Test Bank for ECON MICRO, 7th Edition by William A. McEachern All Chapters || Complete Guide A+
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Module
Micro economics
Institution
Micro Economics
Test Bank
Test Bank Test Bank for ECON MICRO, 7e 7th Edition by William A. McEachern, Veronika Dolar. Full Chapters are included with answers (Chapter 1 to 22) Part I: INTRODUCTION TO ECONOMICS. 1. The Art and Science of Economic Analysis. 2. Economic Tools and Economic Systems. 3. Economic Decisi...
TEST BANK
Test Bank for ECON MICRO, 7th Edition
JN
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Page 1
, William A.: Econ Micro
Chapter 01
Indicate whether the statement is true or false.
1. Resources consist of labor and natural resources.
True
False
ANSWER: False
2. The ceteris paribus assumption is the other-things-constant assumption.
True
False
ANSWER: True
3. Scarcity occurs when the amount people desire is less than the amount available at a zero price.
True
False
ANSWER: False
JN
4. Resources are used only in the production of goods, not services.
True
False
U
ANSWER: False
5. "There should be less discrimination against women" is an example of a positive economic statement.
R
True
False
SE
ANSWER: False
6. College graduates with history or literature as their major tend to earn more than those who choose more
quantitative disciplines like economics.
True
False
ANSWER: False
7. The fallacy of composition is the error of believing that a cause-and-effect relationship exists between two
events that are associated in time.
True
False
ANSWER: False
Page 2
,Name: Class: Date:
Chapter 01 ECON Micro7e
8. A marginal adjustment refers only to a minor change.
a. True
b. False
ANSWER: False
9. Rational self-interest is equivalent to pure selfishness.
True
False
ANSWER: False
10. "An increase in the price of cheese causes consumers to purchase more cheese" is an example of a positive
economic statement.
True
False
JN
ANSWER: True
11. Labor and capital are exchanged in the resource market.
True
U
False
ANSWER: True
R
12. Labor is the physical and mental effort used to produce goods and services.
True
SE
False
ANSWER: True
13. An economist would classify 500 shares of stock in General Mills, Inc. as capital.
True
False
ANSWER: False
14. A good economic theory brings clarity to chaos.
True
False
ANSWER: True
15. The ceteris paribus assumption is a behavioral assumption.
True
False
ANSWER: False
Page 3
, Name: Class: Date:
Chapter 01 ECON Micro7e
16. It is always rational to acquire more information before making a decision.
a. True
b. False
ANSWER: True
17. Most economists consider a theory a good one if it predicts well.
True
False
ANSWER: True
18. A rational individual would make charitable contributions only if such contributions receive favorable tax
treatment.
True
False
JN
ANSWER: False
19. Economics is as much an art as it is a science.
True
U
False
ANSWER: True
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20. Economic choice results from scarcity.
True
SE
False
ANSWER: True
21. A rational decision maker compares the expected marginal cost to the expected marginal benefit of any activity.
True
False
ANSWER: True
22. Most real economic choices involve small (or marginal) changes rather than all-or-nothing decisions.
True
False
ANSWER: True
23. Profit is the payment made for land resources.
True
False
ANSWER: False
Page 3
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