Chapter 01 12e Micro
1) The answers to an economy's three central economic problems are determined by the
interaction of three forces: economic forces, political forces, and social forces.
⊚ true
⊚ false
2) Scarcity exists because economies cannot produce enough to meet the perceived desires of
all individuals.
⊚ true
⊚ false
3) Only marginal costs, not sunk costs, affect economic decisions if individuals are rational.
⊚ true
⊚ false
4) The economic decision rule is to undertake an action only when the marginal benefits of that
action are greater than its total costs.
⊚ true
⊚ false
5) The opportunity cost of undertaking an activity includes any sunk cost.
⊚ true
⊚ false
6) The "invisible hand" is the price mechanism that guides people’s actions in the market.
⊚ true
⊚ false
7) Social and political forces affect the way in which the invisible hand works.
⊚ true
⊚ false
1
1) The answers to an economy's three central economic problems are determined by the
interaction of three forces: economic forces, political forces, and social forces.
⊚ true
⊚ false
2) Scarcity exists because economies cannot produce enough to meet the perceived desires of
all individuals.
⊚ true
⊚ false
3) Only marginal costs, not sunk costs, affect economic decisions if individuals are rational.
⊚ true
⊚ false
4) The economic decision rule is to undertake an action only when the marginal benefits of that
action are greater than its total costs.
⊚ true
⊚ false
5) The opportunity cost of undertaking an activity includes any sunk cost.
⊚ true
⊚ false
6) The "invisible hand" is the price mechanism that guides people’s actions in the market.
⊚ true
⊚ false
7) Social and political forces affect the way in which the invisible hand works.
⊚ true
⊚ false
1
