Test Bank For ECON Microeconomics 1st Edition by William A. McEachern
Chapter 1—The Art and Science of Economic Analysis
MULTIPLE CHOICE
- 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 |
ANS: A PTS: 1 DIF: Easy NAT: Analytic
LOC: The study of economics and definitions of economics
TOP: The Economic Problem: Scarce Resources | Unlimited Wants
- Economics studies how decision makers use scarce resources to satisfy unlimited wants.
| a. | True |
| b. | False |
ANS: A PTS: 1 DIF: Easy NAT: Analytic
LOC: The study of economics and definitions of economics
TOP: The Economic Problem: Scarce Resources | Unlimited Wants
- In economics, money is an example of capital.
| a. | True |
| b. | False |
ANS: B PTS: 1 DIF: Hard NAT: Analytic
LOC: The study of economics and definitions of economics
TOP: The Economic Problem: Scarce Resources | Unlimited Wants
- Profit is the payment received by resource owners for the use of their capital.
| a. | True |
| b. | False |
ANS: B PTS: 1 DIF: Moderate NAT: Analytic
LOC: The study of economics and definitions of economics
TOP: The Economic Problem: Scarce Resources | Unlimited Wants
- Rent is the payment received by resource owners for the use of their natural resources.
| a. | True |
| b. | False |
ANS: A PTS: 1 DIF: Moderate NAT: Analytic
LOC: The study of economics and definitions of economics
TOP: The Economic Problem: Scarce Resources | Unlimited Wants
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