Test Bank For Microeconomics Principles and Policy 12th Edition International Edition by Baumol William J
Chapter 1—What Is Economics?
TRUE/FALSE
- Both parties gain in a voluntary exchange.
ANS: T
PTS: 1 DIF: Easy NAT: Analytic
LOC: The Study of economics, and definitions in economics
TOP: Ideas for Beyond the Final Exam
- Even though international trade in undertaken voluntarily, a country that engages in trade may not benefit from it.
ANS: F
PTS: 1 DIF: Easy NAT: Analytic
LOC: The Study of economics, and definitions in economics
TOP: Ideas for Beyond the Final Exam
- In international trade, one country’s gain is another country’s loss.
ANS: F
PTS: 1 DIF: Easy NAT: Analytic
LOC: The Study of economics, and definitions in economics
TOP: Ideas for Beyond the Final Exam
- It is impossible for both nations to gain when trading with one other.
ANS: F
PTS: 1 DIF: Easy NAT: Analytic
LOC: The Study of economics, and definitions in economics
TOP: Ideas for Beyond the Final Exam
- In economics the true cost of making a choice is the value of what must be given up.
ANS: T
PTS: 1 DIF: Easy NAT: Analytic
LOC: The Study of economics, and definitions in economics
TOP: Ideas for Beyond the Final Exam
- Opportunity cost is the value of the next best alternative to a given choice.
ANS: T
PTS: 1 DIF: Easy NAT: Analytic
LOC: The Study of economics, and definitions in economics
TOP: Ideas for Beyond the Final Exam
- Opportunity cost is the highest possible price you can receive when you sell an object.
ANS: F
PTS: 1 DIF: Moderate NAT: Analytic
LOC: The Study of economics, and definitions in economics
TOP: Ideas for Beyond the Final Exam
- As a student, one of the costs of sleeping in rather than going to class is likely to be a lower grade in the class.
ANS: T
PTS: 1 DIF: Moderate NAT: Analytic
LOC: The Study of economics, and definitions in economics
TOP: Ideas for Beyond the Final Exam
- In her calculation of the cost of going to college, an economist would include the amount of forgone earnings over the years spent at college.
ANS: T
PTS: 1 DIF: Moderate NAT: Analytic
LOC: The Study of economics, and definitions in economics
TOP: Ideas for Beyond the Final Exam
- Government controls over market prices frequently “backfire.”
ANS: T
PTS: 1 DIF: Easy NAT: Analytic
LOC: The Study of economics, and definitions in economics
TOP: Ideas for Beyond the Final Exam
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