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Cengage Learning Testing, Powered by Cognero Page 1

• Since resources are abundant, we do not have to make choices about their use.
• True
• False

ANSWER: False

POINTS: 1

REFERENCES: p. 3

TOPICS: 1.1 Economics: A Brief Introduction | Economics—A Word with Many Different Meanings

• Economics is the study of choices we make among our many wants and desires.
• True
• False

ANSWER: True

POINTS: 1

REFERENCES: p. 3

TOPICS: 1.1 Economics: A Brief Introduction | Economics—A Word with Many Different Meanings

• It is possible to completely eliminate scarcity.
• True
• False

ANSWER: False

POINTS: 1

REFERENCES: p. 3-4

TOPICS: 1.1 Economics: A Brief Introduction | Economics—A Word with Many Different Meanings

• Scarcity applies to decision makers in macroeconomics but not in microeconomics.
• True
• False

ANSWER: False

POINTS: 1

REFERENCES: p. 3-4

TOPICS: 1.1 Economics: A Brief Introduction | Economics—A Word with Many Different Meanings

• Scarcity forces us to choose, and choices are costly because we must give up other opportunities that we value.
• True
• False

ANSWER: True

POINTS: 1

REFERENCES: p. 3-4

TOPICS: 1.1 Economics: A Brief Introduction | Economics—A Word with Many Different Meanings

• Wealthy consumers do not have to make decisions on what to buy or how much to save.
• True
• False

ANSWER: False

POINTS: 1

Chapter 1 (Exploring Microeconomics, 7e Robert L. Sexton) (Test Bank, For Complete File, Download link at the end of this File) 1 / 4

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REFERENCES: p. 4

TOPICS: 1.1 Economics: A Brief Introduction | Economics—A Word with Many Different Meanings

• If we choose more work we sacrifice leisure.
• True
• False

ANSWER: True

POINTS: 1

REFERENCES: p. 4-5

TOPICS: 1.1 Economics: A Brief Introduction | Economics Is All Around Us

• Living in a world of scarcity involves trade-offs.
• True
• False

ANSWER: True

POINTS: 1

REFERENCES: p. 5

TOPICS: 1.1 Economics: A Brief Introduction | Economics Is All Around Us

• Economists prefer to look at declared preferences (how they say they behave) rather than revealed preferences (how

people actually behave).

• True
• False

ANSWER: False

POINTS: 1

REFERENCES: p. 13

TOPICS: 1.3 Economic Theory | Economists and Survey Data

• 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.

• True
• False

ANSWER: True

POINTS: 1

REFERENCES: p. 13

TOPICS: 1.3 Economic Theory | The Two Branches of Economics: Microeconomics and Macroeconomics

• Microeconomics is the branch of economics in which you study inflation and unemployment in the economy.
• True
• False

ANSWER: False

POINTS: 1

REFERENCES: p. 13

TOPICS: 1.3 Economic Theory | The Two Branches of Economics: Microeconomics and Macroeconomics

• Microeconomics explores the allocation of scarce resources from the perspective of small economic units such as

consumers and firms. 2 / 4

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• True
• False

ANSWER: True

POINTS: 1

REFERENCES: p. 13

TOPICS: 1.3 Economic Theory | The Two Branches of Economics: Microeconomics and Macroeconomics

• Economists assume that most individuals act as if they are motivated by self-interest and respond in predictable ways

to changing circumstances.

• True
• False

ANSWER: True

POINTS: 1

REFERENCES: p. 6-7

TOPICS: 1.2 Economic Behavior | Self-Interest

• 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.

• True
• False

ANSWER: False

POINTS: 1

REFERENCES: p. 6-7

TOPICS: 1.2 Economic Behavior | Self-Interest

• Self-interest could never include benevolence.
• True
• False

ANSWER: False

POINTS: 1

REFERENCES: p. 7

TOPICS: 1.2 Economic Behavior | Self-Interest

• To an economist, individuals are acting "rationally" if they are striving to do their best to achieve their goals.
• True
• False

ANSWER: True

POINTS: 1

REFERENCES: p. 7

TOPICS: 1.2 Economic Behavior | What Is Rational Behavior?

• To an economist, rational self-interest means that individuals try to weigh the expected marginal (additional) benefits

and marginal (additional) costs of their decisions.

• True
• False

ANSWER: True

POINTS: 1 3 / 4

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REFERENCES: p. 7

TOPICS: 1.2 Economic Behavior | What Is Rational Behavior?

• When people make choices they typically know with certainty which choice is best.
• True
• False

ANSWER: False

POINTS: 1

REFERENCES: p. 7

TOPICS: 1.2 Economic Behavior | What Is Rational Behavior?

• Economists believe that most people's actions are rational and purposeful, not random and chaotic.
• True
• False

ANSWER: True

POINTS: 1

REFERENCES: p. 7

TOPICS: 1.2 Economic Behavior | What Is Rational Behavior?

• A good economic theory is always more useful when it includes detailed facts, even if the facts are not relevant to the

questions being investigated.

• True
• False

ANSWER: False

POINTS: 1

REFERENCES: p. 9-10

TOPICS: 1.3 Economic Theory | Economic Theories

• A good economic theory, or model, weeds out the irrelevant facts from the relevant ones.
• True
• False

ANSWER: True

POINTS: 1

REFERENCES: p. 9-10

TOPICS: 1.3 Economic Theory | Economic Theories

• Economic models are of limited use since they cannot be tested empirically.
• True
• False

ANSWER: False

POINTS: 1

REFERENCES: p. 10

TOPICS: 1.3 Economic Theory | Developing a Testable Proposition

• A hypothesis is a normative statement.
• True
• False
• / 4