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The Exploration of Economics International Edition 6th Edition by Robert L. Sexton - Test Bank
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,Chapter 1—The Role and Method of EconomicsTRUE/FALSE
1. Since resources are abundant, we do not have to make choices about their use.
ANS: F PTS: 1 REF: p. 3
TOP: 1.1 Economics: A Brief Introduction | Economics—A Word with Many Different Meanings
2. Economics is the study of choices we make among our many wants and desires.
ANS: T PTS: 1 REF: p. 3
TOP: 1.1 Economics: A Brief Introduction | Economics—A Word with Many Different Meanings
3. It is possible to completely eliminate scarcity.
ANS: F PTS: 1 REF: p. 3-4
TOP: 1.1 Economics: A Brief Introduction | Economics—A Word with Many Different Meanings
4. Scarcity applies to decision makers in macroeconomics but not in microeconomics.
ANS: F PTS: 1 REF: p. 3-4
TOP: 1.1 Economics: A Brief Introduction | Economics—A Word with Many Different Meanings
5. Scarcity forces us to choose, and choices are costly because we must give up other opportunities that
we value
ANS: T PTS: 1 REF: p. 3-4
TOP: 1.1 Economics: A Brief Introduction | Economics—A Word with Many Different Meanings
6. Wealthy consumers do not have to make decisions on what to buy or how much to save.
ANS: F PTS: 1 REF: p. 4
TOP: 1.1 Economics: A Brief Introduction | Economics—A Word with Many Different Meanings
7. If we choose more work we sacrifice leisure.
ANS: T PTS: 1 REF: p. 4-5
TOP: 1.1 Economics: A Brief Introduction | Economics Is All Around Us
8. Living in a world of scarcity involves trade-offs.
ANS: T PTS: 1 REF: p. 5
© 2013 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from
the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
, TOP: 1.1 Economics: A Brief Introduction | Economics Is All Around Us
9. One topic that microeconomics explores is how prices are determined in individual markets, while
macroeconomics is concerned with issues such as the economy's overall rate of inflation, economic
growth and unemployment.
ANS: T PTS: 1 REF: p. 13
TOP: 1.3 Economic Theory | The Two Branches of Economics: Microeconomics and
Macroeconomics
10. Microeconomics is the branch of economics in which you study inflation and unemployment in the
economy.
ANS: F PTS: 1 REF: p. 13
TOP: 1.3 Economic Theory | The Two Branches of Economics: Microeconomics and
Macroeconomics
11. Microeconomics explores the allocation of scarce resources from the perspective of small economic
units such as consumers and firms.
ANS: T PTS: 1 REF: p. 13
TOP: 1.3 Economic Theory | The Two Branches of Economics: Microeconomics and
Macroeconomics
12. Economists assume that most individuals act as if they are motivated by self-interest and respond in
predictable ways to changing circumstances.
ANS: T PTS: 1 REF: p. 6-7
TOP: 1.2 Economic Behavior | Self-Interest
13. Economists believe that only a small part of human behavior can be explained and predicted by
assuming that most people act as if they are motivated by their own self-interest in an effort to increase
their expected personal satisfaction.
ANS: F PTS: 1 REF: p. 6-7
TOP: 1.2 Economic Behavior | Self-Interest
14. Self-interest could never include benevolence.
ANS: F PTS: 1 REF: p. 7
TOP: 1.2 Economic Behavior | Self-Interest
15. To an economist, individuals are acting "rationally" if they are striving to do their best to achieve their
goals.
© 2013 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from
the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
, ANS: T PTS: 1 REF: p. 7
TOP: 1.2 Economic Behavior | What Is Rational Behavior?
16. Economists presume that when making a decision, individuals consider both the current action and the
future consequences of that action.
ANS: T PTS: 1 REF: p. 7
TOP: 1.2 Economic Behavior | What Is Rational Behavior?
17. When people make choices they typically know with certainty which choice is best.
ANS: F PTS: 1 REF: p. 7
TOP: 1.2 Economic Behavior | What Is Rational Behavior?
18. Economists believe that most people's actions are rational and purposeful not random and chaotic.
ANS: T PTS: 1 REF: p. 7
TOP: 1.2 Economic Behavior | What Is Rational Behavior?
19. A good economic theory is more useful when it includes detailed facts even if the facts are not relevant
to the questions being investigated.
ANS: F PTS: 1 REF: p. 9-10
TOP: 1.3 Economic Theory | Economic Theories
20. Economic models are of limited use since they cannot be tested empirically.
ANS: F PTS: 1 REF: p. 10
TOP: 1.3 Economic Theory | Developing a Testable Proposition
21. A hypothesis is a normative statement.
ANS: F PTS: 1 REF: p. 10
TOP: 1.3 Economic Theory | Developing a Testable Proposition
22. A testable proposition that predicts how people will react to changed circumstances is called a
hypothesis.
ANS: T PTS: 1 REF: p. 10
TOP: 1.3 Economic Theory | Developing a Testable Proposition
23. A good economic theory should capture as many details about real-world behavior as possible.
ANS: F PTS: 1 REF: p. 10
TOP: 1.3 Economic Theory | Economic Theories
© 2013 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from
the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
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