TEST BANK FOR ECON MICRO 7th Edition by William A. McEachern, Veronika Dolar ISBN: 978-0357901960 COMPLETE GUIDE ALL CHAPTERS COVERED 100% VERIFIED A+ GRADE ASSURED!!!!!NEW LATEST UPDATE!!!!

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1. Economics is best defined as the study of how individuals decide to use limited resources in an attempt to
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satisfy unlimited wants.
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a. True

b. False

ANSWER: True



2. Economics studies how decision makers use scarce resources to satisfy unlimited wants.
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a. True

b. False

ANSWER: True



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

b. False

ANSWER: False



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

b. False

ANSWER: False



5. Rent is the payment received by resource owners for the use of their natural resources.
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a. True

b. False

ANSWER: True



6. An economist would classify 100 shares of the Apple Computers stock as capital.
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a. True


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,b. False

ANSWER: False



7. Profit is the payment made for land resources.
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a. True

b. False

ANSWER: False



8. Resources are used only in the production of goods, not services.
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a. True

b. False

ANSWER: False



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

b. False

ANSWER: True



10. Labor and capital are exchanged in the resource market.
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a. True

b. False

ANSWER: True



11. A rational individual gives more to charity when such contributions receive favorable tax treatment.
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a. True

b. False

ANSWER: True




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, 12. A rational individual would make charitable contributions only if such contributions receive favorable t
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ax treatment.
dt




a. True

b. False

ANSWER: False



13. The assumption of rational self-
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interest does not rule out the possibility of concern for other individuals.
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a. True

b. False

ANSWER: True



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

b. False

ANSWER: False



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

b. False

ANSWER: False



16. Sara is considering the purchase of a new car. Rational self-
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interest demands that she do an exhaustive research study to acquire every bit of information possible about
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her potential options.
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a. True

b. False

ANSWER: False



17. A marginal adjustment only refers to a minor change.
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a. True
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