Franklyn A Plus Pass
Complete Test Bank-ECON MICRO
7th Edition
by William A. McEachern & Veronika
Dolar
Latest| All Chapters| A+ Answers
Fr
an
kl
yn
e
A
pl
us
Pa
1
ss
, Franklyn A Plus Pass
True / False
1. Economics is best defined as the study of how individuals decide to use limited resources in an attempt
to satisfy unlimited wants.
a. True
b. False
ANSWER: True
2. Economics studies how decision makers use scarce resources to satisfy unlimited wants.
a. True
b. False
ANSWER: True
3. In economics, money is an example of capital.
a. True
b. False
ANSWER: False
4. Profit is the payment received by resource owners for the use of their capital.
Fr
a. True
b. False
an
ANSWER: False
kl
yn
5. Rent is the payment received by resource owners for the use of their natural resources.
a. True
e
b. False
A
ANSWER: True
pl
us
6. An economist would classify 100 shares of the Apple Computers stock as capital.
a. True
Pa
2
ss
, Franklyn A Plus Pass
b. False
ANSWER: False
7. Profit is the payment made for land resources.
a. True
b. False
ANSWER: False
8. Resources are used only in the production of goods, not services.
a. True
b. False
ANSWER: False
9. Considering both product markets and resource markets, most economic decision makers participate in
the economy as both buyers and sellers.
a. True
b. False
ANSWER: True
Fr
10. Labor and capital are exchanged in the resource market.
an
a. True
kl
b. False
yn
ANSWER: True
e
11. A rational individual gives more to charity when such contributions receive favorable tax treatment.
A
a. True
pl
b. False
us
ANSWER: True
Pa
3
ss
, Franklyn A Plus Pass
12. A rational individual would make charitable contributions only if such contributions receive favorable
tax treatment.
a. True
b. False
ANSWER: False
13. The assumption of rational self-interest does not rule out the possibility of concern for other
individuals.
a. True
b. False
ANSWER: True
14. It is always rational to acquire more information before making a decision.
a. True
b. False
ANSWER: False
15. Rational self-interest is equivalent to pure selfishness.
a. True
Fr
b. False
an
ANSWER: False
kl
16. Sara is considering the purchase of a new car. Rational self-interest demands that she do an exhaustive
yn
research study to acquire every bit of information possible about her potential options.
a. True
e
b. False
A
ANSWER: False
pl
us
17. A marginal adjustment only refers to a minor change.
a. True
Pa
4
ss
Complete Test Bank-ECON MICRO
7th Edition
by William A. McEachern & Veronika
Dolar
Latest| All Chapters| A+ Answers
Fr
an
kl
yn
e
A
pl
us
Pa
1
ss
, Franklyn A Plus Pass
True / False
1. Economics is best defined as the study of how individuals decide to use limited resources in an attempt
to satisfy unlimited wants.
a. True
b. False
ANSWER: True
2. Economics studies how decision makers use scarce resources to satisfy unlimited wants.
a. True
b. False
ANSWER: True
3. In economics, money is an example of capital.
a. True
b. False
ANSWER: False
4. Profit is the payment received by resource owners for the use of their capital.
Fr
a. True
b. False
an
ANSWER: False
kl
yn
5. Rent is the payment received by resource owners for the use of their natural resources.
a. True
e
b. False
A
ANSWER: True
pl
us
6. An economist would classify 100 shares of the Apple Computers stock as capital.
a. True
Pa
2
ss
, Franklyn A Plus Pass
b. False
ANSWER: False
7. Profit is the payment made for land resources.
a. True
b. False
ANSWER: False
8. Resources are used only in the production of goods, not services.
a. True
b. False
ANSWER: False
9. Considering both product markets and resource markets, most economic decision makers participate in
the economy as both buyers and sellers.
a. True
b. False
ANSWER: True
Fr
10. Labor and capital are exchanged in the resource market.
an
a. True
kl
b. False
yn
ANSWER: True
e
11. A rational individual gives more to charity when such contributions receive favorable tax treatment.
A
a. True
pl
b. False
us
ANSWER: True
Pa
3
ss
, Franklyn A Plus Pass
12. A rational individual would make charitable contributions only if such contributions receive favorable
tax treatment.
a. True
b. False
ANSWER: False
13. The assumption of rational self-interest does not rule out the possibility of concern for other
individuals.
a. True
b. False
ANSWER: True
14. It is always rational to acquire more information before making a decision.
a. True
b. False
ANSWER: False
15. Rational self-interest is equivalent to pure selfishness.
a. True
Fr
b. False
an
ANSWER: False
kl
16. Sara is considering the purchase of a new car. Rational self-interest demands that she do an exhaustive
yn
research study to acquire every bit of information possible about her potential options.
a. True
e
b. False
A
ANSWER: False
pl
us
17. A marginal adjustment only refers to a minor change.
a. True
Pa
4
ss
