon economic growth is an example of positive economics.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: The study of economics and - DISC: The study of
economics and definitions of economics
KEYWORDS: Bloom's: Comprehension
DATE CREATED: 7/20/2017 10:55 AM
______________________________________________________________________________________________
1|Page
, ______________________________________________________________________________________________
Test Bank - Economics, 13th Edition (Arnold, 2019)
Chapter 01 - What Economics Is About
DATE MODIFIED: 7/20/2017 10:55 AM
4. Economists use the word utility to describe the satisfaction one receives from a good.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: Utility and consumer choic - DISC: Utility and
consumer choice
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/20/2017 10:55 AM
5. If variable X rises as a result of variable Y falling, then X and Y have an inverse relationship.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: Reading and interpreting g - DISC: Reading and
interpreting graphs
KEYWORDS: Bloom's: Comprehension
OTHER: Appendix A
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/20/2017 10:55 AM
6. In the textbook, economics is defined as the "science of scarcity."
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: Scarcity, tradeoffs, and o - DISC: Scarcity,
tradeoffs, and opportunity cost
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
______________________________________________________________________________________________
2|Page
, ______________________________________________________________________________________________
Test Bank - Economics, 13th Edition (Arnold, 2019)
Chapter 01 - What Economics Is About
DATE MODIFIED: 7/27/2017 6:02 PM
7. In economics, capital is defined as a financial asset such as stocks and bonds.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: The study of economics and - DISC: The study of
economics and definitions of economics
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/27/2017 6:03 PM
8. A rationing device is a method used to resolve who gets what of available goods and resources.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: Scarcity, tradeoffs, and o - DISC: Scarcity,
tradeoffs, and opportunity cost
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/20/2017 10:55 AM
9. When a person is making a decision at the margin he or she is comparing the total benefits from that activity to the total
costs of the proposed action.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: Marginal costs & benefits
KEYWORDS: Bloom's: Knowledge
NOTES: New
DATE CREATED: 7/20/2017 10:55 AM
______________________________________________________________________________________________
3|Page
Test Bank - Economics, 13th Edition (Arnold, 2019)
Chapter 01 - What Economics Is About
True / False
1. The branch of economics that studies the decisions made by individuals and firms is called macroeconomics.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: The study of economics and - DISC: The study of
economics and definitions of economics
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/20/2017 10:55 AM
2. Macroeconomics deals with issues involving large corporations, while microeconomics exclusively deals with issues
involving small businesses.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: The study of economics and - DISC: The study of
economics and definitions of economics
KEYWORDS: Bloom's: Comprehension
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/20/2017 10:55 AM
3. The effect of a decrease in interest rates upon economic growth is an example of positive economics.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: The study of economics and - DISC: The study of
economics and definitions of economics
KEYWORDS: Bloom's: Comprehension
DATE CREATED: 7/20/2017 10:55 AM
______________________________________________________________________________________________
1|Page
, ______________________________________________________________________________________________
Test Bank - Economics, 13th Edition (Arnold, 2019)
Chapter 01 - What Economics Is About
DATE MODIFIED: 7/20/2017 10:55 AM
4. Economists use the word utility to describe the satisfaction one receives from a good.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: Utility and consumer choic - DISC: Utility and
consumer choice
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/20/2017 10:55 AM
5. If variable X rises as a result of variable Y falling, then X and Y have an inverse relationship.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: Reading and interpreting g - DISC: Reading and
interpreting graphs
KEYWORDS: Bloom's: Comprehension
OTHER: Appendix A
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/20/2017 10:55 AM
6. In the textbook, economics is defined as the "science of scarcity."
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: Scarcity, tradeoffs, and o - DISC: Scarcity,
tradeoffs, and opportunity cost
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
______________________________________________________________________________________________
2|Page
, ______________________________________________________________________________________________
Test Bank - Economics, 13th Edition (Arnold, 2019)
Chapter 01 - What Economics Is About
DATE MODIFIED: 7/27/2017 6:02 PM
7. In economics, capital is defined as a financial asset such as stocks and bonds.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: The study of economics and - DISC: The study of
economics and definitions of economics
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/27/2017 6:03 PM
8. A rationing device is a method used to resolve who gets what of available goods and resources.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: Scarcity, tradeoffs, and o - DISC: Scarcity,
tradeoffs, and opportunity cost
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/20/2017 10:55 AM
9. When a person is making a decision at the margin he or she is comparing the total benefits from that activity to the total
costs of the proposed action.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: Marginal costs & benefits
KEYWORDS: Bloom's: Knowledge
NOTES: New
DATE CREATED: 7/20/2017 10:55 AM
______________________________________________________________________________________________
3|Page
