Test Bank for Microeconomics, 20th Edition by Campbell McConnell.pdf

MicroeconomicsnEditionn23nbynMcConnelln
Versionn1n
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1n
CORRECTnANSWERSnAREn
LOCATEDnINnTHEn2NDnHALFnOFn
THISnDOC.n
TRUE/FALSEn-nWriten'T'nifnthenstatementn
isntruenandn'F'nifnthenstatementnisnfalse.n
1)nAnneconomicnmodelnisnannidealnorn
utopianntypenofneconomynthatnsocietyn
shouldnstriventonobtainnthroughneconomicn
policy.n
⊚ntruen
⊚nfalsen
n

2)nBecauseneconomicngeneralizationsnaren
simplificationsnfromnreality,ntheynaren
impracticalnandnuseless.n
⊚ntruen
⊚nfalsen
n

3)nIfneconomicntheoriesnarensolidlynbasednonn
relevantnfacts,nthennappropriaten
economicnpolicynbecomesnobviousnandn
uncontroversial.n
⊚ntruen
⊚nfalsen
n

4)nNormativenstatementsnarenexpressionsnofn
facts.n
⊚ntruen
⊚nfalsen
n

5)nPositivenstatementsnarenexpressionsnofn
valuenjudgments.n
⊚ntruen
⊚nfalsen
n

6)n"Theninflationnratenisnthenhighestnitnhasn
beenninn40nyears."nThisnisnannexamplenofn
anpositivenstatement.n
⊚ntruen

,⊚nfalsen
n

7)n"ThenFederalnReservenraisingninterestn
ratesnisnthenbestnwayntonbringndownn
inflation."nThisnisnannexamplenofnan
positivenstatement.n
⊚ntruen
⊚nfalsen
n

8)n"Wagesninntheneconomynarentoonlow."n
Thisnisnannexamplenofnannormativen
statement.n
⊚ntruen
⊚nfalsen
n

9)nMacroeconomicsnexplainsnthenbehaviorn
ofnindividualnhouseholdsnandnbusinessn
firms;nmicroeconomicsnisnconcernedn
withnthenbehaviornofnaggregatesnornthen
economynasnanwhole.n
⊚ntruen
⊚nfalsen
n

10)nPurposefulnbehaviornimpliesnthatn
everyonenwillnmakenidenticalnchoices.n
⊚ntruen
⊚nfalsen
n

11)nPurposefulnbehaviornimpliesnthatn
everyonenusingnmarginalnanalysisnwilln
alwaysnmakencorrectnchoices.n
⊚ntruen
⊚nfalsen
n

ACCESSnTestnBanknfornMicroeconomicsn23rdnEditionnMcConnell
nursytestbank.store
MicroeconomicsnEditionn23nbynMcConnelln
Versionn1n
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2n
12)nMarginalnanalysisnmeansnthatndecisionn
makersncomparenthenextranbenefitsnwithn
thenextrancostsnofnanspecificnchoice.n

,⊚ntruen
⊚nfalsen
n

13)nRationalnindividualsnmaynmakendifferentn
choicesnbecausentheirnpreferencesnandn
circumstancesndiffer.n
⊚ntruen
⊚nfalsen
n

14)nChoicesnentailnmarginalncostsnbecausen
resourcesnarenscarce.n
⊚ntruen
⊚nfalsen
n

15)nThenproductionnpossibilitiesncurvenshowsn
variousncombinationsnofntwonproductsn
thatnanneconomyncannproducenwhenn
achievingnfullnemployment.n
⊚ntruen
⊚nfalsen
n

16)nThenproductionnpossibilitiesncurvenshowsn
whatncombinationnofntwonproductsnthatn
anneconomynshouldnproduce.n
⊚ntruen
⊚nfalsen
n

17)nThenentrepreneur'snsolenfunctionnisnton
combinenothernresourcesn(land,nlabor,n
andncapital)ninnthenproductionnofnsomen
goodnornservice.n
⊚ntruen
⊚nfalsen
n

18)nThenartisticncreationsnofnprofessionaln
singers,nwriters,nandndigitalnartistsnaren
capital.n
⊚ntruen
⊚nfalsen
n

19)nProductsnandnservicesnarenscarcenbecausen
resourcesnarenscarce.n
⊚ntruen
⊚nfalsen
n

20)nProductsnandnservicesnarenscarcensolelyn
becausenresourcesnarenfiniteninnamount.n
⊚ntruen

, ⊚nfalsen
n

21)nAnneconomyncannotnproducenatnanpointn
outsidenofnitsnproductionnpossibilitiesn
curvenbecausenhumanneconomicnwantsn
areninsatiable.n
⊚ntruen
⊚nfalsen
n

22)nThenprocessnbynwhichncapitalngoodsnaren
accumulatednisnknownnasninvestment.n
⊚ntruen
⊚nfalsen
n

23)nAnprofessionalnmusiciannwritingnannewn
songnisnengagingninninvestment.n
⊚ntruen
⊚nfalsen
n

24)nThenpresentnchoicenofnpositionnonnthen
productionnpossibilitiesncurvenwillnnotn
influencenthenfuturenlocationnofnthen
curve.n
⊚ntruen
⊚nfalsen
n

ACCESSnTestnBanknfornMicroeconomicsn23rdnEditionnMcConnell
nursytestbank.store
MicroeconomicsnEditionn23nbynMcConnelln
Versionn1n
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3n
25)nAlthoughnsleepingninnonnanworkdaynorn
schoolndaynhasnannopportunityncost,n
sleepingnlatenonnthenweekendndoesnnot.n
⊚ntruen
⊚nfalsen
n

26)n
n

Referntonthendiagram.nGivennproductionn
possibilitiesncurvena,nthencombinationnofn
civiliannandnwarngoodsnindicatednbyn
pointnXnisnunattainablentonthisneconomy.n