Test Bank for ECON MICRO, 7th Edition by William A. McEachern.pdf

,Name Clas Dat
n
: s: e:

Chapter n01:nThenArtnandnSciencenofnEconomicnAnalysis
Truen/nFalse

1. Economicsnisnbestndefinednasnthenstudynofnhownindividualsndecidentonusenlimited nresourcesnin nan nattemptntonsatisfy n
unlimited n wants.
a. True
b. False
ANSWER: True

2. Economicsn studiesn hown decision n makersn usen scarcen resourcesn to n satisfy n unlimited n wants.
a. True
b. False
ANSWER: True

3. In n economics, n money n isn an n example n of n capital.
a. True
b. False
ANSWER: False

4. Profitn isn then paymentn received n by n resource n ownersn forn then usen of n theirn capital.
a. True
b. False
ANSWER: False

5. Rentn isn then paymentn received n by n resource n ownersn forn then usen of n theirn naturaln resources.
a. True
b. False
ANSWER: True

6. An n economistn would n classify n 100 n sharesn of n then Apple n Computersn stock n asn capital.
a. True
b. False
ANSWER: False

7. Profitn isn then paymentn maden forn land n resources.
a. True
b. False
ANSWER: False

8. Resourcesn aren used n only n in n then production n of n goods,n notn services.
a. True
b. False
ANSWER: False

9. Consideringn bothnproductnmarketsnand nresourcenmarkets,nmostneconomicndecision nmakersnparticipatenin ntheneconomy nasn
both n buyersn and n sellers.
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,Name Clas Dat
n
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Chapter n01:nThenArtnandnSciencenofnEconomicnAnalysis

a. True
b. False
ANSWER: True

10. Laborn and n capitaln aren exchanged n in n then resource n market.
a. True
b. False
ANSWER: True

11. An rationaln individualn givesn moren to n charity n when n such n contributionsn receive n favorable n tax n treatment.
a. True
b. False
ANSWER: True

12. An rationaln individualnwouldnmakencharitablencontributionsn only n if n such n contributionsn receive n favorable n tax n treatment.
a. True
b. False
ANSWER: False

13. Then assumption n of n rationaln self-interestn doesn notn rulen outn then possibility n of n concern n forn othern individuals.
a. True
b. False
ANSWER: True

14. Itn isn alwaysn rationaln to n acquiren moren information n beforen makingn an decision.
a. True
b. False
ANSWER: False

15. Rationaln self-interestn isn equivalentn to n puren selfishness.
a. True
b. False
ANSWER: False

16. Saran isn consideringn then purchase n of n an newn car.n Rationaln self-
interestn demandsnthatnshendon ann exhaustivenresearchnstudyn tonacquireneveryn bitn ofninformationn possiblenaboutnhernpotentialn
options.
a. True
b. False
ANSWER: False

17. An marginaln adjustmentn only n refersn to n an minorn change.
a. True
b. False
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, Name Clas Dat
n
: s: e:

Chapter n01:nThenArtnandnSciencenofnEconomicnAnalysis
ANSWER: False




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