Test Bank for Exploring Microeconomics 7th Edition by Sexton.

Test Bank for Exploring Microeconomics 7th Edit




Page 1

,ion by Sexton IBSN 9781285859453
1. Scarcity is a problem faced by all but the wealthiest of citizens.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 37
TOPICS: 2.1 People Face Scarcity and Costly Trade-offs | Does Everyone Face Scarcity?

2. Resources are costly because they have alternative uses.
a. True
b. False
ANSWER: True
POINTS: 1
TOPICS: 2.1 People Face Scarcity and Costly Trade-offs | Does Everyone Face Scarcity?

3. Tractors, shovels, copy machines and computer programming expertise are all
examples of scarce resources.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 36
TOPICS: 2.1 People Face Scarcity and Costly Trade-offs | Scarcity and Resources

4. In order to not face tradeoffs, scarcity would have to be eliminated. a. True
b. False
ANSWER: True
POINTS: 1
TOPICS: 2.1 People Face Scarcity and Costly Trade-offs | Does Everyone Face Scarcity?

5. Human capital consists of computers, tools and equipment owned by private
individuals. a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 36
TOPICS: 2.1 People Face Scarcity and Costly Trade-offs | Scarcity and Resources

6. An entrepreneur organizes the other factors of production and bears the business risk.
a. True
b. False
ANSWER: True
POINTS: 1
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, REFERENCES: p. 36
TOPICS: 2.1 People Face Scarcity and Costly Trade-offs | Scarcity and Resources

7. Everyone faces scarcity.
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a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 37
TOPICS: 2.1 People Face Scarcity and Costly Trade-offs | Does Everyone Face Scarcity?

8. Garbage is scarce because it is abundant.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 37
TOPICS: 2.1 People Face Scarcity and Costly Trade-offs | What Are Goods and Services?

9. If you made a wish list of things you wanted but did not now have, they you became able to have the things on that
list, scarcity would be eliminated.
a. True
b. False
ANSWER: False
POINTS: 1
TOPICS: 2.1 People Face Scarcity and Costly Trade-offs | Does Everyone Face Scarcity?

10. Every choice has a cost
a. True
b. False
ANSWER: True
POINTS: 1
TOPICS: 2.1 People Face Scarcity and Costly Trade-offs | Does Everyone Face Scarcity?

11. A permanent change to a much higher price of gasoline would lead us to expect fewer gas guzzlers on the road,
ceterisparibus.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 44
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, TOPICS: 2.2 People Engage in Rational Decision Making and Marginal Thinking | Many Choices We Face
Involve Marginal Thinking

12. Economists would predict that if salaries increased for engineers and decreased for MBAs, fewer people than before
would go to graduate school in business and more than before would go in engineering, ceteris paribus. a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 46-47
TOPICS: 2.3 People Respond Predictably to Changes in Incentives | Positive and Negative Incentives

13. Marginal cost is the additional cost incurred as a result of making an economic decision.a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 42-43
TOPICS: 2.2 People Engage in Rational Decision Making and Marginal Thinking | Many Choices We Face
Involve Marginal Thinking

14. When considering whether or not to consume a second slice of cake, an individual is following marginal thinking if
she compares the total cost of consuming both the first and second slices with their total benefit before making a
decision. a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 43
TOPICS: 2.2 People Engage in Rational Decision Making and Marginal Thinking | Many Choices We Face
Involve Marginal Thinking

15. If Xavier gives up a job in which he earns $23,000 per year in order to go to college full time, his foregone income is
part of the opportunity cost of going to college.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 40
TOPICS: 2.1 People Face Scarcity and Costly Trade-offs | The Opportunity Cost of Going to College or Having a
Child

16. The opportunity cost of attending college is likely to be higher for a high school graduate who leaves a job grilling
hamburgers than it is for a high school dropout who leaves a job working as a computer network administrator. a.
True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 40
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