Foundations of Economics 8th Edition
by Robin Bade – Complete Test Bank
with Full Pack Solutions (Updated
2025/2026, Instant Download)
1
Copyright © 2018 Pearson Education, Inc.
Foundations of Microeconomics, 8e (Bade)
Chapter 2 The U.S. and Global Economies
2.1 What, How, and For Whom?
1) Items that are purchased by individuals for their own enjoyment are called
A) consumption goods and services.
B) capital goods.
C) government goods and services.
D) exports of goods and services.
E) private goods.
Answer: A
Topic: Consumption goods and services
Skill: Level 1: Definition
Section: Checkpoint 2.1
Status: Old
AACSB: Reflective thinking
2) Items bought by individuals to provide personal enjoyment are termed
A) consumption goods.
B) personal goods.
C) consumption or investment goods.
D) standard goods.
E) pleasure goods.
Answer: A
Topic: Consumption goods and services
Skill: Level 1: Definition
Section: Checkpoint 2.1
Status: Old
AACSB: Reflective thinking
3) What would be an example of a consumption good?
A) Antonio, the manager of the local Taco Hut, purchases a new deep fryer.
,B) The local driver's license office purchases a new digital camera and printer.
C) Rhianna gets a haircut.
D) Jake buys an iPhone.
E) Donald Trump purchases furniture for his office.
Answer: D
Topic: What we produce
Skill: Level 2: Using definitions
Section: Checkpoint 2.1
Status: Old
AACSB: Reflective thinking
DOWNLOAD THE Test Bank for Foundations of Economics 8th Edition Bade
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2
Copyright © 2018 Pearson Education, Inc.
4) Which of the following is a consumption good or service?
A) a personal computer purchased in order to play games at home
B) a United Airline ticket counter
C) the Endeavor space shuttle
D) a United Parcel Service truck delivering Christmas gifts
E) a satellite dish installed by Cox Cable to download programs that are then distributed
through
its cable system
Answer: A
Topic: Consumption goods and services
Skill: Level 2: Using definitions
Section: Checkpoint 2.1
Status: Old
AACSB: Reflective thinking
5) What would be an example of a consumption service?
A) Rhianna gets a haircut.
B) Jake buys an iPhone.
C) Antonio, the manager of the local Taco Hut, purchases a new deep fryer.
D) The local driver's license office purchases a new digital camera and printer.
E) Donald Trump purchases furniture for his office.
Answer: A
Topic: Consumption goods and services
Skill: Level 2: Using definitions
Section: Checkpoint 2.1
Status: Old
AACSB: Reflective thinking
6) The largest share of total production in the United States is
A) consumption goods and services.
B) capital goods.
,C) government goods and services.
D) exported goods and services.
E) imported goods and services.
Answer: A
Topic: Consumption goods and services
Skill: Level 1: Definition
Section: Checkpoint 2.1
Status: Old
AACSB: Reflective thinking
DOWNLOAD THE Test Bank for Foundations of Economics 8th Edition Bade
mynursytest.store
3
Copyright © 2018 Pearson Education, Inc.
7) Items bought by businesses to help produce other goods and services are called
A) consumption goods and services.
B) capital goods.
C) government goods and services.
D) exports of goods and services.
E) productive goods.
Answer: B
Topic: Capital goods
Skill: Level 1: Definition
Section: Checkpoint 2.1
Status: Old
AACSB: Reflective thinking
8) Which of the following is NOT a consumption good?
A) Nike swimming trunks
B) marriage counseling services
C) a UPS truck
D) a Subway sandwich
E) a U.S. government bond
Answer: C
Topic: Capital goods
Skill: Level 2: Using definitions
Section: Checkpoint 2.1
Status: Old
AACSB: Application of knowledge
9) An item that is purchased to increase businesses' productive resources is
A) an export.
B) a government good.
C) a capital good.
D) a consumption good.
E) a productive good.
, Answer: C
Topic: Capital goods
Skill: Level 1: Definition
Section: Checkpoint 2.1
Status: Old
AACSB: Reflective thinking
DOWNLOAD THE Test Bank for Foundations of Economics 8th Edition Bade
mynursytest.store
4
Copyright © 2018 Pearson Education, Inc.
10) What would be an example of capital good?
A) Jeanette buys a new dress.
B) The local driver's license office purchases a new digital camera and printer.
C) Antonio, the manager of the local Taco Hut, purchases a new deep fryer.
D) Apple sells computers to Japan.
E) Rhianna gets a haircut.
Answer: C
Topic: Capital goods
Skill: Level 2: Using definitions
Section: Checkpoint 2.1
Status: Old
AACSB: Reflective thinking
11) The difference between consumption and capital goods is that
A) only big corporations can afford capital goods.
B) capital goods are used to produce additional goods while consumption goods are not.
C) capital goods are provided by the government.
D) consumption goods can be enjoyed by many people at the same time.
E) it is illegal to export capital goods.
Answer: B
Topic: Consumption and capital goods
Skill: Level 1: Definition
Section: Checkpoint 2.1
Status: Old
AACSB: Reflective thinking
12) Which of the following is NOT an example of a capital good?
A) a miner's cap
B) a GPS tracking device
C) an airport kiosk
D) a U.S. government bond
E) a stethoscope
Answer: D
Topic: Capital goods
Skill: Level 2: Using definitions
by Robin Bade – Complete Test Bank
with Full Pack Solutions (Updated
2025/2026, Instant Download)
1
Copyright © 2018 Pearson Education, Inc.
Foundations of Microeconomics, 8e (Bade)
Chapter 2 The U.S. and Global Economies
2.1 What, How, and For Whom?
1) Items that are purchased by individuals for their own enjoyment are called
A) consumption goods and services.
B) capital goods.
C) government goods and services.
D) exports of goods and services.
E) private goods.
Answer: A
Topic: Consumption goods and services
Skill: Level 1: Definition
Section: Checkpoint 2.1
Status: Old
AACSB: Reflective thinking
2) Items bought by individuals to provide personal enjoyment are termed
A) consumption goods.
B) personal goods.
C) consumption or investment goods.
D) standard goods.
E) pleasure goods.
Answer: A
Topic: Consumption goods and services
Skill: Level 1: Definition
Section: Checkpoint 2.1
Status: Old
AACSB: Reflective thinking
3) What would be an example of a consumption good?
A) Antonio, the manager of the local Taco Hut, purchases a new deep fryer.
,B) The local driver's license office purchases a new digital camera and printer.
C) Rhianna gets a haircut.
D) Jake buys an iPhone.
E) Donald Trump purchases furniture for his office.
Answer: D
Topic: What we produce
Skill: Level 2: Using definitions
Section: Checkpoint 2.1
Status: Old
AACSB: Reflective thinking
DOWNLOAD THE Test Bank for Foundations of Economics 8th Edition Bade
mynursytest.store
2
Copyright © 2018 Pearson Education, Inc.
4) Which of the following is a consumption good or service?
A) a personal computer purchased in order to play games at home
B) a United Airline ticket counter
C) the Endeavor space shuttle
D) a United Parcel Service truck delivering Christmas gifts
E) a satellite dish installed by Cox Cable to download programs that are then distributed
through
its cable system
Answer: A
Topic: Consumption goods and services
Skill: Level 2: Using definitions
Section: Checkpoint 2.1
Status: Old
AACSB: Reflective thinking
5) What would be an example of a consumption service?
A) Rhianna gets a haircut.
B) Jake buys an iPhone.
C) Antonio, the manager of the local Taco Hut, purchases a new deep fryer.
D) The local driver's license office purchases a new digital camera and printer.
E) Donald Trump purchases furniture for his office.
Answer: A
Topic: Consumption goods and services
Skill: Level 2: Using definitions
Section: Checkpoint 2.1
Status: Old
AACSB: Reflective thinking
6) The largest share of total production in the United States is
A) consumption goods and services.
B) capital goods.
,C) government goods and services.
D) exported goods and services.
E) imported goods and services.
Answer: A
Topic: Consumption goods and services
Skill: Level 1: Definition
Section: Checkpoint 2.1
Status: Old
AACSB: Reflective thinking
DOWNLOAD THE Test Bank for Foundations of Economics 8th Edition Bade
mynursytest.store
3
Copyright © 2018 Pearson Education, Inc.
7) Items bought by businesses to help produce other goods and services are called
A) consumption goods and services.
B) capital goods.
C) government goods and services.
D) exports of goods and services.
E) productive goods.
Answer: B
Topic: Capital goods
Skill: Level 1: Definition
Section: Checkpoint 2.1
Status: Old
AACSB: Reflective thinking
8) Which of the following is NOT a consumption good?
A) Nike swimming trunks
B) marriage counseling services
C) a UPS truck
D) a Subway sandwich
E) a U.S. government bond
Answer: C
Topic: Capital goods
Skill: Level 2: Using definitions
Section: Checkpoint 2.1
Status: Old
AACSB: Application of knowledge
9) An item that is purchased to increase businesses' productive resources is
A) an export.
B) a government good.
C) a capital good.
D) a consumption good.
E) a productive good.
, Answer: C
Topic: Capital goods
Skill: Level 1: Definition
Section: Checkpoint 2.1
Status: Old
AACSB: Reflective thinking
DOWNLOAD THE Test Bank for Foundations of Economics 8th Edition Bade
mynursytest.store
4
Copyright © 2018 Pearson Education, Inc.
10) What would be an example of capital good?
A) Jeanette buys a new dress.
B) The local driver's license office purchases a new digital camera and printer.
C) Antonio, the manager of the local Taco Hut, purchases a new deep fryer.
D) Apple sells computers to Japan.
E) Rhianna gets a haircut.
Answer: C
Topic: Capital goods
Skill: Level 2: Using definitions
Section: Checkpoint 2.1
Status: Old
AACSB: Reflective thinking
11) The difference between consumption and capital goods is that
A) only big corporations can afford capital goods.
B) capital goods are used to produce additional goods while consumption goods are not.
C) capital goods are provided by the government.
D) consumption goods can be enjoyed by many people at the same time.
E) it is illegal to export capital goods.
Answer: B
Topic: Consumption and capital goods
Skill: Level 1: Definition
Section: Checkpoint 2.1
Status: Old
AACSB: Reflective thinking
12) Which of the following is NOT an example of a capital good?
A) a miner's cap
B) a GPS tracking device
C) an airport kiosk
D) a U.S. government bond
E) a stethoscope
Answer: D
Topic: Capital goods
Skill: Level 2: Using definitions
