DOWNLOAD THE Test Bank for Microeconomics for Life Smart Choices forYou 2nd
j j j j j j j j j j j j
Edition Cohen
j j
MicroeconomicsjforjLife:jSmartjChoicesjforjYou,j2ej(Cohen)jChapterj2
j MakingjSmartjChoices:jThejLawjofjDemand
2.1 PutjYourjMoneyjWherejYourjMouthjIs:jWeighingjBenefits,jCosts,jandjSubstitutes
1) Yourjpreferencesjmeasure
A) thejavailabilityjofjalternatives.
B) howjbadlyjyoujwantjsomething.
C) thejavailabilityjofjsubstitutes.
D) howjlimitedjyourjtimejis.
E) thejpricejofjajproduct.j
Answer:jB
Diff:j1 Type:jMC PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
2) AjSociologyjclassjisjajsubstitutejforjanjEconomicsjclassjif
A) attendingjthejtwojclassesjhasjthejsamejopportunityjcost.
B) thejtwojclassesjsatisfyjthejsamejwant.
C) thejtuitionjforjthejtwojclassesjisjthejsame.
D) bothjclassesjarejtaughtjbyjthejsamejprofessor.
E) bothjclassesjarejatjthejsamejtime.jA
nswer:jB
Diff:j2 Type:jMC PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
3) Substitutesjmust
A) havejthejsamejprice.
B) satisfyjthejsamejwant.
C) bejsoldjinjthejsamejstore.
D) havejthejsamejopportunityjcost.
E) bejexactlyjthejsamejproductjorjservice.jA
nswer:jB
Diff:j2 Type:jMC PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
1
Copyrightj©j2016jPearsonjCanada,jInc.
mynursytest.store
,DOWNLOAD THE Test Bank for Microeconomics for Life Smart Choices forYou 2nd
j j j j j j j j j j j j
Edition Cohen
j j
4) TojgetjticketsjtojseejthejSpicejGirlsjreunionjtourjSuejmissedjajdayjatjwork,jwhichjcostjher
$300,jdrovejherjcarjdowntownjandjparked,jwhichjcostjherj$30,jandjpaidj$170jforjthejtickets.jSue'sj
expectedjbenefitsjfromjattendingjthejconcertjarejatjleast
A)j$300.
B)j$200.
C)j$130.
D)j$500.
E)j$170.
Answer:j D
Diff:j2 Type:jMC PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
5) Whatjyoujcanjaffordjisjlimitedjby
A) preferences.
B) demand.
C) substitutes.
D) money.
E) externalities.
Answer:j D
Diff:j2 Type:jMC PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
6) Whatjyoujcanjaffordjisjlimitedjby
A) preferences.
B) externalities.
C) substitutes.
D) demand.
E) time.jA
nswer:j E
Diff:j2 Type:jMC PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
2
Copyrightj©j2016jPearsonjCanada,jInc.
mynursytest.store
,DOWNLOAD THE Test Bank for Microeconomics for Life Smart Choices forYou 2nd
j j j j j j j j j j j j
Edition Cohen
j j
7) YourjdemandjforjticketsjtojthejLadyjGagajconcertjdependsjon
A) howjmuchjyoujlikejLadajGaga.
B) yourjincome.
C) whatjotherjlivejconcertsjyoujarejinterestedjin.
D) whatjelsejyoujmightjspendjthejmoneyjon.
E) alljofjthejabove.j
Answer:j E
Diff:j1 Type:jMC PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
8) Economistsjdescribejalljofjyourjwantsj-jandjhowjintensejeachjwantjisj-
jasj yourjpreferences.jAnswer:j TRUE
Diff:j1 Type:jTF PagejRef:j28-
29jSkill:j Recall
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
9) Forjeconomists,jthejtermsjwantsjandjdemandsjmeanjthejsamejthing.jAn
swer:j FALSE
Diff:j2 Type:jTF PagejRef:j28-
29jSkill:j Recall
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
10) Yourjpreferencesjcanjbejaffectedjbyjadvertising.jA
nswer:j TRUE
Diff:j2 Type:jTF PagejRef:j28-
29jSkill:j Recall
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
11) Yourjpreferencesjarejdeterminedjonlyjbyjyourjlogicaljneeds.jA
nswer:j FALSE
Diff:j2 Type:jTF PagejRef:j28-
29jSkill:j Recall
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
12) Makingjajsmartjchoicejdependsjonjwhatjsubstitutesjarejavailablejandjwhatjtheyjcost.jAns
wer:j TRUE
Diff:j1 Type:jTF PagejRef:j28-
29jSkill:j Recall
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
3
Copyrightj©j2016jPearsonjCanada,jInc.
mynursytest.store
, DOWNLOAD THE Test Bank for Microeconomics for Life Smart Choices forYou 2nd
j j j j j j j j j j j j
Edition Cohen
j j
13) Samjwilljdrinkjanythingjthatjisjcold,jwhilejDavejwilljonlyjdrinkjGatorade.jWejexpectjSamjisjwilli
ngjtojpayjmorejforjGatoradejthanjisjDave.
Answer:j FALSE
Diff:j1 Type:jTF PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
14) Samjwilljdrinkjanythingjthatjisjcold,jwhilejDavejwilljonlyjdrinkjGatorade.jWejexpectjDavejisjwil
lingjtojpayjmorejforjGatoradejthanjisjSam.
Answer:j TRUE
Diff:j1 Type:jTF PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
15) Smartjchoicesjarejbasedjonjajcomparisonjofjexpectedjbenefitsjandjopportunityjcosts.jAns
wer:j TRUE
Diff:j2 Type:jTF PagejRef:j28-
29jSkill:j Recall
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
16) Substitutesjneedjtojbejexactlyjthejsamejproductjorjservicejasjthejproductjorjservicejyoujwant.jAns
wer:j FALSE
Diff:j1 Type:jTF PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
17) Substitutesjcanjbejdifferentjproductsjorjservicesjasjlongjasjtheyjsatisfyjthejsamejwant.jAns
wer:j TRUE
Diff:j1 Type:jTF PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
18) Whatjyoujcanjaffordjisjlimitedjbyjmorejthanjjustjmoney.jAn
swer:j TRUE
Diff:j1 Type:jTF PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
4
Copyrightj©j2016jPearsonjCanada,jInc.
mynursytest.store
j j j j j j j j j j j j
Edition Cohen
j j
MicroeconomicsjforjLife:jSmartjChoicesjforjYou,j2ej(Cohen)jChapterj2
j MakingjSmartjChoices:jThejLawjofjDemand
2.1 PutjYourjMoneyjWherejYourjMouthjIs:jWeighingjBenefits,jCosts,jandjSubstitutes
1) Yourjpreferencesjmeasure
A) thejavailabilityjofjalternatives.
B) howjbadlyjyoujwantjsomething.
C) thejavailabilityjofjsubstitutes.
D) howjlimitedjyourjtimejis.
E) thejpricejofjajproduct.j
Answer:jB
Diff:j1 Type:jMC PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
2) AjSociologyjclassjisjajsubstitutejforjanjEconomicsjclassjif
A) attendingjthejtwojclassesjhasjthejsamejopportunityjcost.
B) thejtwojclassesjsatisfyjthejsamejwant.
C) thejtuitionjforjthejtwojclassesjisjthejsame.
D) bothjclassesjarejtaughtjbyjthejsamejprofessor.
E) bothjclassesjarejatjthejsamejtime.jA
nswer:jB
Diff:j2 Type:jMC PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
3) Substitutesjmust
A) havejthejsamejprice.
B) satisfyjthejsamejwant.
C) bejsoldjinjthejsamejstore.
D) havejthejsamejopportunityjcost.
E) bejexactlyjthejsamejproductjorjservice.jA
nswer:jB
Diff:j2 Type:jMC PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
1
Copyrightj©j2016jPearsonjCanada,jInc.
mynursytest.store
,DOWNLOAD THE Test Bank for Microeconomics for Life Smart Choices forYou 2nd
j j j j j j j j j j j j
Edition Cohen
j j
4) TojgetjticketsjtojseejthejSpicejGirlsjreunionjtourjSuejmissedjajdayjatjwork,jwhichjcostjher
$300,jdrovejherjcarjdowntownjandjparked,jwhichjcostjherj$30,jandjpaidj$170jforjthejtickets.jSue'sj
expectedjbenefitsjfromjattendingjthejconcertjarejatjleast
A)j$300.
B)j$200.
C)j$130.
D)j$500.
E)j$170.
Answer:j D
Diff:j2 Type:jMC PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
5) Whatjyoujcanjaffordjisjlimitedjby
A) preferences.
B) demand.
C) substitutes.
D) money.
E) externalities.
Answer:j D
Diff:j2 Type:jMC PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
6) Whatjyoujcanjaffordjisjlimitedjby
A) preferences.
B) externalities.
C) substitutes.
D) demand.
E) time.jA
nswer:j E
Diff:j2 Type:jMC PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
2
Copyrightj©j2016jPearsonjCanada,jInc.
mynursytest.store
,DOWNLOAD THE Test Bank for Microeconomics for Life Smart Choices forYou 2nd
j j j j j j j j j j j j
Edition Cohen
j j
7) YourjdemandjforjticketsjtojthejLadyjGagajconcertjdependsjon
A) howjmuchjyoujlikejLadajGaga.
B) yourjincome.
C) whatjotherjlivejconcertsjyoujarejinterestedjin.
D) whatjelsejyoujmightjspendjthejmoneyjon.
E) alljofjthejabove.j
Answer:j E
Diff:j1 Type:jMC PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
8) Economistsjdescribejalljofjyourjwantsj-jandjhowjintensejeachjwantjisj-
jasj yourjpreferences.jAnswer:j TRUE
Diff:j1 Type:jTF PagejRef:j28-
29jSkill:j Recall
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
9) Forjeconomists,jthejtermsjwantsjandjdemandsjmeanjthejsamejthing.jAn
swer:j FALSE
Diff:j2 Type:jTF PagejRef:j28-
29jSkill:j Recall
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
10) Yourjpreferencesjcanjbejaffectedjbyjadvertising.jA
nswer:j TRUE
Diff:j2 Type:jTF PagejRef:j28-
29jSkill:j Recall
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
11) Yourjpreferencesjarejdeterminedjonlyjbyjyourjlogicaljneeds.jA
nswer:j FALSE
Diff:j2 Type:jTF PagejRef:j28-
29jSkill:j Recall
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
12) Makingjajsmartjchoicejdependsjonjwhatjsubstitutesjarejavailablejandjwhatjtheyjcost.jAns
wer:j TRUE
Diff:j1 Type:jTF PagejRef:j28-
29jSkill:j Recall
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
3
Copyrightj©j2016jPearsonjCanada,jInc.
mynursytest.store
, DOWNLOAD THE Test Bank for Microeconomics for Life Smart Choices forYou 2nd
j j j j j j j j j j j j
Edition Cohen
j j
13) Samjwilljdrinkjanythingjthatjisjcold,jwhilejDavejwilljonlyjdrinkjGatorade.jWejexpectjSamjisjwilli
ngjtojpayjmorejforjGatoradejthanjisjDave.
Answer:j FALSE
Diff:j1 Type:jTF PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
14) Samjwilljdrinkjanythingjthatjisjcold,jwhilejDavejwilljonlyjdrinkjGatorade.jWejexpectjDavejisjwil
lingjtojpayjmorejforjGatoradejthanjisjSam.
Answer:j TRUE
Diff:j1 Type:jTF PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
15) Smartjchoicesjarejbasedjonjajcomparisonjofjexpectedjbenefitsjandjopportunityjcosts.jAns
wer:j TRUE
Diff:j2 Type:jTF PagejRef:j28-
29jSkill:j Recall
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
16) Substitutesjneedjtojbejexactlyjthejsamejproductjorjservicejasjthejproductjorjservicejyoujwant.jAns
wer:j FALSE
Diff:j1 Type:jTF PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
17) Substitutesjcanjbejdifferentjproductsjorjservicesjasjlongjasjtheyjsatisfyjthejsamejwant.jAns
wer:j TRUE
Diff:j1 Type:jTF PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
18) Whatjyoujcanjaffordjisjlimitedjbyjmorejthanjjustjmoney.jAn
swer:j TRUE
Diff:j1 Type:jTF PagejRef:j28-
29jSkill:j Applied
Objective:j2.1jDescribejwhatjdeterminesjyourjwillingnessjandjabilityjtojpayjforjajproductjorjservi
ce.
4
Copyrightj©j2016jPearsonjCanada,jInc.
mynursytest.store
