微观经济学的练习试题以和答案解析英文版

英文微观经济学试题及答案一、选择题（每题2分，共20分）1. Which of the following is not a characteristic of a perfectly competitive market?A. Many buyers and sellersB. Homogeneous productsC. Free entry and exitD. Monopoly powerAnswer: D2. The law of diminishing returns states that:A. The total product of labor increases as more labor is addedB. The marginal product of labor eventually decreases as more labor is addedC. The average product of labor is always higher than the marginal productD. The marginal product of labor is always higher than the average productAnswer: B3. In the short run, a firm in a perfectly competitive market will shut down if:A. Total revenue is greater than total variable costB. Total revenue is less than total costC. Total revenue is less than total variable costD. Total revenue is less than average total costAnswer: C4. The demand for a good is likely to be more elastic when:A. The good has many close substitutesB. The good is a luxury itemC. The good is a necessityD. The good represents a small proportion of consumer's incomeAnswer: A5. The consumer surplus is the difference between:A. The maximum price a consumer is willing to pay and the market priceB. The market price and the minimum price a consumer is willing to payC. The maximum price a consumer is willing to pay and the minimum price a consumer is willing to payD. The minimum price a consumer is willing to pay and the market priceAnswer: A...（此处省略其他选择题）二、简答题（每题10分，共30分）1. Explain the concept of price elasticity of demand and itsdeterminants.Answer: Price elasticity of demand measures the responsiveness of the quantity demanded of a good to a change in its price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price. The determinants of price elasticity include the availability of substitutes, the proportion of income spent on the good, the necessity of the good, and the time period over which the demand is being considered.2. What is the difference between a normal good and aninferior good?Answer: A normal good is a good for which the demand increases as income increases, while the demand for aninferior good decreases as income increases. This is because normal goods are typically considered desirable or of higher quality, while inferior goods are seen as lower quality substitutes that consumers prefer to avoid as their income increases.3. Define the law of supply and give an example.Answer: The law of supply states that, all else being equal, the quantity supplied of a good will increase as the price of the good increases, and decrease as the price of the good decreases. An example of this would be the supply of oil; if the price of oil rises, producers are more likely to increase production and supply more oil to the market.三、计算题（每题25分，共50分）1. A firm has the following total cost function: TC = 0.5Q^2 - 4Q + 100. Calculate the firm's average total cost (ATC) and marginal cost (MC) at the quantity level of Q = 50.Answer:To find the average total cost (ATC), we divide the total cost (TC) by the quantity (Q):\[ ATC = \frac{TC}{Q} = \frac{0.5Q^2 - 4Q + 100}{Q} \]At Q = 50:\[ ATC = \frac{0.5(50)^2 - 4(50) + 100}{50} = \frac{1250}{50} = 25 \]The marginal cost (MC) is the derivative of the total cost function with respect to quantity:\[ MC = \frac{dTC}{dQ} = 0.5 \times 2Q - 4 \]At Q = 50:\[ MC = 0.5 \times 2 \times 50 - 4 = 50 - 4 = 46 \]2. A monopolist faces the demand function P = 100 - 2Q and has a total cost function TC = 10Q. Calculate the profit-maximizing level of output and the corresponding price.Answer:First, calculate the marginal revenue (MR) by taking the derivative of the total revenue (TR) with respect to Q. TR is P*Q, so:\[ TR = (100 -。

微观经济学英⽂版9-14章⾃测题及答案第九章⾃测题：1. If the world price of a product is higher than a country’s domestic price we know that countrya. should import that product.b. should no longer produce that product.c. has a comparative advantage in that product.d. could benefit by imposing a tariff on that product.2. Which of the following is NOT a benefit of trade?a. an increased variety of goodsb. lower costs through economies of scalec. increased competitiond. an ability to control domestic and world prices3. When a country allows trade and becomes an exporter of a good, domestic producersa. gain and domestic consumers lose.b. lose and domestic consumers gain.c. and domestic consumers both gain.d. and domestic consumers both lose.4. The world price of yo-yo’s is $4.00 each. The pre-trade price of yo-yo’s in Taiwan is $3.50 each. If Taiwan allows trade in yo-yo’s we know that Taiwan willa. import yo-yo’s and the price in Taiwan will be $4.00 each.b. import yo-yo’s and the price in Taiwan will be $3.50 each.c. export yo-yo’s and the price in Taiwan will be $4.00 each.d. export yo-yo’s and the price in Taiwan will be $3.50 each.5. When a country moves from a free trade position and imposes a tariff on imports, this causesa. a decrease in total surplus in the market.b. a decrease in producer surplus in the market.c. an increase in consumer surplus in the market.d. a decrease in revenue to the government.6. A tariff and an import quota will botha. increase the quantity of imports and raise domestic price.b. increase the quantity of imports and lower domestic price.c. reduce the quantity of imports and raise domestic price.d. reduce the quantity of imports and lower domestic price.7. The major difference between tariffs and import quotas is thata. tariffs create deadweight losses, but import quotas do not.b. tariffs help domestic consumers, and import quotas help domestic producers.c. tariffs raise revenue for the government, but import quotas create a surplus for import license holders.d. All of the above are correct.8. According to the graph, consumer surplusin this market before trade would bea. A.b. B + C.c. A + B + D.d. C.9. According to the graph, consumer surplusin this market after trade would bea. A.b. C + B.c. A + B + D.d. B + C + D.10. According to the graph, the change in total surplus in this market because of trade isa. Ab.Bc. Cd. D参考答案：1.c2.d3.a4.c5.a6.c7.c8.a9.c 10.d第⼗章⾃测题：1. An externality is the impact ofa. society’s decisions on the well-being of society.b. a person’s actions on that person’s well-being.c. one person’s actions on the well-being of a bystander.d. society’s decisions on the well-being of one person in the society2. If education produces positive externalities we would expecta. government to tax education.b. government to subsidize education.c. people to realize the benefits and therefore cause demand for education to increase.d. colleges to relax admission requirements.3. When a negative externality exists in a market the cost to producersa. is greater than the cost to society.b. will be the same as the cost to society.c. will be less than the cost to society.d. and society will be different regardless of whether an externality is present.4. Internalizing an externality refers to makinga. buyers and sellers take into account the external effects of their actions.b. certain that all market transaction benefits go to only buyers and sellers.c. certain government does not disrupt the internal workings of the market.d. buyers pay the full price for the products they purchase.5. Technology spillover is one type ofa. negative externality.b. positive externality.c. subsidy.d. producer surplus.6. According to the Coase theorem, private markets will solve externality problems and allocate resources efficiently as long asa. private parties can bargain without cost.b. government assigns property rights to the harmed party.c. the externalities that are present are positive and not negative.d. businesses determine an appropriate level of production.7. Pigovian taxes are typically advocated to correct for the effects ofa. positive externalities.b. negative externalities.c. regulatory burden.d. All of the above are correct.8. If the government were to limit the release of air-pollution produced by a steel mill to 10,000 units, this policy would be considered aa. regulation.b. Pigovian tax.c. subsidy.d. market-based policy.9. When one firm sells its pollution permit to another firm, which of the following does NOT occur?a. Both firms benefit.b. The total amount of pollution remains the same.c. Social welfare is enhanced.d. Over time, pollution will be eliminated.10. Which of the following policies is government most inclined to use when faced with a positive externality?a. taxationb. permitsc. subsidiesd. usage fees参考答案：1.c2.b3.c4.a5.b6.a7.b8.a9.d 10.c第⼗⼀章⾃测题1. Goods that are excludable include botha. natural monopolies and public goods.b. public goods and common resources.c. common resources and private goods.d. private goods and natural monopolies.2. Which of the following would be considered a private good?a. national defenseb. a public beachc. local cable television serviced. a bottle of natural mineral water3. The government provides public goods becausea. private markets are incapable of producing public goods.b. free-riders make it difficult for private markets to supply the socially optimal quantity.c. markets are always better off with some government oversight.d. external benefits will occur to private producers.4. The difference between technological knowledge and general knowledge is thata. general knowledge creation is usually more profitable for the creator.b. technological knowledge is excludable and general knowledge is not.c. general knowledge is excludable and technological knowledge is not.d. general knowledge is rival and technological knowledge is not.5. A lighthouse is typically considered a good example of a public good becausea. the owner of the lighthouse is able to exclude beneficiaries from enjoying the lighthouse.b. there is rarely another lighthouse nearby to provide competition.c. a nearby port authority cannot avoid paying fees to the lighthouse owner.d. all passing ships are able to enjoy the benefits of the lighthouse without paying.6. The Tragedy of the Commons results when a good isa. rival and not excludable.b. excludable and not rival.c. both rival and excludable.d. neither rival nor excludable.7. If the use of a common resource is not regulated,a. it cannot be used by anyone.b. the economy will end up with too much of a good thing.c. it becomes a private good.d. it will be overused.8. Government may be able to solve the problem of overuse of a common resource by doing each of the following EXCEPTa. regulating the use or consumption of the common resource.b. taxing the use or consumption of the common resource.c. selling the common resource to a private entity.d. allowing individuals to voluntarily reduce their use of the resource.9. Why do elephants face the threat of extinction while cows do not?a. Cattle are a valuable source of income for many people and elephants have no market value.b. There is a high demand for products that come only from the cow.c. There are still lots of cattle that roam free, while most elephants are in zoos.d. Cattle are owned by ranchers, while elephants are owned by no one.10. Excessive fishing occurs becausea. each individual fisherman has little incentive to maintain the species for the next year.b. fishermen rely on government managers to worry about fish populations.c. fishermen are concerned about the population dynamics of fish biomass, not current harvest rates.d. fishermen have other marketable skills and do not fear exploitation of fish reserves.参考答案：1.d2.d3.b4.b5.d6.a7.d8.d9.d 10.a第⼗⼆章⾃测题1. Which of the following is an implicit cost?(i) the owner of a firm forgoing an opportunity to earn a large salary working for a Wall Street brokerage firm(ii) interest paid on th e firm’s debt(iii) rent paid by the firm to lease office spacea. (ii) and (iii)b. (i) and (iii)c. (i) onlyd. All of the above are correct.2. John owns a shoe-shine business. His accountant most likely includes which of the following costs on his financial statements?a. wages John could earn washing windowsb. dividends John’s money was earning in the stock market before John sold his stock and bought a shoe-shine boothc. the cost of shoe polishd. All of the above are correct.3. Economic profita. will never exceed accounting profit.b. is most often equal to accounting profit.c. is always at least as large as accounting profit.d. is a less complete measure of profitability than accounting profit.4. Zach took $500,000 out of the bank and used it to start his new cookie business. The bankaccount pays 4 percent interest per year. During the first year of his business, Zach sold 12,000 boxes of cookies for $3 per box. Also, during the first year, the cookie business incurred costs that required outl ays of money amounting to$14,000.Zach’s economic profit for the year wasa. $–478,000.b. $–56,000.c. $2,000.d. $22,000.5. The marginal product of labor is equal to thea. incremental cost associated with a one unit increase in labor.b. incremental profit associated with a one unit increase in labor.c. increase in labor necessary to generate a one unit increase in output.d. increase in output obtained from a one unit increase in labor.6. Suppose Jan is starting up a small lemonade stand business. Va riable costs for Jan’s lemonade stand would include the cost ofa. building the lemonade stand.b. hiring an artist to design a logo for her sign.c. lemonade mix.d. All of the above are correct.7. Variable cost divided by quantity produced isa. average total cost.b. marginal cost.c. profit.d. None of the above are correct.8. The average fixed cost curvea. always declines with increased levels of output.b. always rises with increased levels of output.c. declines as long as it is above marginal cost.d. declines as long as it is below marginal cost.9. The efficient scale of the firm is the quantity of output thata. maximizes marginal product.b. maximizes profit.c. minimizes average total cost.d. minimizes average variable cost.10. Average total cost is increasing whenevera. total cost is increasing.b. marginal cost is increasing.c. marginal cost is less than average total cost.d. marginal cost is greater than average total cost.11. Which of the following expressions is correct?a. marginal cost = (change in quantity of output)/(change in total cost).b. average total cost = total cost/quantity of output.c. total cost = variable cost + marginal cost.d. All of the above are correct.12. Which of the following must always be true as the quantity of output increases?a. Marginal cost must rise.b. Average total cost must rise.c. Average variable cost must rise.d. Average fixed cost must fall.13. In the long run,a. inputs that were fixed in the short run remain fixed.b. inputs that were fixed in the short run become variable.c. inputs that were variable in the short run become fixed.d. variable inputs are rarely used.14. The length of the short runa. is different for different types of firms.b. can never exceed 3 years.c. can never exceed 1 year.d. is always less than 6 months.15. Economies of scale occur whena. long-run average total costs rise as output increases.b. long-run average total costs fall as output increases.c. average fixed costs are falling.d. average fixed costs are constant.16. Long-run average total cost curves are often U-shapeda. for the same reasons that average total cost curves are often U-shaped.b. because of constant returns to scale.c. because of increasing coordination problems at low levels of production and increasing specialization of workers at high levels of production.d. because of increasing specialization of workers at low levels of production and increasing coordination problems at high levels of production.参考答案：1.c2.c3.a4.c5.d6.c7.d8.a9.c 10.d 11.b 12.d 13.b 14.a 15.b 16.d第⼗三章⾃测题：1. For a firm in a perfectly competitive market, the price of the good is alwaysa. equal to marginal revenue.b. equal to total revenue.c. greater than average revenue.d. All of the above are correct.2. Which of the following is NOT a characteristic of a perfectly competitive market?a. Firms are price takers.b. Firms have difficulty entering the market.c. There are many sellers in the market.d. Goods offered for sale are largely the same.3. When a competitive firm triples the amount of output it sells,a. its total revenue triples.b. its average revenue triples.c. its marginal revenue triples.d. All of the above are correct.4. When a profit-maximizing firm in a competitive market has zero economic profit, accounting profita. is negative (accounting losses).b. is positive.c. is also zero.d. could be positive, negative or zero.5. For a competitive firm,a. Total revenue = Average revenue.b. Total revenue = Marginal revenue.c. Total cost = Marginal revenue.d. Average revenue = Marginal revenue.6. If marginal cost exceeds marginal revenue, the firma. is most likely to be at a profit-maximizing level of output.b. should increase the level of production to maximize its profit.c. must be experiencing losses.d. may still be earning a profit.7. When price is greater than marginal cost for a firm in a competitive market,a. marginal cost must be falling.b. the firm must be minimizing its losses.c. there are opportunities to increase profit by increasing production.d. the firm should decrease output to maximize profit.8. When fixed costs are ignored because they are irrelevant to a business’s production decision, they are calleda. explicit costs.b. implicit costs.c. sunk costs.d. opportunity costs.9. When a firm makes a short-run decision not to produce anything during a specified period of time because of current market conditions, the firm is said toa. shut down.b. exit.c. withdraw.d. leave the industry.10. Profit-maximizing firms enter a competitive market when, for existing firms in that market,a. total revenue exceeds fixed costs.b. total revenue exceeds total variable costs.c. average total cost exceeds average revenue.d. price exceeds average total cost.11. A firm’s short-run supply curve is part of which of the following curves?a. marginal revenueb. average variable costc. average total costd. marginal cost12. Suppose you bought a ticket to a football game for $30, and that you place a $35 value on seeing the game. If you lose the ticket, then what is the maximum price you should pay for another ticket?a. $30b. $35c. $60d. $6513. When new firms have an incentive to enter a competitive market, their entry willa. increase the price of the product.b. drive down profits of existing firms in the market.c. shift the market supply curve to the left.d. All of the above are correct.14. In a perfectly competitive market, the process of entry and exit will end when, for firms in the market,a. price is equal to average variable cost.b. marginal revenue is equal to average variable cost.c. economic profits are zero.d. All of the above are correct.15. In a competitive market that is characterized by free entry and exit,a. all firms will operate at efficient scale in the short run.b. all firms will operate at efficient scale in the long run.c. the price of the product will differ across firms.d. the number of sellers in the market will steadily decrease over time.16. The assumption of a fixed number of firms is appropriate for analysis ofa. the short run, but not the long run.b. the long run, but not the short run.c. both the short run and the long run.d. neither the short run nor the long run.参考答案：1.a2.b3.a4.b5.d6.d7.c8.c9.a 10.d 11.d 12.b 13.b 14.c 15.b 16.a第⼗四章⾃测题：1. Which of the following statements is correct?a. A competitive firm is a price maker and a monopoly is a price taker.b. A competitive firm is a price taker and a monopoly is a price maker.c. Both competitive firms and monopolies are price takers.d. Both competitive firms and monopolies are price makers.2. Which of the following is an example of a barrier to entry?(i) A key resource is owned by a single firm.(ii) The costs of production make a single producer more efficient than a large number of producers. (iii) The government has given the existing monopoly the exclusive right to produce the good.a. (i) and (ii)b. (ii) and (iii)c. (i) onlyd. All of the above are correct.3. The defining characteristic of a natural monopoly isa. constant marginal cost over the relevant range of output.b. economies of scale over the relevant range of output.c. constant returns to scale over the relevant range of output.d. diseconomies of scale over the relevant range of output.4. Patent and copyright laws are major sources ofa. natural monopolies.b. government-created monopolies.c. resource monopolies.d. None of the above are correct.5. The De Beers diamond monopoly is a classic example of a monopoly thata. is government-created.b. arises from the ownership of a key resource.c. results in very little advertising of the product that the monopolist produces.d. was broken up by the government a long time ago.6. In order to sell more of its product, a monopolist musta. sell to the government.b. sell in international markets.c. lower its price.d. use its market power to force up the price of complementary products.7. For a profit-maximizing monopolist,a. P＞MR = MC.b. P = MR = MC.c. P ＞MR ＞MC.d. MR ＜MC ＜P.8. For a monopoly, the supply curve is a portion of itsa. marginal revenue curve.b. marginal cost curve.c. average total cost curve.d. none of the above; a monopoly does not have a supply curve.9. What is the monopolist’s profit under the following conditions? The profit-maximizing price charged for goods produced is $16. The intersection of the marginal revenue and marginal cost curves occurs where output is 10 units and marginal cost is $8. Average total cost for 10 units of output is $6.a. $20b. $80c. $100d. $16010. Antitrust laws allow the government toa. prevent mergers.b. break up companies.c. promote competition.d. All of the above are correct.参考答案：1.b2.d3.b4.b5.b6.c7.a8.d9.c 10.d。

Chapter 01Thinking Like an Economist Multiple Choice Questions1. Economics is best defined as the study of:A. prices and quantities.B. inflation and interest rates.C. how people make choices under the conditions of scarcity and the results of those choices.D. wages and incomes.2. Economic questions always deal with:A. financial matters.B. political matters.C. insufficient resources.D. choice in the face of limited resources.3. The range of topics or issues that fit within the definition of economics is:A. limited to market activities, e.g., buying soap.B. limited to individuals and firms.C. extremely wide, requiring only the ideas of choice and scarcity.D. very limited.4. The central concern of economics is:A. poverty.B. scarcity.C. wealth accumulation.D. overconsumption.5. The scarcity principle indicates that:A. no matter how much one has, it is never enough.B. compared to 100 years ago, individuals have less time today.C. with limited resources, having more of "this" means having less of "that."D. because tradeoffs must be made, resources are therefore scarce.6. The logical implication of the scarcity principle is that:A. one will never be satisfied with what one has.B. as wealth increases, making choices becomes less necessary.C. as wealth decreases, making choices becomes less necessary.D. choices must be made.7. If all the world's resources were to magically increase a hundredfold, then:A. the scarcity principle would still govern behavior.B. economics would no longer be relevant.C. the scarcity principle would disappear.D. tradeoffs would become unnecessary.8. The principle of scarcity applies to:A. the poor exclusively.B. all consumers.C. all firms.D. everyone—consumers, firms, governments, and nations.9. At the very least, Joe Average and Bill Gates are both identically limited by:A. their wealth.B. the 24 hours that comprise a day.C. their knowledge.D. their influence.10. Forest is a mountain man living in complete isolation in Montana. He is completely self-sufficient through hunting, fishing, and farming. He has not been in the city to buy anything in five years. One can infer:A. the scarcity principle does not apply to Forest.B. Forest is not required to make choices.C. the scarcity principle still applies because more hunting means less fishing and farming.D. Forest is very satisfied.11. The scarcity principle applies to:A. all decisions.B. only market decisions, e.g., buying a car.C. only non-market decisions, e.g., watching a sunset.D. only the poor.12. Chris has a one-hour break between classes every Wednesday. Chris can either stay at the library and study or go to the gym and work out. The decision Chris must make is:A. not an economic problem because neither one costs money.B. not an economic problem because it's an hour that is wasted no matter what Chris does.C. an economic problem because the tuition Chris pays covers both the gym and the library.D. an economic problem because Chris has only one hour during which he can study or work out.13. Josh wants to go to the football game this weekend, but he has a paper due on Monday. It will take him the whole weekend to write the paper. Josh decided to stay home and work on the paper. According to the scarcity principle, the reason Josh didn't go to the game is that:A. Josh prefers schoolwork to football games.B. writing the paper is easier than going to the game.C. Josh doesn't have enough time for writing the paper and going to the game.D. it's too expensive to go to the game.14. Whether studying the size of the U.S. economy or the number of children a couple will choose to have, the unifying concept is that wants are:A. limited, resources are limited, and thus choices must be made.B. unlimited, resources are limited, and thus choices must be made.C. unlimited, resources are limited to some but not to others, and thus some people must make choices.D. unlimited, resources are limited, and thus government needs to do more.15. The cost-benefit principle indicates that an action should be taken:A. if the total benefits exceed the total costs.B. if the average benefits exceed the average costs.C. if the net benefit (benefit minus cost) is zero.D. if the extra benefit is greater than or equal to the extra costs.16. When a person decides to pursue an activity as long as the extra benefits are at least equal to the extra costs, that person is:A. violating the cost-benefit principle.B. following the scarcity principle.C. following the cost-benefit principle.D. pursuing the activity too long.17. Choosing to study for an exam until the extra benefit (improved score) equals the extra cost (mental fatigue) is:A. not rational.B. an application of the cost-benefit principle.C. an application of the scarcity principle.D. the relevant opportunity cost.18. The scarcity principle tells us that __________, and the cost-benefit principle tells us __________.A. choices must be made; how to make the choicesB. choices must be made; that the costs can never outweigh the benefits of the choicesC. rare goods are expensive; that the costs should outweigh the benefits of the choicesD. rare goods are expensive; that the costs can never outweigh the benefits of the choices19. According to the cost-benefit principle:A. the lowest cost activity usually gives the lowest benefit.B. a person should always choose the activity with the lowest cost.C. a person should always choose the activity with the greatest benefit.D. the extra costs and benefits of an activity are more important considerations than the total costs and benefits.20. A rational person is one who:A. is reasonable.B. makes choices that are easily understood.C. possesses well-defined goals and seeks to achieve them.D. is highly cynical.21. The seventh glass of soda that Tim consumes will produce an extra benefit of 10 cents and has an extra cost of zero (Tim is eating at the cafeteria). The cost-benefit principle predicts that Tim will:A. realize he has had too much soda to drink and go home.B. drink the seventh glass and continue until the marginal benefit of drinking another glass of soda is zero.C. volunteer to empty out the fountain.D. not drink the seventh glass.22. Janie must either mow the lawn or wash clothes, earning her a benefit of $30 or $45, respectively. She dislikes both equally and they both take the same amount of time. Janie will therefore choose to _________ because the economic surplus is ________.A. mow the lawn; greaterB. wash clothes; greaterC. mow the lawn; smallerD. wash clothes; smaller23. Dean decided to play golf rather than prepare for tomorrow's exam in economics. One can infer that:A. Dean has made an irrational choice.B. Dean is doing poorly in his economics class.C. the economic surplus from playing golf exceeded the surplus from studying.D. the cost of studying was less than the cost of golfing.Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year.24. The opportunity cost of attending Elite U is:A. $50,000B. $10,000C. $20,000D. $15,00025. The opportunity cost of attending State College is:A. $30,000B. $20,000C. $15,000D. $10,00026. Larry maximizes his surplus by attending:A. Elite U, because $60,000 is greater than the benefit at the other schools.B. State College, because the difference between the benefit and cost is greatest there.C. NoName U, because Larry has a full scholarship there.D. Elite U, because the opportunity costs of attending Elite U are the lowest.27. Larry has decided to go to Elite U. Assuming that all of the values described are correct, for Larry to decide on Elite U, he must have:A. calculated his surplus from each choice and picked the one with the highest surplus.B. underestimated the benefits of attending NoName.C. miscalculated the surplus of attending Elite U.D. determined the opportunity cost of each choice and picked the one with the lowest opportunity cost.28. Jen spends her afternoon at the beach, paying $1 to rent a beach umbrella and $11 for food and drinks rather than spending an equal amount of money to go to a movie. The opportunity cost of going to the beach is:A. the $12 she spent on the umbrella, food and drinks.B. only $1 because she would have spent the money on food and drinks whether or not she went to the beach.C. the movie she missed seeing.D. the movie she missed seeing plus the $12 she spent on the umbrella, food and drinks.29. Relative to a person who earns minimum wage, a person who earns $30 per hour has:A. a lower opportunity cost of working longer hours.B. a higher opportunity cost of taking a day off.C. a lower opportunity cost of driving farther to work.D. the same opportunity cost of spending time on leisure activities.30. The opportunity cost of an activity is the value of:A. an alternative forgone.B. the next-best alternative forgone.C. the least-best alternative forgone.D. the difference between the chosen activity and the next-best alternative forgone.31. Amy is thinking about going to the movies tonight. A ticket costs $7 and she will have to cancel her dog-sitting job that pays $30. The cost of seeing the movie is:A. $7.B. $30.C. $37.D. $37 minus the benefit of seeing the movie.32. Economic surplus is:A. the benefit gained by taking an action.B. the price paid to take an action.C. the difference between the benefit gained and the cost incurred of taking an action.D. the wage someone would have to earn in order to take an action.33. The Governor of your state has cut the budget for the University and increased spending on Medicaid. This is an example of:A. the pitfalls of considering average costs instead of marginal costs.B. poor normative economic decision making.C. poor positive economic decision making.D. choice in the face of limited resources.34. Sally earned $25,000 per year before she became a mother. After she became a mother, she told her employer that her opportunity cost of working is now $50,000, and so she is not willing to work for anything less. Her decision is based on:A. the high cost of raising a child.B. her desire to save for her child's college expenses.C. her increased value to her employer.D. the value she places on spending time with her child.35. Alex received a four-year scholarship to State U. that covered tuition and fees, room and board, and books and supplies. As a result:A. attending State U. for four years is costless for Alex.B. Alex has no incentive to work hard while at State U.C. the cost of attending State U. is the amount of money Alex could have earned working for four years.D. the cost of attending State U. is the sum of the benefits Alex would have had attending each of the four other schools to which Alex had been admitted.36. Suppose Mary is willing to pay up to $15,000 for a used Ford pick-up truck, but she finds one for $12,000. Her __________ is __________.A. benefit; $12,000B. cost; $15,000C. economic surplus; $3,000D. economic surplus; $12,00037. In general, rational decision making requires one to choose the actions that yield the:A. largest total benefits.B. smallest total costs.C. smallest net benefits.D. largest economic surpluses.38. Suppose the most you would be willing to pay for a plane ticket home is $250, but you buy one online for $175. The economic surplus of buying the online ticket is:A. $175.B. $250.C. $75.D. $0.39. The use of economic models, like the cost-benefit principle, means economists believe that:A. this is exactly how people choose between alternatives.B. this is a reasonable abstraction of how people choose between alternatives.C. those who explicitly make decisions this way are smarter.D. with enough education, all people will start to explicitly make decisions this way.40. Jenna decides to see a movie that costs $7 for the ticket and has an opportunity cost of $20. After the movie, she says to one of her friends that the movie was not worth it. Apparently:A. Jenna failed to apply the cost-benefit model to her decision.B. Jenna was not rational.C. Jenna overestimated the benefits of the movie.D. Jenna underestimated the benefits of the movie.41. Most of us make sensible decisions most of the time, because:A. we know the cost-benefit principle.B. subconsciously we are weighing costs and benefits.C. most people know about the scarcity principle.D. we conduct hypothetical mental auctions when we make decisions.42. Suppose a person makes a choice that seems inconsistent with the cost-benefit principle. Which of the following statements represents the most reasonable conclusion to draw?A. The person (explicitly or implicitly) over-estimated the benefits or under-estimated the costs or both.B. The cost-benefit principle is rarely true.C. The person does not grasp how decisions should be made.D. The person is simply irrational.43. Economic models are intended to:A. apply to all examples equally well.B. eliminate differences in the way people behave.C. generalize about patterns in decision-making.D. distinguish economics students from everyone else.44. Economic models claim to be:A. reasonable abstractions of how people make choices, highlighting the most important factors.B. exact replications of the decision-making process people use.C. interesting chalkboard exercises with little applicability to the real world.D. exceptionally accurate methods of predicting nearly all behavior of everyone.45. The cost-benefit model used by economists is:A. unrealistic because it is too detailed and specific to apply to a variety of situations.B. unrealistic because everyone can think of times when he or she violated the principle.C. useful because everyone follows it all of the time.D. useful because most people follow it most of the time.46. Barry owns a clothing store in the mall and has asked two economic consultants to develop models of consumer behavior that he can use to increase sales. Barry should choose the model that:A. does not include simplifying assumptions.B. is the most detailed and complex.C. assumes that consumers apply the cost-benefit principle.D. predicts that consumers will always prefer Barry's store to the competing stores.47. Economists use abstract models because:A. every economic situation is unique, so it is impossible to make generalizations.B. every economic situation is essentially the same, so specific details are unnecessary.C. they are useful for describing general patterns of behavior.D. computers have allowed economists to develop abstract models.48. Most people make some decisions based on intuition rather than calculation. This is:A. irrational, because intuition is often wrong.B. consistent with the economic model of decision-making, because calculating costs and benefits leads to decision-making pitfalls.C. consistent with the economic model because people intuitively compare the relative costs and benefits of the choices they face.D. inconsistent with the economic model, but rational because intuition takes into account non-financial considerations.49. Moe has a big exam tomorrow. He considered studying this evening, but decided to go out with Curly instead. Since Moe always chooses rationally, it must be true that: A. the opportunity cost of studying tonight is less than the value Moe gets from spending time with Curly.B. the opportunity cost of studying tonight is equal to the value Moe gets from spending time with Curly minus the cost of earning a low grade on the exam.C. Moe gets more benefit from spending time with Curly than from studying.D. Moe gets less benefit from spending time with Curly than from studying.50. If one fails to account for implicit costs in decision making, then applying thecost-benefit rule will be flawed because:A. the benefits will be overstated.B. the costs will be understated.C. the benefits will be understated.D. the costs will be overstated.Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfares are $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1400. Your only alternative use for your frequent-flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round-trip airfares are $450.51. If you do not use the frequent-flyer coupon to fly, should you go to Miami?A. Yes, your benefit is more than your cost.B. No, your benefit is less than your cost.C. Yes, your benefit is equal to your cost.D. No, because there are no benefits in the trip.52. What is the opportunity cost of using the coupon for the Miami trip?A. $100B. $450C. $500D. $55053. If you use the frequent-flyer coupon to fly to Atlanta, would you get any economic surplus by making the trip?A. No, there is a loss of $50.B. Yes, surplus of $350.C. Yes, surplus of $400.D. Yes, surplus of $100.54. If the Chicago-Atlanta round-trip air fare is $350, should you go to Miami?A. No, there is a loss of $50.B. No, there is a loss of $100.C. Yes, there is economic surplus of $50.D. Yes, there is economic surplus of $400.55. Pat earns $25,000 per year (after taxes), and Pat's spouse, Chris, earns $35,000 (after taxes). They have two pre-school children. Childcare for their children costs $12,000 per year. Pat has decided to stay home and take care of the children. Pat must:A. value spending time with the children by more than $25,000.B. value spending time with the children by more than $12,000.C. value spending time with the children by more than $13,000.D. value spending time with the children as much as does Chris.You paid $35 for a ticket (which is non-refundable) to see SPAM, a local rock band, in concert on Saturday. (Assume that you would not have been willing to pay any more than $35 for this concert.) Your boss called and she is looking for someone to cover a shift on Saturday at the same time as the concert. You will have to work 4 hours and she will pay you time and a half, which is $9/hr.56. Should you go to the concert instead of working Saturday?A. Yes, your benefit is more than your cost.B. No, your benefit is less than your cost.C. Yes, your benefit is equal to your cost.D. No, because there are no benefits in the concert.57. What is the opportunity cost of going to the concert?A. $1B. $9C. $35D. $3658. What is your opportunity cost, if you go to work on Saturday?A. $0B. $9C. $35D. $3659. Your economic surplus of going to work on Saturday is:A. $0B. $1C. $35D. $36Matt has decided to purchase his textbooks for the semester. His options are to purchase the books via the Internet with next day delivery to his home at a cost of $175, or to drive to campus tomorrow to buy the books at the university bookstore at a cost of $170. Last week he drove to campus to buy a concert ticket because they offered 25 percent off the regular price of $16.因为他们提供75折的正常价格16美元。

微观经济学试题及答案英文Microeconomics Exam Questions and AnswersQuestion 1: Define the law of demand and explain how itrelates to the concept of price elasticity of demand.Answer 1: The law of demand states that, all else being equal, the quantity demanded of a good or service will decrease asthe price increases. Price elasticity of demand measures the responsiveness of the quantity demanded to a change in price. If the quantity demanded changes significantly in response to a price change, the demand is said to be elastic. Conversely, if the quantity demanded changes very little, the demand is inelastic.Question 2: What is the difference between a firm's total revenue and marginal revenue?Answer 2: Total revenue is the total income received by afirm from selling its product, calculated as the price perunit multiplied by the quantity sold. Marginal revenue, onthe other hand, is the additional revenue generated fromselling one more unit of the product. It is the change intotal revenue divided by the change in quantity sold. In a perfectly competitive market, marginal revenue equals the price, but in a market with some degree of monopoly power, marginal revenue is less than the price.Question 3: Explain the concept of consumer surplus and howit is calculated.Answer 3: Consumer surplus is the difference between what consumers are willing to pay for a good or service and what they actually pay. It is a measure of the welfare gain to consumers from participating in a market. It is calculated by finding the area under the demand curve but above the market price, which represents the total amount consumers would have been willing to pay for each unit up to the quantity they actually purchase.Question 4: What is the marginal cost and how does it relateto a firm's decision to produce?Answer 4: Marginal cost is the cost of producing oneadditional unit of a good or service. It is the change intotal cost resulting from producing one more unit. Firms will continue to produce additional units as long as the marginal cost is less than the marginal revenue. If the marginal cost exceeds the marginal revenue, the firm will reduce production, as producing one more unit would result in a loss.Question 5: Define economies of scale and explain how they affect a firm's cost structure.Answer 5: Economies of scale refer to the cost advantagesthat a firm experiences when it increases its level of output. As the scale of production increases, the average cost perunit of output decreases due to factors such as spreadingfixed costs over more units, specialization of labor, andbulk purchasing discounts. This can lead to lower per-unit costs and potentially higher profits.Question 6: What is the difference between a normal good and an inferior good?Answer 6: A normal good is a good for which the demand increases as consumers' income increases. In contrast, an inferior good is a good for which the demand decreases as consumers' income increases. This is because consumers tend to substitute inferior goods with superior or higher-quality goods when their income rises.End of ExamPlease note that this is a sample set of microeconomics exam questions and answers. The actual content of an exam would depend on the specific topics covered in the course and the level of difficulty desired by the instructor.。

Chapter 01Thinking Like an Economist Multiple Choice Questions1. Economics is best defined as the study of:A. prices and quantities.B. inflation and interest rates.C. how people make choices under the conditions of scarcity and the results of those choices.D. wages and incomes.2. Economic questions always deal with:A. financial matters.B. political matters.C. insufficient resources.D. choice in the face of limited resources.3. The range of topics or issues that fit within the definition of economics is:A. limited to market activities, e.g., buying soap.B. limited to individuals and firms.C. extremely wide, requiring only the ideas of choice and scarcity.D. very limited.4. The central concern of economics is:A. poverty.B. scarcity.C. wealth accumulation.D. overconsumption.5. The scarcity principle indicates that:A. no matter how much one has, it is never enough.B. compared to 100 years ago, individuals have less time today.C. with limited resources, having more of "this" means having less of "that."D. because tradeoffs must be made, resources are therefore scarce.6. The logical implication of the scarcity principle is that:A. one will never be satisfied with what one has.B. as wealth increases, making choices becomes less necessary.C. as wealth decreases, making choices becomes less necessary.D. choices must be made.7. If all the world's resources were to magically increase a hundredfold, then:A. the scarcity principle would still govern behavior.B. economics would no longer be relevant.C. the scarcity principle would disappear.D. tradeoffs would become unnecessary.8. The principle of scarcity applies to:A. the poor exclusively.B. all consumers.C. all firms.D. everyone—consumers, firms, governments, and nations.9. At the very least, Joe Average and Bill Gates are both identically limited by:A. their wealth.B. the 24 hours that comprise a day.C. their knowledge.D. their influence.10. Forest is a mountain man living in complete isolation in Montana. He is completely self-sufficient through hunting, fishing, and farming. He has not been in the city to buy anything in five years. One can infer:A. the scarcity principle does not apply to Forest.B. Forest is not required to make choices.C. the scarcity principle still applies because more hunting means less fishing and farming.D. Forest is very satisfied.11. The scarcity principle applies to:A. all decisions.B. only market decisions, e.g., buying a car.C. only non-market decisions, e.g., watching a sunset.D. only the poor.12. Chris has a one-hour break between classes every Wednesday. Chris can either stay at the library and study or go to the gym and work out. The decision Chris must make is:A. not an economic problem because neither one costs money.B. not an economic problem because it's an hour that is wasted no matter what Chris does.C. an economic problem because the tuition Chris pays covers both the gym and the library.D. an economic problem because Chris has only one hour during which he can study or work out.13. Josh wants to go to the football game this weekend, but he has a paper due on Monday. It will take him the whole weekend to write the paper. Josh decided to stay home and work on the paper. According to the scarcity principle, the reason Josh didn't go to the game is that:A. Josh prefers schoolwork to football games.B. writing the paper is easier than going to the game.C. Josh doesn't have enough time for writing the paper and going to the game.D. it's too expensive to go to the game.14. Whether studying the size of the U.S. economy or the number of children a couple will choose to have, the unifying concept is that wants are:A. limited, resources are limited, and thus choices must be made.B. unlimited, resources are limited, and thus choices must be made.C. unlimited, resources are limited to some but not to others, and thus some people must make choices.D. unlimited, resources are limited, and thus government needs to do more.15. The cost-benefit principle indicates that an action should be taken:A. if the total benefits exceed the total costs.B. if the average benefits exceed the average costs.C. if the net benefit (benefit minus cost) is zero.D. if the extra benefit is greater than or equal to the extra costs.16. When a person decides to pursue an activity as long as the extra benefits are at least equal to the extra costs, that person is:A. violating the cost-benefit principle.B. following the scarcity principle.C. following the cost-benefit principle.D. pursuing the activity too long.17. Choosing to study for an exam until the extra benefit (improved score) equals the extra cost (mental fatigue) is:A. not rational.B. an application of the cost-benefit principle.C. an application of the scarcity principle.D. the relevant opportunity cost.18. The scarcity principle tells us that __________, and the cost-benefit principle tells us __________.A. choices must be made; how to make the choicesB. choices must be made; that the costs can never outweigh the benefits of the choicesC. rare goods are expensive; that the costs should outweigh the benefits of the choicesD. rare goods are expensive; that the costs can never outweigh the benefits of the choices19. According to the cost-benefit principle:A. the lowest cost activity usually gives the lowest benefit.B. a person should always choose the activity with the lowest cost.C. a person should always choose the activity with the greatest benefit.D. the extra costs and benefits of an activity are more important considerations than the total costs and benefits.20. A rational person is one who:A. is reasonable.B. makes choices that are easily understood.C. possesses well-defined goals and seeks to achieve them.D. is highly cynical.21. The seventh glass of soda that Tim consumes will produce an extra benefit of 10 cents and has an extra cost of zero (Tim is eating at the cafeteria). The cost-benefit principle predicts that Tim will:A. realize he has had too much soda to drink and go home.B. drink the seventh glass and continue until the marginal benefit of drinking another glass of soda is zero.C. volunteer to empty out the fountain.D. not drink the seventh glass.22. Janie must either mow the lawn or wash clothes, earning her a benefit of $30 or $45, respectively. She dislikes both equally and they both take the same amount of time. Janie will therefore choose to_________ because the economic surplus is ________.A. mow the lawn; greaterB. wash clothes; greaterC. mow the lawn; smallerD. wash clothes; smaller23. Dean decided to play golf rather than prepare for tomorrow's exam in economics. One can infer that:A. Dean has made an irrational choice.B. Dean is doing poorly in his economics class.C. the economic surplus from playing golf exceeded the surplus from studying.D. the cost of studying was less than the cost of golfing.Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year.24. The opportunity cost of attending Elite U is:A. $50,000B. $10,000C. $20,000D. $15,00025. The opportunity cost of attending State College is:A. $30,000B. $20,000C. $15,000D. $10,00026. Larry maximizes his surplus by attending:A. Elite U, because $60,000 is greater than the benefit at the other schools.B. State College, because the difference between the benefit and cost is greatest there.C. NoName U, because Larry has a full scholarship there.D. Elite U, because the opportunity costs of attending Elite U are the lowest.27. Larry has decided to go to Elite U. Assuming that all of the values described are correct, for Larry to decide on Elite U, he must have: A. calculated his surplus from each choice and picked the one with the highest surplus.B. underestimated the benefits of attending NoName.C. miscalculated the surplus of attending Elite U.D. determined the opportunity cost of each choice and picked the one with the lowest opportunity cost.28. Jen spends her afternoon at the beach, paying $1 to rent a beach umbrella and $11 for food and drinks rather than spending an equal amount of money to go to a movie. The opportunity cost of going to the beach is:A. the $12 she spent on the umbrella, food and drinks.B. only $1 because she would have spent the money on food and drinks whether or not she went to the beach.C. the movie she missed seeing.D. the movie she missed seeing plus the $12 she spent on the umbrella, food and drinks.29. Relative to a person who earns minimum wage, a person who earns $30 per hour has:A. a lower opportunity cost of working longer hours.B. a higher opportunity cost of taking a day off.C. a lower opportunity cost of driving farther to work.D. the same opportunity cost of spending time on leisure activities.30. The opportunity cost of an activity is the value of:A. an alternative forgone.B. the next-best alternative forgone.C. the least-best alternative forgone.D. the difference between the chosen activity and the next-best alternative forgone.31. Amy is thinking about going to the movies tonight. A ticket costs $7 and she will have to cancel her dog-sitting job that pays $30. The cost of seeing the movie is:A. $7.B. $30.C. $37.D. $37 minus the benefit of seeing the movie.32. Economic surplus is:A. the benefit gained by taking an action.B. the price paid to take an action.C. the difference between the benefit gained and the cost incurred of taking an action.D. the wage someone would have to earn in order to take an action.33. The Governor of your state has cut the budget for the University and increased spending on Medicaid. This is an example of:A. the pitfalls of considering average costs instead of marginal costs.B. poor normative economic decision making.C. poor positive economic decision making.D. choice in the face of limited resources.34. Sally earned $25,000 per year before she became a mother. After she became a mother, she told her employer that her opportunity cost of working is now $50,000, and so she is not willing to work for anything less. Her decision is based on:A. the high cost of raising a child.B. her desire to save for her child's college expenses.C. her increased value to her employer.D. the value she places on spending time with her child.35. Alex received a four-year scholarship to State U. that covered tuition and fees, room and board, and books and supplies. As a result:A. attending State U. for four years is costless for Alex.B. Alex has no incentive to work hard while at State U.C. the cost of attending State U. is the amount of money Alex could have earned working for four years.D. the cost of attending State U. is the sum of the benefits Alex would have had attending each of the four other schools to which Alex had been admitted.36. Suppose Mary is willing to pay up to $15,000 for a used Ford pick-up truck, but she finds one for $12,000. Her __________ is __________.A. benefit; $12,000B. cost; $15,000C. economic surplus; $3,000D. economic surplus; $12,00037. In general, rational decision making requires one to choose the actions that yield the:A. largest total benefits.B. smallest total costs.C. smallest net benefits.D. largest economic surpluses.38. Suppose the most you would be willing to pay for a plane ticket home is $250, but you buy one online for $175. The economic surplus of buying the online ticket is:A. $175.B. $250.C. $75.D. $0.39. The use of economic models, like the cost-benefit principle, means economists believe that:A. this is exactly how people choose between alternatives.B. this is a reasonable abstraction of how people choose between alternatives.C. those who explicitly make decisions this way are smarter.D. with enough education, all people will start to explicitly make decisions this way.40. Jenna decides to see a movie that costs $7 for the ticket and has an opportunity cost of $20. After the movie, she says to one of her friends that the movie was not worth it. Apparently:A. Jenna failed to apply the cost-benefit model to her decision.B. Jenna was not rational.C. Jenna overestimated the benefits of the movie.D. Jenna underestimated the benefits of the movie.41. Most of us make sensible decisions most of the time, because:A. we know the cost-benefit principle.B. subconsciously we are weighing costs and benefits.C. most people know about the scarcity principle.D. we conduct hypothetical mental auctions when we make decisions.42. Suppose a person makes a choice that seems inconsistent with the cost-benefit principle. Which of the following statements represents the most reasonable conclusion to draw?A. The person (explicitly or implicitly) over-estimated the benefits or under-estimated the costs or both.B. The cost-benefit principle is rarely true.C. The person does not grasp how decisions should be made.D. The person is simply irrational.43. Economic models are intended to:A. apply to all examples equally well.B. eliminate differences in the way people behave.C. generalize about patterns in decision-making.D. distinguish economics students from everyone else.44. Economic models claim to be:A. reasonable abstractions of how people make choices, highlighting the most important factors.B. exact replications of the decision-making process people use.C. interesting chalkboard exercises with little applicability to the real world.D. exceptionally accurate methods of predicting nearly all behavior of everyone.45. The cost-benefit model used by economists is:A. unrealistic because it is too detailed and specific to apply to a variety of situations.B. unrealistic because everyone can think of times when he or she violated the principle.C. useful because everyone follows it all of the time.D. useful because most people follow it most of the time.46. Barry owns a clothing store in the mall and has asked two economic consultants to develop models of consumer behavior that he can use to increase sales. Barry should choose the model that:A. does not include simplifying assumptions.B. is the most detailed and complex.C. assumes that consumers apply the cost-benefit principle.D. predicts that consumers will always prefer Barry's store to the competing stores.47. Economists use abstract models because:A. every economic situation is unique, so it is impossible to make generalizations.B. every economic situation is essentially the same, so specific details are unnecessary.C. they are useful for describing general patterns of behavior.D. computers have allowed economists to develop abstract models.48. Most people make some decisions based on intuition rather than calculation. This is:A. irrational, because intuition is often wrong.B. consistent with the economic model of decision-making, because calculating costs and benefits leads to decision-making pitfalls.C. consistent with the economic model because people intuitively compare the relative costs and benefits of the choices they face.D. inconsistent with the economic model, but rational because intuition takes into account non-financial considerations.49. Moe has a big exam tomorrow. He considered studying this evening, but decided to go out with Curly instead. Since Moe always chooses rationally, it must be true that:A. the opportunity cost of studying tonight is less than the value Moe gets from spending time with Curly.B. the opportunity cost of studying tonight is equal to the value Moe gets from spending time with Curly minus the cost of earning a low grade on the exam.C. Moe gets more benefit from spending time with Curly than from studying.D. Moe gets less benefit from spending time with Curly than from studying.50. If one fails to account for implicit costs in decision making, then applying the cost-benefit rule will be flawed because:A. the benefits will be overstated.B. the costs will be understated.C. the benefits will be understated.D. the costs will be overstated.Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfares are $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1400. Your only alternative use for your frequent-flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round-trip airfares are $450.51. If you do not use the frequent-flyer coupon to fly, should you go to Miami?A. Yes, your benefit is more than your cost.B. No, your benefit is less than your cost.C. Yes, your benefit is equal to your cost.D. No, because there are no benefits in the trip.52. What is the opportunity cost of using the coupon for the Miami trip?A. $100B. $450C. $500D. $55053. If you use the frequent-flyer coupon to fly to Atlanta, would you get any economic surplus by making the trip?A. No, there is a loss of $50.B. Yes, surplus of $350.C. Yes, surplus of $400.D. Yes, surplus of $100.54. If the Chicago-Atlanta round-trip air fare is $350, should you go to Miami?A. No, there is a loss of $50.B. No, there is a loss of $100.C. Yes, there is economic surplus of $50.D. Yes, there is economic surplus of $400.55. Pat earns $25,000 per year (after taxes), and Pat's spouse, Chris, earns $35,000 (after taxes). They have two pre-school children. Childcare for their children costs $12,000 per year. Pat has decided to stay home and take care of the children. Pat must:A. value spending time with the children by more than $25,000.B. value spending time with the children by more than $12,000.C. value spending time with the children by more than $13,000.D. value spending time with the children as much as does Chris.You paid $35 for a ticket (which is non-refundable) to see SPAM, a local rock band, in concert on Saturday. (Assume that you would not have been willing to pay any more than $35 for this concert.) Your boss called and she is looking for someone to cover a shift on Saturday at the same time as the concert. You will have to work 4 hours and she will pay you time and a half, which is $9/hr.56. Should you go to the concert instead of working Saturday?A. Yes, your benefit is more than your cost.B. No, your benefit is less than your cost.C. Yes, your benefit is equal to your cost.D. No, because there are no benefits in the concert.57. What is the opportunity cost of going to the concert?A. $1B. $9C. $35D. $3658. What is your opportunity cost, if you go to work on Saturday?A. $0B. $9C. $35D. $3659. Your economic surplus of going to work on Saturday is:A. $0B. $1C. $35D. $36Matt has decided to purchase his textbooks for the semester. His options are to purchase the books via the Internet with next day delivery to his home at a cost of $175, or to drive to campus tomorrow to buy the books at the university bookstore at a cost of $170. Last week he drove to campus to buy a concert ticket because they offered 25 percent off the regular price of $16.因为他们提供75折的正常价格16美元。

Chapter 7Markets in ActionCheckpoint 7.1Price Ceilings7.1.1)A price ceilingA)is an illegal price.B)is the price that exists in a black market.C)is the maximum price that can legally be charged.D)Both answers A and B are correct.E)Both answers B and C are correct.Answer:CTopic:Price ceilingSkill:Level 1: DefinitionObjective:Checkpoint 7.1Author:SA7.1.2)If a price ceiling is set above the equilibrium price, thenA)there will be a surplus of the good.B)there will be a shortage of the good.C)there will be neither a shortage nor a surplus of the good.D)the price ceiling will generate revenue for the government.E)the price ceiling affects suppliers but not demanders.Answer:CTopic:Price ceiling, shortageSkill:Level 4: Applying modelsObjective:Checkpoint 7.1Author:SA7.1.3)A price ceiling in the market for fuel oil that is below the equilibrium price willA)lead to the quantity supplied of fuel oil exceeding the quantity demanded.B)lead to the quantity demanded of fuel oil exceeding the quantity supplied.C)decrease the demand for fuel oil.D)increase the supply of fuel oil.E)have no effect in the market for fuel oil.Answer:BTopic:Price ceiling, shortageSkill:Level 4: Applying modelsObjective:Checkpoint 7.1Author:SAChapter 7 Markets in Action 277Price(dollars per sliceof pizza)Quantity supplied(slices of pizzaper week)Quantity demanded(slices of pizzaper week) 11050220403303044020550107.1.4)The demand and supply schedules for pizza are in the table above. A price ceiling of $2 perslice results inA)a surplus of 20 slices of pizza.B)a shortage of 20 slices of pizza.C)a shortage of 40 slices of pizza.D)a shortage of 60 slices of pizza.E)neither a shortage nor a surplus.Answer:BTopic:Price ceiling, shortageSkill:Level 4: Applying modelsObjective:Checkpoint 7.1Author:SA7.1.5)The demand and supply schedules for pizza are in the table above. A price ceiling of $4 perslice results inA)a surplus of 20 slices of pizza.B)a shortage of 20 slices of pizza.C)a shortage of 40 slices of pizza.D)a shortage of 60 slices of pizza.E)neither a shortage nor a surplus.Answer:ETopic:Price ceiling, shortageSkill:Level 4: Applying modelsObjective:Checkpoint 7.1Author:SA278 7.1.6)The demand and supply schedules for pizza are in the table above. If the government sets amaximum legal price of $2 per slice of pizza, thenA)there is a shortage of 20 slices of pizza.B)this maximum price is an example of a price floor.C)this maximum price is an example of a price ceiling.D)Both answers A and C are correct.E)Both answers B and C are correct.Answer:DTopic:Price ceiling, shortageSkill:Level 4: Applying modelsObjective:Checkpoint 7.1Author:SABade/Parkin Foundations of Microeconomics , Fourth Edition·Chapter 7 Markets in Action 2797.1.7)The figure above illustrates the bagel market. Which of the following statements is correct?A)With a price ceiling of $1.00 per bagel, the quantity demanded is equal to the quantitysupplied.B)With a price ceiling of $3.00 per bagel, the quantity demanded is greater than thequantity supplied.C)With a price ceiling of $1.00 per bagel, there is a shortage of bagels.D)Answers A and B are correct.E)Answers B and C are correct.Answer:CTopic:Price ceiling, shortageSkill:Level 4: Applying modelsObjective:Checkpoint 7.1Author:SA7.1.8)The figure above illustrates the bagel market. Which of the following statements is correct?A)With a price ceiling of $1.00 per bagel, the price of a bagel is $1.B)With a price ceiling of $3.00 per bagel, the price of a bagel is $2.C)With no government intervention, the equilibrium price of a bagel is $2.D) Only answers A and B are correct.E)Answers A, B, and C are correct.Answer:ETopic:Price ceilingSkill:Level 4: Applying modelsObjective:Checkpoint 7.1Author:SA280 7.1.9)In a housing market with no rent ceilings, the equilibrium rent is that for which the quantityof apartments demandedA)equals the quantity supplied.B)is greater than the quantity supplied.C)is less than the quantity supplied.D)might be greater than, equal to, or less than the quantity supplied depending onwhether the supply curve is upward sloping, horizontal, or vertical.E)None of the above answers is correct because without rent ceilings there is noequilibrium rent.Answer:ATopic:Rent ceilingSkill:Level 2: Using definitionsObjective:Checkpoint 7.1Author:JC7.1.10)Suppose the equilibrium rent in Denver is $1,050. A rent ceiling of $755 per month leads toA)a surplus of apartments in Denver.B)a shortage of apartments in Denver.C)no change in the Denver apartment market.D)fair prices in the Denver market.E)compared to the situation at the equilibrium rent, a decrease in the quantity ofapartments demanded and an increase in the quantity of apartments supplied.Answer:BTopic:Rent ceiling, shortageSkill:Level 2: Using definitionsObjective:Checkpoint 7.1Author:JC7.1.11)Suppose the equilibrium rent in Boston is $1,500. A rent ceiling of $1,600 per month leads toA)a surplus of apartments in Boston.B)a shortage of apartments in Boston.C)no change in the Boston apartment market.D)fair prices in the Boston apartment market.E)compared to the situation at the equilibrium rent, a decrease in the quantity ofapartments demanded and an increase in the quantity of apartments supplied.Answer:CTopic:Rent ceiling, shortageSkill:Level 2: Using definitionsObjective:Checkpoint 7.1Author:JCBade/Parkin Foundations of Microeconomics , Fourth Edition·Chapter 7 Markets in Action 2817.1.12)An illegal market in which the price exceeds a legally imposed price ceiling is called aA)shortage market.B)surplus market.C)black market.D)fair market.E)subsidized market.Answer:CTopic:Price ceiling, black marketSkill:Level 1: DefinitionObjective:Checkpoint 7.1Author:JC7.1.13)One of the consequences of a rent ceiling set below the equilibrium rent isA)decreased search activity.B)increased search activity.C)the establishment of landlord unions.D)surpluses of apartments.E)the elimination of the deadweight loss that would otherwise exist in the housingmarket.Answer:BTopic:Rent ceiling, searchSkill:Level 2: Using definitionsObjective:Checkpoint 7.1Author:JC7.1.14)The opportunity cost of an apartment in a rent controlled market is equal toA)the rent charged for the apartment.B)the opportunity cost of searching for the apartment.C)the rent charged for the apartment plus the opportunity cost of searching for theapartment.D)nothing because of the surplus of apartments when there are rent controls.E)the rent charged for the apartment minus the opportunity cost of searching for theapartment.Answer:CTopic:Rent ceiling, searchSkill:Level 2: Using definitionsObjective:Checkpoint 7.1Author:JC282 7.1.15)A rent ceiling in a housing marketA)makes all rents lower than the ceiling illegal to charge.B)is set above the equilibrium rent in order to have an effect.C)increases the time people spend searching for housing.D)Both answers B and C are correct.E)Both answers A and C are correct.Answer:CTopic:Rent ceiling, searchSkill:Level 3: Using modelsObjective:Checkpoint 7.1Author:SA7.1.16)In a market with a rent ceiling set below the equilibrium rent, the producer and consumersurplusA)both increase.B)both decrease but generally not to zero.C)do not change.D)are eliminated.E)are both totally converted into deadweight loss.Answer:BTopic:Rent ceiling, efficiencySkill:Level 2: Using definitionsObjective:Checkpoint 7.1Author:JC7.1.17)The deadweight loss in a housing market with a rent ceiling set below the equilibrium rent istheA)loss to those who cannot find apartments and the gain to landlords who charge blackmarket rents.B)loss to those who cannot find apartments and the loss to landlords who cannot offerhousing at the lower rent ceiling.C)loss to landlords and the gain to tenants who pay a fairer rent.D)loss to tenants and the gain to landlords who have the incentive to offer moreapartments for rent.E)gain to landlords and to tenants because now a fairer rent is charged.Answer:BTopic:Rent ceiling, deadweight lossSkill:Level 2: Using definitionsObjective:Checkpoint 7.1Author:JCBade/Parkin Foundations of Microeconomics , Fourth Edition·Chapter 7 Markets in Action 2837.1.18)Rent ceilings set below the equilibrium renti.create a deadweight loss.ii.increase search activity.iii.encourage landlords to charge a high price for new locks and keys, called ʺkey money.ʺA)i only.B)ii only.C)i and iii.D)i and ii.E)i, ii, and iii.Answer:ETopic:Rent ceiling, deadweight lossSkill:Level 3: Using modelsObjective:Checkpoint 7.1Author:SA7.1.19)In a housing market with a rent ceiling set below the equilibrium rent, as time passes thesupply of apartmentsA)decreases.B)increases.C)does not change.D)becomes fixed by the government.E)increases while the demand for apartments decreases.Answer:ATopic:Rent ceiling, change in supply over timeSkill:Level 2: Using definitionsObjective:Checkpoint 7.1Author:JC7.1.20)Which of the following is an example of the unfairness of rent control?A)Voluntary exchange is encouraged by rent control.B)Racial discrimination in renting is discouraged by rent control.C)Newcomers have a more difficult time finding apartments.D)Rich people do not get apartments in these markets.E)Too many people rent apartments.Answer:CTopic:Rent ceiling, unfairnessSkill:Level 2: Using definitionsObjective:Checkpoint 7.1Author:JC284 7.1.21)Suppose the city of Chicago imposes a rent control program that fixes rents at $400 below theequilibrium rent. With this planA)the quantity of apartments demanded will increase.B)the quantity of apartments supplied will increase.C)young people and poor people will have an easier time finding apartments.D)the deadweight loss in Chicago ʹs apartment market will be eliminated.E)there will be a surplus of apartments offered for rent.Answer:ATopic:Rent ceiling, unfairnessSkill:Level 3: Using modelsObjective:Checkpoint 7.1Author:JC7.1.22)Rent controlsA)create a deadweight loss.B)increase maintenance by landlords.C)benefit people who live in rent controlled apartments.D) Both answers A and C are correct.E) Both answers B and C are correct.Answer:DTopic:Rent ceiling, unfairnessSkill:Level 4: Applying modelsObjective:Checkpoint 7.1Author:SACheckpoint 7.2Price Floors7.2.1)A price floor isA)the highest possible legal price that can be charged for a good or service.B)usually equal to the equilibrium price established before the government imposed theprice floor.C)the lowest legal price at which a good or service can be traded.D)a legal price of zero that can be charged for a good or service.E)almost always equal to the price ceiling.Answer:CTopic:Price floorSkill:Level 1: DefinitionObjective:Checkpoint 7.2Author:JCBade/Parkin Foundations of Microeconomics , Fourth Edition·Chapter 7 Markets in Action 2857.2.2)A price floor set above the equilibrium priceA)creates a surplus.B)creates a shortage.C)creates excess demand.D)balances supply and demand.E)has no effect.Answer:ATopic:Price floor, surplusSkill:Level 4: Applying modelsObjective:Checkpoint 7.2Author:SA7.2.3)A price floorA)changes the equilibrium price if it is imposed in black markets.B)changes the price and quantity if it is set below the equilibrium price.C)changes the price and quantity if it is set above the equilibrium price.D)does not create a black market if it is set above the equilibrium price.E)changes the price and quantity only if it equals the equilibrium price.Answer:CTopic:Price floor, surplusSkill:Level 4: Applying modelsObjective:Checkpoint 7.2Author:SA7.2.4)Suppose the equilibrium price of a gallon of milk is $4. If the government imposes a pricefloor of $5 per gallon of milk, theA)quantity supplied of milk falls short of the quantity demanded.B)quantity supplied of milk exceeds the quantity demanded.C)supply increases.D)demand decreases.E)price of milk remains $4 per gallon.Answer:BTopic:Price floor, surplusSkill:Level 4: Applying modelsObjective:Checkpoint 7.2Author:SA7.2.5)Suppose the current equilibrium wage rate for housekeepers is $8.60 per hour. An increase inthe minimum wage to $7.50 per hour leads toA)a surplus of housekeepers.B)a shortage of housekeepers.C)no change in the market for housekeepers.D)an increase in the quantity of housekeepers supplied.E)unemployment of housekeepers.Answer:CTopic:Minimum wage, employmentSkill:Level 2: Using definitionsObjective:Checkpoint 7.2Author:JC7.2.6)Suppose the equilibrium wage rate for apricot pickers is $6.00 per hour and at that wage ratethe equilibrium quantity of apricot pickers employed is 14,000. If the minimum wage is set at $6.50 per hour, then theA)quantity of apricot pickers employed increases.B)quantity of apricot pickers employed decreases.C)quantity of apricot pickers employed does not change.D)wage rate for apricot pickers decreases.E)quantity of apricot pickers demanded does not change and the quantity of apricotpickers supplied does not change.Answer:BTopic:Minimum wage, employmentSkill:Level 4: Applying modelsObjective:Checkpoint 7.2Author:JC7.2.7)Suppose the current equilibrium wage rate for landscapers is $5.65 in Little Rock; $6.50 in St.Louis and $8.05 in Raleigh. An increase in the minimum wage to $6.50 per hour results inunemployment of landscapers inA)Little Rock and St. Louis.B)only Raleigh.C)Little Rock, St. Louis, and Raleigh.D)only Little Rock.E)St. Louis and Raleigh.Answer:DTopic:Minimum wage, employmentSkill:Level 3: Using modelsObjective:Checkpoint 7.2Author:JC7.2.8)Suppose the equilibrium wage rate for apricot pickers is $9.00 per hour in California and atthat wage rate the equilibrium quantity of apricot pickers is 14,000. If the minimum wage is set at $7.50 per hour, then theA)quantity of apricot pickers employed increases.B)quantity of apricot pickers employed decreases.C)quantity of apricot pickers employed does not change.D)wage rate for apricot pickers increases.E)some apricot pickers are unemployed.Answer:CTopic:Minimum wage, employmentSkill:Level 4: Applying modelsObjective:Checkpoint 7.2Author:JCWage rate(dollars per hour)Quantity demanded(workers)Quantity supplied(workers)9 40010008 600 9007 800 80061000 70051200 5007.2.9)The labor demand and labor supply schedules are given in the table above. If a minimumwage of $8 per hour is imposed,A)a surplus of 300 workers occurs.B)there is no shortage or surplus of workers.C)900 workers are employed.D)Both answers B and C are correct.E)Both answers A and C are correct.Answer:ATopic:Minimum wage, employmentSkill:Level 4: Applying modelsObjective:Checkpoint 7.2Author:SA7.2.10)The labor demand and labor supply schedules are given in the table above. If a minimumwage of $6 per hour is imposed,A)a surplus of 300 workers occurs.B)a shortage of 300 workers occurs.C)there is no surplus or shortage of workers.D)the quantity demanded is 1,000 workers.E)there is unemployment of 700 workers.Answer:CTopic:Minimum wage, employmentSkill:Level 4: Applying modelsObjective:Checkpoint 7.2Author:SA7.2.11)The figure above shows the labor market in a region. For a minimum wage to change thewage rate and amount of employment, it must beA)left to the forces of supply and demand.B)set above $6 an hour.C)set equal to $6 an hour.D)set below $6 an hour.E)set at $12 per hour.Answer:BTopic:Minimum wage, employmentSkill:Level 3: Using modelsObjective:Checkpoint 7.2Author:SA7.2.12)The figure above shows the labor market in a region. If a minimum wage of $8 an hour isimposed, then there are ________ unemployed workers.A)20,000B)40,000C)60,000D)80,000E)zeroAnswer:BTopic:Minimum wage, employmentSkill:Level 3: Using modelsObjective:Checkpoint 7.2Author:SA7.2.13)The figure above shows the labor market in a region. If a minimum wage of $8 an hour isimposed, then the quantity of labor supplied is ________ and the quantity of labor demanded is ________.A)60,000; 60,000B)80,000; 40,000C)40,000; 60,000D)60,000; 40,000E)40,000; 40,000Answer:BTopic:Minimum wage, employmentSkill:Level 3: Using modelsObjective:Checkpoint 7.2Author:SA7.2.14)The figure above shows the labor market in a region. In which of the following cases wouldthe amount of unemployment be the largest?A)when the market is at its equilibrium, with no minimum wageB)when a minimum wage of $4 an hour is imposedC)when a minimum wage of $6 an hour is imposedD)when a minimum wage of $8 an hour is imposedE)None of the above because the market will adjust so that there is no unemployment.Answer:DTopic:Minimum wage, unemploymentSkill:Level 3: Using modelsObjective:Checkpoint 7.2Author:MR7.2.15)One result of the minimum wage isA)a black market for labor that pays more than the minimum wage.B)a black market for labor that pays less than the minimum wage.C)decreased job search activity.D)a decrease in unemployment among poor and unskilled workers.E)an increase in employment among poor and unskilled workers.Answer:BTopic:Minimum wage, black marketSkill:Level 2: Using definitionsObjective:Checkpoint 7.2Author:JC7.2.16)An increase in the minimum wage to $15 per hour would lead toA)an increase in search activity for many workers.B)a decrease in search activity for many workers.C)a decrease in unemployment.D)no change in unemployment.E)no change in employment.Answer:ATopic:Minimum wage, searchSkill:Level 3: Using modelsObjective:Checkpoint 7.2Author:JC7.2.17)Suppose the marginal benefit a cherry orchard derives from hiring Lauren to pick cherries is$8 per hour. If the wage rate that Lauren earns is $7 per hour, then the orchardʹs surplus from Laurenʹs labor is ________ per hour.A)$7B)$15C)$1D)$8E)$0Answer:CTopic:Demand for labor, surplusSkill:Level 2: Using definitionsObjective:Checkpoint 7.2Author:JC7.2.18)The surplus for workers from a job is equal to theA)marginal cost of work.B)wage rate.C)marginal cost of work minus the wage rate.D)wage rate minus the marginal cost of work.E)marginal benefit of hiring a worker minus the wage rate.Answer:DTopic:Supply of labor, surplusSkill:Level 1: DefinitionObjective:Checkpoint 7.2Author:JC7.2.19)An efficient allocation of labor occurs when theA)marginal benefit to workers exceeds the marginal benefit to firms.B)marginal benefit to firms exceeds the marginal benefit to workers.C)marginal cost to workers is equal to the marginal benefit to firms.D)marginal cost and marginal benefit of both workers and the firms are equal to zero.E)marginal benefit of workers exceeds the marginal cost to firms by as much as possible.Answer:CTopic:Minimum wage, efficiencySkill:Level 3: Using modelsObjective:Checkpoint 7.2Author:SA7.2.20)If the minimum wage is set above the equilibrium wage, after taking into account theresources lost in job search, the firmsʹ surplus ________ and the workersʹ surplus ________.A)increases; increasesB)increases; decreases.C)decreases; increasesD)decreases; decreasesE)does not change; decreasesAnswer:DTopic:Minimum wage, efficiencySkill:Level 2: Using definitionsObjective:Checkpoint 7.2Author:JC7.2.21)A minimum wage set above the equilibrium wageA)decreases the deadweight loss in the market.B)decreases the workersʹ surplus because workers must spend resources looking for jobs.C)increases the firmʹs surplus.D)increases the marketʹs efficiency.E)has no effect on the market.Answer:BTopic:Minimum wage, efficiencySkill:Level 2: Using definitionsObjective:Checkpoint 7.2Author:SA7.2.22)Labor unions ________ increases in the minimum wage because an increase in the minimumwage ________ the demand for union labor.A)support; increasesB)support; decreasesC)oppose; increasesD)oppose; decreasesE)support; has no effect onAnswer:ATopic:Minimum wage, supportSkill:Level 2: Using definitionsObjective:Checkpoint 7.2Author:JC7.2.23)In the figure above, if the wage rate is $6 per hour, then theA)firmsʹ surplus is the area d+e+f.B)workersʹ surplus is the area a +b +c.C)deadweight loss equals zero.D)Only answers A and C are correct.E)Answers A, B, and C are correct.Answer:ETopic:Minimum wage, efficiencySkill:Level 4: Applying modelsObjective:Checkpoint 7.2Author:SA7.2.24)In the figure above, if the minimum wage rate is $8 per hour, then after taking account ofresources lost in job search, the workersʹ surplus is the area ________ and the firmsʹ surplus is the area ________.A)e; cB)d; bC)a; fD)f; aE)a + b + c + d + e; fAnswer:CTopic:Minimum wage, efficiencySkill:Level 4: Applying modelsObjective:Checkpoint 7.2Author:SA7.2.25)In the figure above, if the minimum wage is $8 per hour, thenA)resources used in job-search activity increase compared to the situation before theminimum wage.B)it is legal to hire workers for a wage below the minimum wage because otherwiseunemployment would result.C)the deadweight loss is minimized.D)Both answers A and B are correct.E)Both answers B and C are correct.Answer:ATopic:Minimum wage, efficiencySkill:Level 4: Applying modelsObjective:Checkpoint 7.2Author:SACheckpoint 7.3Price Supports in Agriculture7.3.1)Which of the following is true regarding a price support set above the equilibrium price?i.The price support increases the price consumers pay.ii.The price support creates a deadweight loss.iii.The price support decreases output.A)i and iiB)i and iiiC)iii onlyD)i, ii, and iiiE)i onlyAnswer:ATopic:Price supportSkill:Level 2: Using definitionsObjective:Checkpoint 7.3Author:CD7.3.2)A price support leads to inefficiency becauseA)output is more than the efficient, equilibrium quantity.B)the marginal benefit of the last unit produced is larger than the marginal cost.C)the price charged is less than the equilibrium price.D)producer surplus is less than consumer surplus.E)producers must pay a subsidy to the government.Answer:ATopic:Price support, deadweight lossSkill:Level 2: Using definitionsObjective:Checkpoint 7.3Author:CD7.3.3)Suppose the government imposes a price support that is above the equilibrium price. As aresult,A)total revenue increases.B)consumer surplus increases.C)the marginal cost of the last unit produced decreases.D)the government has effectively imposed a price ceiling.E)the subsidy the government pays decreases.Answer:ATopic:Price support, deadweight lossSkill:Level 2: Using definitionsObjective:Checkpoint 7.3Author:CDCheckpoint 7.4Integrative Questions7.4.1)The shortage created by a rent ceiling below the equilibrium rent is smallest when thedemand for housing is ________ and the supply of housing is ________.A)elastic; elasticB)elastic; inelasticC)inelastic; elasticD)inelastic; inelasticE)unit elastic; unit elasticAnswer:DTopic:IntegrativeSkill:Level 3: Using modelsObjective:IntegrativeAuthor:MR7.4.2)A regulation that sets the highest price at which it is legal to trade a good is aA)production quota.B)price floor.C)price support.D)price ceiling.E)subsidyAnswer:DTopic:IntegrativeSkill:Level 1: DefinitionObjective:IntegrativeAuthor:MR7.4.3)A regulation that sets the lowest price at which it is legal to trade a good is aA)search ceiling.B)price floor.C)production ceiling.D)price ceiling.E)subsidyAnswer:BTopic:IntegrativeSkill:Level 1: DefinitionObjective:IntegrativeAuthor:MR7.4.4)If the government imposes an effective ________, output decreases and ________ increases.A)price support; consumer surplusB)price floor; consumer surplusC)price support; total revenueD)price floor; marginal benefit to consumersE)price ceiling; efficiencyAnswer:CTopic:IntegrativeSkill:Level 3: Using modelsObjective:IntegrativeAuthor:CD7.4.5)If the government imposes an effective ________, a deadweight loss ________.A)price floor; does not occurB)price ceiling; does not occurC)price ceiling; occursD)price support; does not occurE)Both answers C and D are correct.Answer:CTopic:IntegrativeSkill:Level 3: Using modelsObjective:IntegrativeAuthor:CD7.4.6)Producers favor a ________ because ________.A)price ceiling; the equilibrium price increasesB)price support; the deadweight loss is minimizedC)price ceiling; total revenue increasesD)price support; total revenue increasesE)price ceiling; consumer surplus increasesAnswer:DTopic:IntegrativeSkill:Level 3: Using modelsObjective:IntegrativeAuthor:CD7.4.7)In order to have an impact, a ________ must be set below the equilibrium price and whenthis occurs, ________.A)price ceiling; consumer surplus increasesB)price floor; consumer surplus decreasesC)price ceiling; producer surplus decreasesD)price support; total revenue increasesE)price support; consumer surplus increasesAnswer:CTopic:IntegrativeSkill:Level 3: Using modelsObjective:IntegrativeAuthor:CD7.4.8)Which of the following describes a difference between a price support and a price ceiling?A)A price support creates a deadweight loss while a price ceiling does not.B)A price ceiling is a regulated price while a price support is a regulated quantity.C)A price support decreases the quantity while a price ceiling does not.D)A price ceiling increases the price above the equilibrium price while a price supportdoes not.E)A price support attempts to raise the price above the equilibrium price while a priceceiling does not.Answer:ETopic:IntegrativeSkill:Level 3: Using modelsObjective:IntegrativeAuthor:CD7.4.9)Both price supports and a price floor canA)create a deadweight loss.B)decrease output below the equilibrium quantity.C)decrease the price below the equilibrium price.D)increase consumer surplus.E)have no effect on producer surplus.Answer:ATopic:IntegrativeSkill:Level 3: Using modelsObjective:IntegrativeAuthor:MR7.4.10)Which of the following is true?i. A price ceiling set above the equilibrium price has no effects.ii. A price ceiling set below the equilibrium price creates a surplus.iii. A price floor set above the equilibrium price has no effects.A)Only iB)Only iiC)Only iiiD)i and iiE)ii and iiiAnswer:ATopic:IntegrativeSkill:Level 2: Using definitionsObjective:IntegrativeAuthor:CO7.4.11)Which of the following is true?i. A price ceiling is inefficient but fair.ii. A price floor is inefficient and unfair.iii. A price support increases the quantity produced.A)Only iB)Only iiC)Only iiiD)i and iiE)ii and iiiAnswer:BTopic:IntegrativeSkill:Level 2: Using definitionsObjective:IntegrativeAuthor:CO。

最新版微观经济学精品习题英文版ch02Chapter 2 Thinking Like an Economist1. A simplifying assumption ( )a.affects the important conclusions of an economic model.b.increases the level of detail in an economic model.c.limits the validity of an economic model’s conclusion.d.eliminates unnecessary details from an economic model.2. The ultimate purpose of an economic model is to ( )a.explain reality as completely as possible.b.establish assumptions that closely resemble reality.c.help us to understand economic behavior.d.guide government policy decisions.3. An economic model ( )/doc/7818111235.html,es equations to understand normative economic phenomena.b.often omits crucial elements.c.simplifies reality in order to focus on crucial elements.d.cannot be proven wrong.4. Which of the following activities would occur in a market for factors of production?( )a.Reesa buys a new computer to help balance her personal checkbook.b.Randy pays a speeding ticket.c.Ian mows his grass.d.General Motors hires additional workers to run a third-shift at a factory.5. Which of the following activities would occur in a market for goods and services? ( )a.Harry mows his grass.b.General Motors hires additional workers to run a third shift at a factory.c.Jane bakes pies for Thanksgiving dinner.d.Dolly buys a ticket to a ball game.6. The three sources of income for the household are ( )a.taxes, subsidies from the government, and rent.b.wages, rent, and profit.c.wages, rent, and subsidies from the government.d.wages, rebates, and rent.7. Households play what role(s) in the circular flow diagram? ( )a.purchasers of factors of production and sellers of services.b.purchasers of factors of production and sellers of goods.c.purchasers of goods and services only.d.purchasers of goods and services and sellers of factors of production.8. Which of the following is not an assumption that underlies an economy’s production possibilities frontier? ( )a.fixed income.b.fixed resources.c.unchanged technology.d.fully employed resources.9. Which of the following would not result in an outward shift of a nation’s production possibilities frontier? ( )a. a reduction in the unemployment rate.b. a rise in labor productivity.c.advances in technology.d.an expanding resource base.10. The production possibilities frontier demonstrates the basic economic principle that( )a.economies are always efficient.b.assuming full employment, supply will always determine demand.c.assuming full employment, an economy is efficient only when the productionof capital goods in a particular year is greater than the production ofconsumption goods in that year.d.assuming full employment, to produce more of any one thing, the economymust produce less of at least one other good.11. Opportunity costs most often increase as you move downa production possibilities frontier because ( )a.resources are not completely adaptable to alternative uses.b.factors of production are limited and human wants are unlimited.c.efficiencies are generated by large-scale production.d.economic efficiency is only possible in the short run.。

哈伯德英文版微观经济学练习c10Microeconomics - Testbank 1 (Hubbard/O'Brien)Chapter 10 Technology, Production, and Costs1) T he average total cost of production is the:A) e xtra cost required to produce one more unit.B) t otal cost of production.C) t otal cost of production divided by the level of output.D) t otal cost of production multiplied times the level of output.2) A mong the potential sources of an advance in technology for a producing firm is:A) b etter trained workers.B) m ore efficient physical capital.C) h igher skill level of managers.D) a ll of the above.3) T he short run is:A) o ne day.B) o ne week.C) s ix months.D) a s long it takes a particular firm to change its plant capacity.4) A factor of production that is not fixed in the short run is:A) p hysical capital.B) t echnology.C) l abor.D) l and.5) A characteristic of the long run is:A) t here are no fixed inputs.B) a ll inputs can be varied.C) p lant capacity can be increased or decreased.D) a ll of the above.6) E conomics cost of production differ from those in accounting in that:A) e conomics includes expenditures for hired resources while accounting does not.B) e conomics adds the opportunity cost of a firm using its own resources.C) a ccounting includes expenditures for hired resources while economics does not.D) a ccounting costs are always larger than economic costs.7) W hich of the following is an implicit cost of production?A) I nterest paid on a loan to a bank.B) W ages paid to labor plus the cost of carrying benefits for workers.C) T he utility bill paid to water, electricity, and natural gas companies.D) R ent that could have been earned on a building owned and used by the firm.8) I mplicit costs of production are also called:A) o verhead.B) v ariable costs.C) d irect costs.D) o pportunity costs.9) A factor of production that generally is fixed in the short run is:A) r aw materials.B) l abor.C) a building.D) w ater.10) T he relationship between different amounts of inputs and the resulting level of output is a:A) t otal cost schedule.B) p roduction possibilities frontier.C) p roduction function.D) p roduction quota.11) I f the firm is producing nothing in the short run, then:A) t otal costs are zero.B) v ariable costs are low but positive.C) m arginal costs are negative.D) f ixed costs are positive.12) A s a firm hires more labor in the short run, the:A) l evel of total product stays constant.B) o utput per worker rises.C) e xtra output of another worker may rise at first, but eventually must fall.D) c osts of production are increasing at a fixed rate per unit of output.Refer to Figure 10.1 for the questions below.Figure 10.113) I n figure 10.1, diminishing returns to labor set in after:A) L1.B) L2.C) L3.D) n one of the above.14) I n figure 10.1, short run output is maximized at:A) L1.B) L2.C) L3.D) n one of the above.15) I n figure 10.1, AP of labor declines after L2 because:A) M P of labor is below AP of labor.B) M P of labor is falling.C) M P of labor is negative.D) M P of labor is positive.16) I f four workers can produce 18 chairs a day and five can produce 20 chairs a day, themarginal product of the fifth worker is:A) four chairs.B) f ive chairs.C) t wo chairs.D) 38 chairs.17) T he short run marginal product of labor increasing at first and then falling is an example ofthe law of:A) d emand.B) s upply.C) d iminishing marginal utility.D) d iminishing returns.18) T he reason the marginal product of labor in the short run increases at first and then falls isbecause:A) a s more labor is hired, they are not as skilled as the first ones hired.B) t here are fewer opportunities for division of labor and specialization.C) t he management is inefficient.D) t he extra workers have busy work piled on them.19) I f 11 workers can produce a total of 54 units of a productand another worker has a marginalproduct of six, then the average product of 12 workers is:A) 60.B) 54.C) 48.D) 5.20) I f another worker adds nine units of output to a group of workers who had an averageproduct of seven units, then the average product of labor:A) w ill remain the same.B) w ill increase.C) w ill decrease.D) a nd what will happen to it can not be determined.21) I f average product is decreasing, we know that:A) t otal product is negative.B) m arginal product is negative.C) m arginal product is smaller than average product.D) m arginal product is at its positive.22) I f all we know is all workers' marginal product, then total and average product can be foundby:A) d ividing marginal costs by the number of workers.B) m ultiplying the average marginal product times the number of workers.C) s umming the marginal values to find the total and multiplying it times the number ofworkers to get the average.D) s umming the marginal values to find the total and dividing it by the number of workersto get the average.23) I f we know that marginal product is equal to average product, then:A) a verage product is at a maximum.B) t otal product is at a maximum.C) m arginal product is at a maximum.D) a verage product must be falling.24) M arginal cost is U-shaped because of the:A) l aw of demand.B) l aw of diminishing marginal utility.C) l aw of diminishing returns.D) l aw of increasing costs.25) A verage total cost is equal to:A) a verage fixed costs minus average variable costs.B) t otal costs divided by the level of output.C) m arginal costs plus variable costs.D) t otal costs divided by the number of workers.Refer to Figure 10.2 for the questions below.Figure 10.226) I n figure 10.2, the difference between average total costs and average variable costs is:A) a verage fixed costs.B) m arginal costs.C) f ixed costs.D) s unk costs.27) I n figure 10.2, average variable costs approach average total costs as output rises because:A) m arginal costs are above average variable costs.B) a verage fixed costs are falling.C) f ixed costs are falling.D) t otal costs are falling.28) I n the long run:A) a ll inputs in production are variable.B) t here are no fixed costs.C) t otal costs equal variable costs.D) a ll of these are correct.29) L ong run costs are U-shaped because:A) o f the law of demand.B) o f the law of diminishing returns.C) o f economies and diseconomies of scale.D) o f the law of supply.30) I f average total cost is $50 and average fixed cost is $15 when output is 20 units, then thefirm's total variable cost at that level of output is:A) $1,000.B) $700.C) $300.D) i mpossible to determine without additional information.31) I f average total cost is $50 and average fixed cost is $15 when output is 20 units, then thefirm's average variable cost at that level of output is:A) $45.B) $35.C) $30.D) i mpossible to determine without additional information.32) W hen the average total cost is $16, the level of total cost is $800, then the number of units thefirm is producing is:A) i mpossible to determined with the information given.B) 784.C) 12,800.D) 50.33) I f a firm doubles all its inputs in the long run and it finds its average cost of production hasdecreased, then it has:A) d iminishing returns.B) e conomies of scale.C) d iseconomies of scale.D) d eclining fixed costs.34) E conomies of scale exist because as a firm increases its size in the long run:A) t he firm can afford more sophisticated technology in production.B) l abor and management can specialize their activities more.C) a s a larger input buyer the firm can purchase inputs at a lower per unit cost.D) a ll of these.35) I n natural monopolies such as the generation of electricity, long-run average costs continue todecrease as the plant size gets larger, because:A) d iminishing returns are not present.B) d iseconomies of scale are very minor but economies of scale continue.C) s omeone must have made a mistake at lower levels of output.D) t here are no fixed costs.36) W hen a firm's long-run average cost curve is horizontal for a range of output, then in thatrange the firm has:A) i ncreasing returns to scale.B) c onstant returns to scale.C) d ecreasing returns to scale.D) c onstant average fixed costs.37) A n isoquant shows:A) t he combinations of two goods that yield the same total satisfaction.B) t he combinations of two inputs that yield the same total product.C) t he combinations of two inputs that cost the same total quantity of money.D) t he combination of two goods that cost the same amount of money.38) T he typical shape of isoquants is:A) c oncave towards the origin.B) c onvex towards the origin.C) s traight downsloping line.D) s traight upsloping line.39) A s a firm substitutes labor for capital, more labor is required to equal one less unit of capitalbecause:A) c apital is always more productive than labor.B) a s less capital is used, diminishing returns to labor become more pronounced.C) d iseconomies of scale.D) t he price of each input changes.40) A n isocost line shows:A) a ll the possible combinations of two inputs the firm can use.B) a ll the possible combinations of two inputs the firm can use that have the same total cost.C) a ll the possible combinations of two inputs the firm can use that have the same marginalcost.D) a ll the possible combinations of two inputs with constant returns to scale.41) T he position of the isocost line is determined by the:A) p rices of the two inputs.B) p roductivities of the two inputs.C) l evel of total cost.D) p rice of the product.42) O n an isoquant/isocost graph the least cost combination of producing a given output is:A) a ny point on the isoquant curve.B) a ny point on the isocost curve.C) t he tangency point between the isoquant curve and the isocost line.D) o nly on one of the axes of the graph.43) D ifferent economies might use different combinations of inputs like labor and capital toproduce the same goods because of:A) d ifferent technologies.B) d ifferences in the productivity of the inputs.C) d ifferences in the prices of the inputs.D) a ll of the above.44) I f labor is the horizontal axis input and physical capital is the vertical axis input, then at theleast costs output:A) t he marginal rate of technical substitution is equal to the wage rate divided by the costof capital.B) t he marginal rate of technical substitution is multiplied times the wage rate divided bythe cost of capital.C) t he marginal rate of technical substitution is divided by the wage rate multiplied timesthe cost of capital.D) t he marginal rate of technical substitution is equal to the amount of capital divided bythe amount of labor.45) I f the amount of labor being used has a marginal product of 12 units of output per worker at awage rate of $6 per worker and the current capital amount being used has a marginal product of 20 units per machine, then for this to be a least cost combination of inputs the cost of capital must be:A) $2.B) $10.C) $20.D) I mpossible to determine with the information given.。

《微观经济学：利润最大化与竞争性供给》问答与练习（英文版含答案）PROFIT MAXIMIZATION AND COMPETITIVE SUPPLY1. Why would a firm that incurs losses choose to produce rather than shut down?Losses occur when revenues do not cover total costs. Revenues could still be greater thanvariable costs, but not fixed costs. If a firm is incurring a loss, it will seek to minimizethat loss. In the short run, losses will be minimized as long as the firm covers its variablecosts. In the long run, all costs are variable. Thus, all costs must be covered if the firmis to remain in business.2. The supply curve for a firm in the short run is the short-run marginal cost curve (above the point of minimum average variable cost). Why is the supply curve in the long run not the long-run marginal cost curve (above the point of minimum average total cost)?In the short run, a change in the market price induces the profit-maximizing firm tochange its optimal level of output. This optimal output occurs when price is equal tomarginal cost, as long as marginal cost exceeds average variable cost. Therefore, thesupply curve of the firm is its marginal cost curve, above average variable cost. (Whenthe price falls below average variable cost, the firm will shut down.)In the long run, the firm adjusts its inputs so that its long-run marginal cost is equal tothe market price. At this level of output, it is operating on a short-run marginal costcurve where short-run marginal cost is equal to price. As the long-run price changes,the firm gradually changes its mix of inputs to minimize cost. Thus, the long-run supplyresponse is this adjustment from one set of short-run marginal cost curves to another.3. In long-run equilibrium, all firms in the industry earn zero economic profit. Why is this true?The theory of perfect competition explicitly assumes that there are no entry or exitbarriers to new participants in an industry. With free entry, positive economic profitsinduce new entrants. As these firms enter, the supply curve shifts to the right, causinga fall in the equilibrium price of the product. Entry will stop, and equilibrium will beachieved, when economic profits have fallen to zero.4. What is the difference between economic profit and producer surplus?While economic profit is the difference between total revenue and total cost, producersurplus is the difference between total revenue and total variable cost. The differencebetween economic profit and producer surplus is the fixed cost of production.5. Why do firms enter an industry when they know that in the long run economic profit will be zero?Firms enter an industry when they expect to earn economic profit. These short-runprofits are enough to encourage entry. Zero economic profits in the long run implynormal returns to the factors of production, including the labor and capital of the ownersof firms. For example, the owner of a small business might experience positiveaccounting profits before the foregone wages from running the business are subtractedfrom these profits. If the revenue minus other costs is just equal to what could be earnedelsewhere, then the owner is indifferent to staying in business or exiting.6. At the beginning of the twentieth century, there were many small American automobile manufacturers. At the end of the century, there are only three large ones. Suppose that this situation is not the result of lax federal enforcement of antimonopoly laws. How do you explain the decrease in the number of manufacturers? (Hint: What is the inherent cost structure of the automobile industry?) Automobile plants are highly capital-intensive. Assuming there have been noimpediments to competition, increasing returns to scale can reduce the number of firmsin the long run. As firms grow, their costs decrease with increasing returns to scale.Larger firms are able to sell their product for a lower price and push out smaller firms inthe long run. Increasing returns may cease at some level of output, leaving more thanone firm in the industry.7. Industry X is characterized by perfect competition, so every firm in the industry is earning zero economic profit. If the product price falls, no firms can survive. Do you agree or disagree? Discuss.Disagree. As the market price falls, firms cut their production. If price falls belowaverage total cost, firms continue to produce in the short run and cease production in thelong run. If price falls below average variable costs, firms cease production in the shortrun. Therefore, with a small decrease in price, i.e., less than the difference between theprice and average variable cost, firms can survive. With larger price decrease,i.e.,greater than the difference between price and minimum average cost, no firms survive.8. An increase in the demand for video films also increases the salaries of actors and actresses. Is the long-run supply curve for films likely to be horizontal or upward sloping? Explain.The long-run supply curve depends on the cost structure of the industry. If there is a fixedsupply of actors and actresses, as more films are produced, higher salaries must be offered.Therefore, the industry experiences increasing costs. In an increasing-cost industry, thelong-run supply curve is upward sloping. Thus, the supply curve for videos would beupward sloping.9. True or false: A firm should always produce at an output at which long-run average cost is minimized. Explain.False. In the long run, under perfect competition, firms should produce where averagecosts are minimized. The long-run average cost curve is formed by determining theminimum cost at every level of output. In the short run, however, the firm might not beproducing the optimal long-run output. Thus, if there are any fixed factors of production,the firm does not always produce where long-run average cost is minimized.10. Can there be constant returns to scale in an industry with an upward-sloping supply curve? Explain.Constant returns to scale imply that proportional increases in all inputs yield the sameproportional increase in output. Proportional increases in inputs can induce higherprices if the supply curves for these inputs are upward sloping. Therefore, constantreturns to scale does not always imply long-run horizontal supply curves.11. What assumptions are necessary for a market to be perfectly competitive? In light of what you have learned in this chapter, why is each of these assumptions important?The two primary assumptions of perfect competition are (1) all firms in the industry areprice takers, and (2) there is free entry and exit of firms from the market. This chapterdiscusses how competitive equilibrium is achieved under these assumptions. In particular,we have seen that in a competitive equilibrium, price is equal to marginal cost. Bothassumptions insure this equilibrium condition in the long run. In the short run, pricecould be greater than average cost, implying positive economic profits. With free entryand exit, positive economic profits would encourage other firms to enter. This entryexerts downward pressure on price until price is equal to both marginal cost andminimum average cost.12. Suppose a competitive industry faces an increase in demand (i.e., the curve shifts upward). What are the steps by which a competitive market insures increased output? Does your answer change if the government imposes a price ceiling?If demand increases with fixed supply, price and profits increase. The price increaseinduces the firms in the industry to increase output. Also, with positive profit, firmsenter the industry, shifting the supply curve to the right. With an effective price ceiling,profit will be lower than without the ceiling, reducing the incentive for firms to enter theindustry. With zero economic profit, no firms enter and there is no shift in the supplycurve.13. The government passes a law that allows a substantial subsidy for every acre of land used to grow tobacco. How does this program affect the long-run supply curve for tobacco?A subsidy to tobacco pro duction decreases the firm’s costs of production. These costdecreases encourage other firms to enter tobacco production, and the supply curve for theindustry shifts out.1. From the data in Table 8.2, show what happens to the firm’s output ch oice and profit if the price of the product falls from $40 to $35.The table below shows the firm’s revenue and cost information when the price falls to $35.At a price of $35, the firm should produce seven units to maximize profits, because this isthe point closest to where price equals marginal cost without having marginal cost exceedprice.2. Again, from the data in Table 8.2, show what happens to the firm’s output choice and profit if the fixed cost of production increases from $50 to $100, and then to $150. What general conclusion can you reach about the effects of fixed costs on the firm’s output choice?The table below shows the firm’s revenue and cost information for Fixed Cost, FC of 50,100, and 150.With fixed costs of 100, the firm maximizes profit at 8 units of output. It also minimizeslosses with fixed costs of 150 at the same level. Fixed costs do not influence the optimalquantity, because they do not influence marginal cost.3. Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C = 100 + Q2, where Q is the level of output and C is total cost. (The marginal cost of production is 2Q. The fixed cost of production is $100.)a. If the price of watches is $60, how many watches should you produce to maximize profit?Profits are maximized where marginal cost is equal to marginal revenue. Here,marginal revenue is equal to $60; recall that price equals marginal revenue in acompetitive market:60 = 2Q, or Q = 30.b. What will the profit level be?Profit is equal to total revenue minus total cost:π = (60)(30) - (100 + 302) = $800.c. At what minimum price will the firm produce a positive output?A firm will produce in the short run if the revenues it receives are greater than its variablecosts. Remember that the firm’s short-run supply curve is its marginal cost curve abovethe minimum of average variable cost. Here, average variable cost is VCQQQQ ==2.Also, MC is equal to 2Q. So, MC is greater than AVC for any quantity greater than 0. This means that the firm produces in the short run as long as price is positive.4. Use the same information as in Exercise 1 to answer the following.a. Derive the firm’s short-run supply curve. (Hint: you may want to plot the appropriate costcurves.)The firm’s short-run supply curve is its marginal cost curve above average variable cost.The table below lists marginal cost, total cost, variable cost, fixed cost, and averagevariable cost.Q P TR TC MC TVC TFC AVC0 40 0 50 -50 ___ 0 50 ___1 40 40 100 -60 50 50 50 50.02 40 80 128 -48 28 78 50 39.03 40 120 148 -28 20 98 50 32.74 40 160 162 -2 14 112 50 28.05 40 200 180 20 18 130 50 26.06 40 240 200 40 20 150 50 25.07 40 280 222 58 22 172 50 24.68 40 320 260 60 38 210 50 26.3b. If 100 identical firms are in the market, what is the industry supply curve?For 100 firms with identical cost structures, the market supply curve is the horizontalsummation of each firm’s output at each price.Figure 8.4.b5. A sales tax of $1 per unit of output is placed on one firm whose product sells for $5 in a competitive industry.a. How will this tax affect the cost curves for the firm?With the imposition of a $1 tax on a single firm, all its cost curves shift up by $1.b. What will happen to the firm’s price, output, and profit in the short run?Since the firm is a price-taker in a competitive market, the imposition of the tax on onlyone firm does not change the market price. Since the firm’s short-run supply curve is itsmarginal cost curve above average variable cost and that marginal cost curve has shiftedup (inward), the firm supplies less to the market at every price. Profits are lower atevery quantity.c. What will happen in the long run?If the tax is placed on a single firm, that firm will go out of business.6. Suppose that a competitive firm’s marginal cost of producing output q is given byMC(q) = 3 + 2q. Assume that the market price of the firm’s product is $9:a. What level of output will the firm produce?To maximize profits, the firm should set marginal revenue equal to marginal cost. Giventhe fact that this firm is operating in a competitive market, the market price it faces isequal to marginal revenue. Thus, the firm should set the market price equal to marginalcost to maximize its profits:9 = 3 + 2q, or q = 3.Total revenue is price times quantity:TR = ($9)(3) = $27.Profit is total revenue minus total cost:= $27 - $21 = $6.Therefore, the firm is earning positive economic profits.8. A competitive industry is in long-run equilibrium. A sales tax is then placed on all firms in the industry. What do you expect to happen to the price of the product, the number of firms in the industry, and the output of each firm in the long run?With the imposition of a sales tax on all firms, the supply curve shifts up and a newequilibrium will result with a lower quantity and a higher price. This shift in supplyrepresents lower production for all firms.*9. A sales tax of 10 percent is placed on half the firms (the polluters) in a competitive industry. The revenue is paid to the remaining firms (the nonpolluters) as a 10 percent subsidy on the value of output sold.a. Assuming that all firms have identical constant long-run average costs before the sales tax-subsidy policy, what do you expect to happen to the price of the product, the output of each of the firms, and industry output, in the short run and the long run? (Hint: How does price relate to industry input?)The price of the product depends on the quantity produced by all firms in the industry.The immediate response to the sales-tax=subsidy policy is a reduction in quantity bypolluters and an increase in quantity by non-polluters. If a long-run competitiveequilibrium existed before the sales-tax=subsidy policy, price would have been equal tomarginal cost and long-run minimum average cost. For the polluters, the price after thesales tax is below long-run average cost; therefore, in the long run, they will exit theindustry. Furthermore, after the subsidy, the non-polluters earn economic profits thatwill encourage the entry of non-polluters. If this is a constant cost industry and the lossof the polluters’ output is compensated by an increase in the non-polluters’ output, theprice will remain constant.b. Can such a policy always be achieved with a balanced budget in which tax revenues are equal tosubsidy payments? Why? Explain.As the polluters exit and non-polluters enter the industry, revenues from pollutersdecrease and the subsidy to the non-polluters increases. This imbalance occurs whenthe first polluter leaves the industry and persist’s ever after.。

最新版微观经济学精品习题英⽂版（withanswer）（7）Chapter 7 Consumers, Producers, and the Efficiency of Markets1. Which of the following best explains the source of consumer surplus for good A? ( a )a.Many consumers would be willing to pay more than the market price for good A.b.Many consumers pay prices that are greater than the equilibrium price of good A.c.Many consumers think the market price of good A is greater than its cost.d.Many consumers think the price elasticity of demand for good A is unit elastic.2. If you had been willing to pay $2.19 for the gallon of milk purchased at the supermarket but were required to pay only $1.89, you have gained ( b )a. a refund of $.30 from the clerk.b. a consumer surplus amounting to $.30.c.excess marginal benefit of $2.19.d.producer surplus of $.30.3. The demand curve shows ( b )a.the highest price buyers actually pay for each unit of a good and the amountthey would buy.b.the highest price buyers would be willing and able to pay for each unit of thegood or the amount purchased at each price.c.the consumer surplus buyers gain from each unit of the good if they were topurchase it.d.the enjoyment consumers get from each unit of the good if they were topurchase.4. The area underneath a demand curve down to the equilibrium price is ( c )a.always less than the area under the supply curve.b.always greater than the area under the supply curve.c.consumer surplus.d.producer surplus.5. The benefit to a producer of selling a good at the equilibrium price is called ( a )a.producer surplus.b.consumer surplus.c.welfare economies.d.efficiency gain.6. Sellers’ costs of producing various units of the good are shown by the ( d )a.height of the demand curve.b.width of the demand curve.c.width of the supply curve.d.height of the supply curve.7. An economically efficient situation is one in which ( c )a.everyone has everything they need.b.everyone has above-average income.c.total surplus is maximized.d.all producers are operating at the lowest possible marginal cost.8. An equilibrium when there is perfect competition ( b )a.is undesirable.b.is economically efficient.c.leads to high consumer surplus at the expense of producer surplus.d.can be economically efficient only if the government steps in with price floorsto protect sellers.9. One way of measuring the economic inefficiency in a specific situation is to calculate the ( c )a.difference between the price of the good in the inefficient situation and theprice if the situation was efficient.b.change in revenue reported by firms.c.loss in consumer and producer surplus relative to an efficient solution.d.change in economic profits relative to an efficient solution.10. Equity involves( b )a.whether or not the outcome of an economic system is an large as possible.b.whether or not the outcome of an economic system is divided fairly amongparticipants.c.the way that government becomes involved in fighting for an efficientallocation of resources.d.maximization of total surplus.。

Managerial EconomicsPart 1：1。

The price of good A goes up。

As a result the demand for good B shifts to the left. From this we can infer that：a. good A is a normal good。

b。

good B is an inferior good。

c。

goods A and B are substitutes。

d。

goods A and B are complements.e. none of the above。

Choose： d） the definition os complements2。

Joe’s budget line is 15F + 45C = 900. When Joe chooses his most preferred market basket, he buys 10 units of C. therefore， he also buys ：a。

10 units of F b。

30 units of F c。

50 units of Fd. 60 units of F e。

None of the aboveChoose： b) We assume that Joe will spend all his income。

If C = 10, then 15F =900 – 45（10） =450, so F = 450/15 =30.3. Kim only buys coffee and compact discs。

Coffee costs $0.60 per cup， and CDs cost $12。

00 each。

She has ＄18 per week to spend on these two goods。

If Kim is maximizing her utility， her marginal rate of substitution of coffee for CDs is: a. 0。

ECON915, Seminar 4Attempt all of the following questions.1.) Assume that in a credit market with standard debt contracts, there are two groups of investors. Low risk investors (group 1) have a success probability of p 1=0.8 and a return of $150 on a successful investment of K=100, yielding an expected return of E(R 1)=0.8($150)+0.2($100)=$140. Assume further that the same amount of K=$100 is invested by either group and assuming further that 10 investors are present in either group. Based on the above, state what rate of return on successful investments, high risk investors would have to achieve in order to match the expected return of $140 if their success probability is p 2=0.6 .The expected return on a high risk investment is:E(R):= 140 = 0.6x+0.4(100), which can easily be solved for x:140=0.6x + 400.6x=140-40=100x=100/0.6=166.667=R 2, R 2/K=1.672.) Against the data provided above in Q1, what is the highest rate of return that could be achieved without violating the participation constraint for low and high risk investors respectively?The participation constraint in either case is E(Πi )>=0 which essentially implies that R S >=r. The maximum value is obtained for the point where the constraint holds with equality. So, for low risk investors we have:E(Π1)=0.8(150-100-100r) which yields 100r = 50, so r = 50/100 =0.5.This yields the following rate of return:%3535.0)7.0(5.020)10(6.0)10(8.05.0≈==+=Max ρ So the highest interest rate that can be reconciled with the low risk participation constraint is 50%. This yields a rate of return of 35% to the banking sector, because the interest rate is charged to a mixed pool of high and low risk investors.Likewise, for high risk investors we have E(Π2)=0.6(166.67-100-100r) which yields 100r = 66.67, so r = 0.67 and:()40.06.067.02,==Max ρwhich is just the expected rate of return for high risk investors.3.) Against the background of questions 1 and 2, compute which rates of return would be obtained by interest rates of r = 48%, 53% and 66% respectively.r = 48% would not yet violate low risk investors' participation constraint so:%6.33 i.e. ,34.0)7.0(48.020)10(6.0)10(8.048.0==+=A ρ For interest rates of r=53% and 66% low risk investors' participation constraint is violated, so:ρB = 0.53*0.6=0.312, i.e. 31.2%ρC = 0.66*0.6=0.396, i.e. 39.6%Note that r B >r A and yet ρB <ρA !。

Homework 2 （36 problems）Multiple ChoiceIdentify the choice that best completes the statement or answers the question.____ 1. In a market economy,a. supply determines demand and demand, in turn, determines prices.b. demand determines supply and supply, in turn, determines prices.c. the allocation of scarce resources determines prices and prices, in turn, determine supplyand demand.d. supply and demand determine prices and prices, in turn, allocate the economy’s scarceresources.____ 2. Buyers and sellers who have no influence on market price are referred to asa. market pawns.b. monopolists.c. price takers.d. price makers.____ 3. Which of these statements best represents the law of demand?a. When buyers’ tastes for a good increase, they purchase more of the good.b. When income levels increase, buyers purchase more of most goods.c. When the price of a good decreases, buyers purchase more of the good.d. When buyers’ demands for a good incr ease, the price of the good increases.____ 4. An increase in the price of a good willa. increase demand.b. decrease demand.c. increase quantity demanded.d. decrease quantity demanded.____ 5. Which of the following would not shift the demand curve for mp3 players?a. a decrease in the price of mp3 playersb. a fad that makes mp3 players more popular among 12-25 year oldsc. an increase in the price of CDs, a complement for mp3 playersd. a decrease in the price of satellite radio, a substitute for mp3 players____ 6. If the number of buyers in a market decreases, thena. demand will increase.b. demand will decrease.c. supply will increase.d. supply will decrease.____ 7. Opponents of cigarette taxes often argue that tobacco and marijuana are substitutes so that high cigarette pricesa. encourage marijuana use, and the evidence supports this argument.b. encourage marijuana use, but the evidence does not support this argument.c. discourage marijuana use, and the evidence supports this argument.d. discourage marijuana use, but the evidence does not support this argument.Table 4-3____ 8. Refer to Table 4-3.If these are the only four sellers in the market, then the market quantity supplied ata price of $4 isa. 4 units.b. 7.5 units.c. 10 units.d. 30 units.____ 9. Suppose you make jewelry. If the price of gold falls, then we would expect you toa. be willing and able to produce less jewelry than before at each possible price.b. be willing and able to produce more jewelry than before at each possible price.c. face a greater demand for your jewelry.d. face a weaker demand for your jewelry.____ 10. Recent forest fires in the western states are expected to cause the price of lumber to rise in the next 6 months. As a result, we can expect the supply of lumber toa. fall in 6 months, but not now.b. increase in 6 months when the price goes up.c. fall now.d. increase now to meet as much demand as possible.____ 11. A decrease in the number of sellers in the market causesa. the supply curve to shift to the left.b. the supply curve to shift to the right.c. a movement up and to the right along a stationary supply curve.d. a movement downward and to the left along a stationary supply curve.____ 12. A shortage exists in a market ifa. there is an excess supply of the good.b. the situation is such that the law of supply and demand would predict a decrease in theprice of the good from its current level.c. the current price is below its equilibrium price.d. quantity supplied exceeds quantity demanded.____ 13. If a shortage exists in a market, then we know that the actual price isa. above the equilibrium price and quantity supplied is greater than quantity demanded.b. above the equilibrium price and quantity demanded is greater than quantity supplied.c. below the equilibrium price and quantity demanded is greater than quantity supplied.d. below the equilibrium price and quantity supplied is greater than quantity demanded.Figure 4-12The diagram below pertains to the demand for turkey in the United States.____ 14. Refer to Figure 4-12.All else equal, a sale on chicken would cause a movea. from D A to D B.b. from D B to D A.c. from x to y.d. from y to x.Figure 4-13The diagram below pertains to the supply of paper in university markets.____ 15. Refer to Figure 4-13.All else equal, an increase in the use of laptop computers for note-taking would cause a movea. from x to y.b. from y to x.c. from S A to S B.d. from S B to S A.____ 16. Which of the following would increase in response to a decrease in the price of ironing boards?a. the quantity of irons demanded at each possible price of ironsb. the equilibrium quantity of ironsc. the equilibrium price of ironsd. All of the above are correct.____ 17. Which of the following events would unambiguously cause a decrease in the equilibrium price of cotton shirts?a. an increase in the price of wool shirts and a decrease in the price of raw cottonb. a decrease in the price of wool shirts and a decrease in the price of raw cottonc. an increase in the price of wool shirts and an increase in the price of raw cottond. a decrease in the price of wool shirts and an increase in the price of raw cotton____ 18. When consumers face rising gasoline prices, they typicallya. reduce their quantity demanded more in the long run than in the short run.b. reduce their quantity demanded more in the short run than in the long run.c. do not reduce their quantity demanded in the short run or the long run.d. increase their quantity demanded in the short run but reduce their quantity demanded inthe long run.____ 19. Which of the following statements about the price elasticity of demand is correct?a. The price elasticity of demand for a good measures the willingness of buyers of the goodto buy less of the good as its price increases.b. Price elasticity of demand reflects the many economic, psychological, and social forcesthat shape consumer tastes.c. Other things equal, if good x has close substitutes and good y does not have closesubstitutes, then the demand for good x will be more elastic than the demand for good y.d. All of the above are correct.____ 20. If the price of natural gas rises, when is the price elasticity of demand likely to be the highest?a. immediately after the price increaseb. one month after the price increasec. three months after the price increased. one year after the price increase____ 21. For a good that is a necessity, demanda. tends to be inelastic.b. tends to be elastic.c. has unit elasticity.d. cannot be represented by a demand curve in the usual way.Figure 5-1A AB BC C DDQuantityPrice____ 22. Refer to Figure 5-1. The demand curve representing the demand for a luxury good with several closesubstitutes is a. A. b. B. c. C. d. D.Table 5-2The following table shows a portion of the demand schedule for a particular good at various levels of income.____ 23. Refer to Table 5-2. Using the midpoint method, when income equals $7,500, what is the price elasticityof demand between $16 and $20? a. 0.56 b. 0.75 c. 1.33 d. 1.80____ 24. If demand is price inelastic, thena. buyers do not respond much to a change in price.b. buyers respond substantially to a change in price, but the response is very slow.c. buyers do not alter their quantities demanded much in response to advertising, fads, orgeneral changes in tastes. d. the demand curve is very flat.Figure 5-4____ 25. Refer to Figure 5-4. The section of the demand curve from B to C represents thea. elastic section of the demand curve.b. inelastic section of the demand curve.c. unit elastic section of the demand curve.d. perfectly elastic section of the demand curve.____ 26. For a horizontal demand curve,a. slope is undefined, and price elasticity of demand is equal to 0.b. slope is equal to 0, and price elasticity of demand is undefined.c. slope and price elasticity of demand both are undefined.d. slope and price elasticity of demand both are equal to 0.____ 27. Harry's Barber Shop increased its total monthly revenue from $1,500 to $1,800 when it raised the price ofa haircut from $5 to $9. The price elasticity of demand for Harry's Haircuts isa. 0.567.b. 0.700.c. 1.429.d. 2.200.____ 28. When demand is inelastic within a certain price range, then within that price range,a. an increase in price would increase total revenue because the decrease in quantitydemanded is proportionately less than the increase in price.b. an increase in price would decrease total revenue because the decrease in quantitydemanded is proportionately greater than the increase in price.c. a decrease in price would increase total revenue because the increase in quantitydemanded is proportionately smaller than the decrease in price.d. a decrease in price would not affect total revenue.____ 29. How does total revenue change as one moves downward and to the right along a linear demand curve?a. It always increases.b. It always decreases.c. It first increases, then decreases.d. It is unaffected by a movement along the demand curve.____ 30. Muriel's income elasticity of demand for football tickets is 1.50. All else equal, this means that if her income increases by 20 percent, she will buya. 150 percent more football tickets.b. 50 percent more football tickets.c. 30 percent more football tickets.d. 20 percent more football tickets.____ 31. Refer to Table 5-5. Using the midpoint method, the income elasticity of demand for good Y isa. 2.33, and good Y is a normal good.b. -2.33, and good Y is an inferior good.c. -0.43, and good Y is a normal good.d. -0.43, and good Y is an inferior good.____ 32. If, for two goods, the cross-price elasticity of demand is 1.25, thena. the two goods are luxuries.b. the two goods are substitutes.c. one of the goods is normal and the other good is inferior.d. the demand for one of the goods conforms to the law of demand, but the demand for theother good violates the law of demand.Short Answer33.a. Given the table below, graph the demand and supply curves for flashlights. Makecertain to label the equilibrium price and equilibrium quantity.b. What is the equilibrium price and the equilibrium quantity?c. Suppose the price is currently $5. What problem would exist in the market? Whatwould you expect to happen to price? Show this on your graph.d. Suppose the price is currently $2. What problem would exist in the market? Whatwould you expect to happen to price? Show this on your graph.34. Fill in the table below, showing whether equilibrium price and equilibrium quantity go up, go down, staythe same, or change ambiguously.35. Consider the following pairs of goods. For which of the two goods would you expect the demand to bemore price elastic? Why?a. water or diamondsb. insulin or nasal decongestant sprayc. food in general or breakfast cereald. gasoline over the course of a week or gasoline over the course of a yeare. personal computers or IBM personal computers36. Use the graph shown to answer the following questions. Put the correct letter(s) in the blank.a. The elastic section of the graph is represented by section from _______.b. The inelastic section of the graph is represented by section from _______.c. The unit elastic section of the graph is represented by section _______.d. The portion of the graph in which a decrease in price would cause total revenue to fallwould be from _________.e. The portion of the graph in which a decrease in price would cause total revenue to risewould be from _________.f. The portion of the graph in which a decrease in price would not cause a change in totalrevenue would be _________.g. The section of the graph in which total revenue would be at a maximum would be_______.h. The section of the graph in which elasticity is greater than 1 is _______.i. The section of the graph in which elasticity is equal to 1 is ______.j. The section of the graph in which elasticity is less than 1 is _______.。

ECON915 Financial Economics Seminar 21. As an investor, you consider investing in a recently liberalized emerging market economy. From past post liberalization performance data for this economy you know that investment projects tend to have a pay-off of 11.57% per annum. What assumption would you have to make to conclude that this figure is a good guide to future investment returns.One assumption for past sample data to give a guide to the future is that the remaining investment opportunities are of equal quality as the ones earlier exploited. If one assumes that there is a limited pool of such opportunities (not an entirely realistic assumption) it would appear that the more profitable ones get taken first. So, later investment projects may well earn a lower return.A second reason has to do with diminishing marginal returns to individual production factors and capital saturation in the production process. We will address this in more detail in the context of growth theory next semester. The basic lesson here is that in an applied context one needs to be aware about the factors that influence the probabilities underlying past decision making.2. How would a change in the market rate of interest affect the allocation of consumption over time?A rise in the rate of interest would lead to an increase in future consumption and a fall in present consumption. A fall in the rate of interest would likewise lead to a rise in present consumption relative to future consumption. In either case, the market rate of interest is equal to the consumer’s rate of time preference at the new equilibrium point.3. Assume you and a business partner attempt to agree on an investment project. You have a strong preference for saving while you know your business partner’s preference to be weighted in favour of present consumption. How, if at all, could you agree on the optimum amount to invest in your firm?Microeconomic theory tells us that you should invest in your firm until the internal rate of return to your investment project has fallen to the market rate of interest. Once this point is achieved, your ‘hedonistic’ business partner can borrow at the market rate of interest to fund his present consumption. You can likewise invest your remaining assets in a bank account. Both of you benefit from this arrangement. Even your business partner does, since the investment project earns a higher rate of return than the market rate of interest, enabling him to consume more over both periods, and re-allocate this higher income at a cost determined by the market interest rate.4. Consider an income prospect of £749 with a certainty equivalent income level of £1024. Would an economic agent with risk preferences corresponding to this scenario be risk averse or risk loving?He would be risk loving, since the amount of certain income creating the equivalent amount of utility (hence certainty equivalent) to a given prospect, is higher than the expected value of this income prospect.5. Assume that at the end of the course you join the other MSc Finance students for a drink in a local pub. By the end of the evening you have reached a state of intoxication that makes you feel generous so you volunteer to pay for the drinks of all MSc students who have not yet paid for their drink. Do you pay for your own drink?The operative concepts here are membership of the set of MSc students and ownership of the drinks to be paid for. By the statement above, you should strictly speaking not have paid for your own drink, since you only pay for the drinks of those MSc students who do not pay for their own drinks and you are one of the MSc students. If however you don’t pay for your own drink, then you belong to the subset of those MSc students who have not paid for their drinks so that you would have to pay for it if it were not for the fact that you only pay for the drinks of those who don’t pay for their own drink and this is your own drink after all ….As should be clear by now the above statement is –in good logic- paradoxical. In general terms, it is not possible in set logic to define a set of all sets that do not contain themselves since such a set would have to contain itself while it would be simultaneously required that it can’t do so.This is also known Russel’s paradox. If you go further into this you will find that it closely ties in with the impossibility of creating self contained logical systems. Many of the assumptions made in economic theory are introduced to simplify things. Even if they were not, some assumptions would have to be made as a basis for any theory (and this includes theoretical physics).。

Microeconomics - Testbank 1 (Hubbard/O'Brien)Chapter 11 Firms in Perfectly Competitive Markets1) A mong the characteristics of a perfectly competitive market structure is:A) a very large number of firms that are small compared to the market.B) a ll firms sell identical products.C) t here are no restrictions to entry by new firms.D) a ll of the above.2) A mong the characteristics of a monopolistically competitive market structure are:A) a large number of independently acting small sellers.B) a ll sellers sell products that are differentiated rather than identical.C) t here are no barriers to entry of new firms.D) a ll of the above.3) A mong the characteristics of an oligopoly market structure is:A) v ery few sellers.B) a unique product.C) i t is easy for new firms to enter the industry.D) a ll of the above.4) A mong the characteristics of a monopoly market structure is:A) t here is only one seller in the market.B) e ntry of new sellers is completely blocked.C) t he product is unique.D) a ll of the above.5) T he price of a seller's product in perfect competition is determined by:A) t he individual seller.B) a few of the sellers.C) m arket demand and market supply.D) t he individual demander.6) B oth individual buyers and sellers in perfect competition:A) c an influence the market price by their own individual actions.B) c an influence the market price by joining with a few of their competitors.C) h ave to take the market price as a given.D) h ave the market price dictated to them by government.7) B oth buyers and sellers are price takers in a perfectly competitive market because:A) t he price is determined by government intervention and dictated to buyers and sellers.B) e ach buyer and seller knows it is illegal to conspire to affect price.C) b oth buyers and sellers in a perfectly competitive market are concerned for the welfareof others.D) e ach buyer and seller is too small relative to others to independently affect the marketprice.8) T he demand for an individual seller's product in perfect competition is:A) t he same as market demand.B) d ownward sloping.C) v ertical.D) h orizontal.9) T he demand for each seller's product in perfect competition is horizontal at the market pricebecause:A) e ach seller is too small to affect market price.B) t he price is set by the government.C) a ll the sellers get together and set the price.D) a ll the demanders get together and set the price.10) I f the market price is $25, the average revenue of selling five units is:A) $125.B) $25.C) $5.D) $12.50.11) I f the market price is $25, the total revenue of selling five units is:A) $125.B) $25.C) $5.D) $625.12) I f the market price is $25 in a competitive market, the marginal revenue from selling the fifthunit is:A) $125.B) $25.C) $5.D) $12.50.13) W hich of the following relationships is NOT present for a firm in perfect competition?A) P rofit equals total revenue minus total cost.B) P rice equals average revenue.C) A verage revenue is greater than marginal revenue.D) M arginal revenue equals the change in total revenue of selling one more unit.14) F or a perfectly competitive firm, at profit maximization:A) m arket price equals marginal cost.B) t otal revenue minus total cost is maximized.C) m arginal revenue equals marginal cost.D) a ll of the above.15) F or a perfectly competitive firm, which of the following is NOT true at profit maximization?A) M arket price is greater than marginal cost.B) M arginal revenue equals marginal cost.C) T otal revenue minus total cost is maximized.D) P rice equals marginal cost.16) I f a perfectly competitive seller is producing at an output where price is $11 and the marginalcost is $14.54, then to maximize profits the firm should:A) c ontinue producing at the current output.B) p roduce a larger level of output.C) p roduce a smaller level of output.D) n ot enough information given to answer the question.17) I f a perfectly competitive seller is producing at an output where price is $114 and themarginal cost is $114, what should the seller do to maximize profits?A) C ontinue to produce the current output.B) P roduce a smaller output.C) P roduce a larger output.D) N ot enough information is given to answer the question.18) I n perfect competition:A) the market demand and the individual's demand are identical.B) t he market demand is perfectly inelastic while demand for an individual seller'sproduct is perfectly elastic.C) t he market demand is perfectly elastic while demand for an individual seller's productis perfectly inelastic.D) t he market demand is downsloping while demand for an individual seller's product isperfectly elastic.19) A very large number of small sellers who sell identical products implies:A) a multitude of vastly different selling prices.B) d ownward sloping demand for each seller's product.C) t he inability of one seller to influence price.D) c haos in the market.Refer to Figure 11.1 for the questions below.Figure 11.120) A t price P1, the firm in figure 11.1 would produce:A) Q3.B) Q5.C) Q6.D) z ero.21) A t price P2, the firm in figure 11.1 would produce:A) Q1.B) Q5.C) Q6.D) z ero.22) A t price P3, the firm in figure 11.1 would produce:A) Q5.B) Q6.C) Q7.D) Q4.23) A t price P4, the firm in figure 11.1 would produce:A) Q2.B) Q7.C) Q8.D) Q9.24) A t price P1, the firm in figure 11.1 would:A) l ose fixed costs.B) l ose more than fixed costs.C) l ose less than fixed costs.D) b reak even.25) A t price P2, the firm in figure 11.1 would:A) l ose fixed costs.B) l ose more than fixed costs.C) l ose less than fixed costs.D) b reak even.26) A t price P3, the firm in figure 11.1 would:A) s uffer a loss equal to fixed costs.B) m ake a profit.C) s uffer a loss less than fixed costs.D) b reak even.27) A t price P4, the firm in figure 11.1 would:A) s uffer a loss equal to fixed costs.B) m ake a profit.C) s uffer a loss less than fixed costs.D) b reak even.28) A t price P4 in the long run, the industry including the firm in figure 11.1 would:A) h ave entry of new firms.B) h ave exit of some existing firms.C) r emain the same size.D) c ease to exist.29) A t price P3 in the long run, the industry including the firm in figure 11.1 would:A) h ave entry of new firms.B) h ave exit of some existing firms.C) r emain the same size.D) c ease to exists.30) A t price P2 in the long run, the industry including the firm in figure 11.1 would:A) h ave entry of new firms.B) h ave exit of some existing firms.C) r emain the same size.D) c ease to exists.31) A n individual seller in perfect competition will not sell at a price higher than the market pricebecause:A) t he seller would not be able to sell anything.B) q uantity demanded would be zero.C) b uyers would buy from other sellers.D) o f all of these reasons.32) A n example of a perfectly competitive industry is:A) w heat production.B) s teel production.C) e lectricity production.D) a irplane production.33) T he total profit of a perfectly competitive firm can be calculated as:A) t otal revenue minus total cost.B) a verage profit per unit times quantity sold.C) p rice minus average total cost times quantity sold.D) a ll of the above.34) I f a perfectly competitive firm's price is less than average total cost but greater than averagevariable cost, the firm:A) i s earning a profit.B) s hould shut down.C) i s incurring a loss.D) i s breaking even.35) H ow are sunk costs and fixed costs related?A) T hey are not related in any way.B) S unk costs cannot be recovered and fixed costs can be avoided by shutting down.C) I n the short run they are equal to each other.D) I n the long run they equal each other.36) A perfectly competitive firm's supply curve is:A) i ts marginal cost curve.B) i ts marginal cost curve above minimum average total cost.C) i ts marginal cost curve above minimum average variable cost.D) i ts marginal cost curve above the minimum of average fixed cost.37) A perfectly competitive firm breaks even at a price:A) e qual to minimum average total cost.B) a bove minimum average total cost.C) e qual to minimum average variable cost.D) e qual to minimum average fixed costs.38) A perfectly competitive firm earns a profit when:A) p rice is equal to minimum average total cost.B) p rice is above minimum average total cost.C) p rice is equal to minimum average variable cost.D) p rice is equal to minimum average fixed costs.39) I f a typical firm in a perfectly competitive industry is earning profits, then:A) a ll firms will continue to earn profits.B) n ew firms will enter in the long run causing market supply to decrease and market priceto rise increasing profits.C) n ew firms will enter in the long run causing market supply to increase and market priceto fall decreasing profits.D) t he number of firms in the industry will remain constant in the long run.40) I f a typical firm in a perfectly competitive industry is incurring losses, then:A) a ll firms will continue to lose money.B) s ome firms will exit in the long run causing market supply to decrease and market priceto rise increasing profits for the remaining firms.C) s ome firms will exit in the long run causing market supply to decrease and market priceto fall increasing losses for the remaining firms.D) s ome firms will enter in the long run causing market supply to increase and marketprice to rise increasing profit for all firms.41) A perfectly competitive industry will be in long-run equilibrium when:A) n o firms are leaving or entering the industry.B) t he typical firm is just breaking even in terms of economic profit.C) t he market price is equal to the minimum point of the typical firm's long run averagetotal cost curve.D) a ll of the above.42) I f a perfectly competitive industry has new firms entering in the long run then:A) t he typical firm must be earning economic profit in the short run.B) t he typical firm must be earning economic profit in the long run.C) t he typical firm must be breaking even in the short run.D) t he typical firm must be producing too little of the product.43) A n industry's long-run supply curve shows:A) t he relationship in the long run between market price and quantity supplied.B) h ow the government determines the price of the product.C) h ow average productivity is changing.D) a ll of these.44) I f, as the industry expands, a competitive industry can supply larger quantities at the samelong-run market price, it is:A) a constant-cost industry.B) a n increasing-cost industry.C) a decreasing-cost industry.D) a fixed-cost industry.45) T he perfectly competitive market structure benefits consumers because:A) f irms produce goods at the lowest possible price in the long run.B) f irms are forced by competitive pressure to be as efficient as possible.C) f irms are compelled to be productively efficient.D) a ll of the above.46) A perfectly competitive industry achieves allocative efficiency because:A) g oods and services are produced at the lowest possible cost.B) g oods and services are produced up to the point where the last unit provides a marginalbenefit to consumers equal to the marginal cost of producing it.C) i t produces where market price equals marginal production cost.D) a ll of the above.47) I n long-run competitive equilibrium, which is NOT found?A) E fficient, low-cost production at the minimum efficient scale.B) M arginal benefits to society equals the marginal cost of production.C) F irms earning economic profit.D) P roduction at minimum long-run average cost point.。

微观经济学试题及答案英文版Microeconomics Exam Questions and Answers (English Version)Question 1:Define the law of demand and explain how it relates to the concept of elasticity.Answer 1:The law of demand states that, all else being equal, the quantity demanded of a good or service will decrease as its price increases, and vice versa. Elasticity, specifically price elasticity of demand, measures the responsiveness of the quantity demanded to a change in price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price. If the absolute value of the elasticity coefficient is greater than one, the demand is elastic; if it is less than one, the demand is inelastic; and if it equals one, the demand is unit elastic.Question 2:Explain the concept of marginal utility and how it relates to consumer behavior.Answer 2:Marginal utility is the additional satisfaction or utility derived from consuming one more unit of a good or service. It is the first derivative of the total utility function with respect to the quantity consumed. As consumers consume moreof a good, the marginal utility typically decreases, a phenomenon known as the law of diminishing marginal utility. This concept is fundamental to understanding consumer behavior and the decision-making process when allocating a limited budget among various goods and services.Question 3:What is the difference between a perfectly competitive market and a monopoly?Answer 3:A perfectly competitive market is characterized by a large number of buyers and sellers, homogeneous products, free entry and exit, and the absence of barriers to entry. Prices are determined by the market and individual firms are price takers. In contrast, a monopoly is a market structure where there is only one seller of a unique product with no close substitutes. The monopolist has market power and can set prices above marginal cost, leading to deadweight loss and inefficiency.Question 4:Explain the concept of opportunity cost and give an example.Answer 4:Opportunity cost is the value of the next best alternative that is forgone when making a choice. It represents the benefits an individual, investor, or business misses out on when choosing one alternative over another. For example, if a farmer has a choice between growing wheat or corn on a piece of land, the opportunity cost of choosing to grow wheat isthe profit that could have been earned from growing corn.Question 5:What are the factors that determine the shape of a firm's supply curve?Answer 5:The shape of a firm's supply curve is determined by the relationship between the cost of production and the quantity supplied. If the marginal cost of production is constant, the supply curve will be perfectly elastic (horizontal). If the marginal cost increases as production increases, the supply curve will be upward sloping. Factors such as technology, input costs, and the availability of resources can influence the shape of the supply curve.End of ExamPlease note that this is a sample exam and the questions and answers provided are for illustrative purposes only.。

Chapter 11. Economic analysis:A) involves some simplifications of reality.B) is only vaguely related to reality because if it did so coincide, it would not still be theory.C) is impossible, because of the impossibility of a controlled experiment.D) if it is good theory, involves no simplification of reality.E) involves so much distortion of reality as to be worthless.Ans: A2. What are economic goods?A) Goods that are very expensive.B) Goods that are in scarce or limited supply.C) Goods that a country produces and then trades to another county.D) Goods that are vital to an individual's welfare.E) All of the above.Ans: B3. "Scarcity" in economics refers basically to:A) periods of famine.B) monopolization of existing supplies of goods.C) monopolization of resources to provide goods.D) monopolization of outlets to sell goods.E) none of the above.Ans: E4. "Distribution" in economics refers to:A) retailing, wholesaling, and transportation.B) what.C) how.D) for whom.E) none of the above.Ans: D5. The three questions of what, how, and for whom:A) relate to the three factors of production.B) exist because of scarcity.C) are more of a problem in a market economy.D) are more of a problem in a command economy.E) are no longer relevant.Ans: B6.The description of economics as, "cool heads in the service of warm hearts", means that:A) allocating scarce resources may require painful decisions.B) costs and benefits need to be weighed objectively.C) the proper balance must be struck between the discipline of the market and the generosity of the welfare state.D) all of the above.E) none of the above.Ans: D7. When moving along a production possibilities frontier, the opportunity cost to society of obtaining more of one of the two goods:A) is measured in dollar terms.B) usually decreases as more of the good is produced.C) is measured by the amount of the other good that must be given up.D) is measured by the additional resources that must be used to produce the good.E) is usually constant.Ans: C8.These data reflect three possible combinations of food and nothing that can be produced from a given set of resources.Food 10 5 0Clothing O X 50Refer to the above data. If both clothing and food always use all inputs in the same proportion, then X must be:A) 25.B) more than 25.C) less than 25.D) 50.E) cannot not be determined from the dataAns: A9. Being on the production-possibility frontier between guns and butter means that:A) it is impossible to produce any more guns.B) it is impossible to produce any more butter.C) more guns can be produced only by doing without some butter.D) population is in equilibrium.E) if society becomes more productive in producing butter, then we can have more butterbut not more guns.Ans: C10. A shift in a production-possibility frontier can result from:A) unemployment.B) inflation.C) changes in production techniques.D) changes in the combination of goods produced.E) changes in consumers' tastes.Ans: C11Figure 1-1Which point on the production-possibility frontiers drawn in Figure 1 indicates no consumption goods being produced?A) A.B) B.C) C.D) D.E) E.Ans: E12. Of the following points, which point reflects the most efficient use of available resources in relation to frontier AE in Figure 1-1?A) F.B) G.C) C.D) H.E) Cannot tell from the information provided.Ans: C13.Relative to frontier A'E' in Figure 1-1, which of the following points is least efficient?A) B'.B) C'.C) B.D) C.E) F.Ans: E14. Point A on which panel in Figure 1-2 represents an inefficient use of resources?A) Panel A.B) Panel B.C) Panel C.D) Panel D.E) Panel E.Ans: D15. For a theory to be useful, it must be confirmed in each test case.Ans: FalseCHAPTER 21. In a market system, the what decision is made most basically byA) representative government.B) national planning.C) bankers.D) advertisers and their ability to persuade buyers.E) spending decisions of those with money.Ans: E2. In a market economy, the presumed harmony between individual and public interest depends upon:A) the good will of private business people.B) careful planning and coordination of economic activity.C) altruism on the part of consumers.D) competitive markets and the pursuit of self-interest by individuals.E) the wisdom of government decisions.Ans: D3. Pollution control policy is directed first and foremost at improving:A) equity.B) efficiency.C) stability.D) all of the above.E) none of the aboveAns: B4. Who is in charge of a market economy? That is, what agents and factors are the most important in determining market outcomes?A) Large companies.B) Congress and the president.C) Consumers alone.D) All producers.E) Consumers and technology.Ans: E5. The principle of the "invisible hand" claims that:A) the selfish pursuits of everyone's own interest will lead to the best good for all under market competition.B) government must gently guide economic activity so that the best for all will be attained.C) government policies work like an invisible hand, steering resources to their best use.D) producers must quietly cooperate so that prices are not so low as to cause losses.E) none of the above.Ans: A6. Consumers vote their dollars primarily in:A) labor markets.B) land markets.C) capital markets.D) goods markets .E) none of the above.Ans: D7. Which of the following statements is true of specialization?A) Specialization is inconsistent with the idea of individual freedom.B) Economies that practice a division of labor are morally superior to those that do not.C) In accepting specialization, a person sacrifices his or her own interests for the sake of society's interest.D) While specialization has enormous advantages, the costs outweigh them.E) Increased productivity is more likely to be achieved through specialization.Ans: E8. Which of the following is not an example of government regulation designed to curb a negative externality?A) Anti-child labor laws.B) Anti-pollution laws.C) A national sales tax.D) Legislation against strip mining.E) The Clean Air Act.Ans: C9. Prices in factor markets are primarily determined byA) government regulation.B) big business collusion.C) the interaction of business supply without household demand.D) the interaction of household supply with business demand.E) none of the above.Ans: D10. An economy dominated by imperfect competition is characterized byA) too much output, and low prices compared to perfect competition.B) same amount of output, and low prices compared to perfect competition.C) too little output, and low prices compared to perfect competition.D) too little output, and high prices compared to perfect competition.E) too much output, and high prices compared to perfect competition.Ans: D11. Which of the following is the key requirement for imperfect competition?A) Advertising.B) Many buyers.C) Many sellers.D) Ability of a buyer or seller to affect a good's price.E) Government policies.Ans: D12. Of the three basic problems in our modern economy, prices in a market system solve:A) what and for whom, but physical scientists solve how.B) what and how, but for whom is determined by social scientists.C) how and for whom, but Congress solves the what.D) each of the above, and no two are contradictory.E) none of the above is accurate.Ans: E13. Which of the following would best determine, in a market economy, the answer to the for whom question?A) Fairness.B) International trade patterns.C) Pricing of factors of production that people own.D) Cost minimization.E) Consumers' tastes and needs.Ans: C14. How goods are produced is determined by:A) consumer demand.B) government intervention to force businesses to produce goods cheaply.C) big business activity.D) business competition to buy factor inputs and sell goods most cheaply.E) none of the above.Ans: D15. A "mixed economy may involve both perfect and imperfect competition.Ans: TrueCHAPTER 31.If E were the old equilibrium in the market for wheat in the figure below, and E' the new one, which of the following could have caused the change?A) Consumer income rose, causing a supply shift.B) Bad weather caused a supply shift.C) Consumer income rose, causing a demand shift.D) Supply and demand both shifted.E) None of the above are plausible descriptions.Ans: C2. The demand curve for a normal good will shift to the left if:A) income increases.B) population increasesC) the price of a substitute good decreases.D) all the above.E) none of the above.Ans: C3. A price at which the amount people wish to buy exceeds the amount that people wish to produce (given upward-sloping supply curves):A) lies above the equilibrium, market clearing price.B) lies below the market clearing price.C) will induce a shift in the demand schedule to achieve equilibrium.D) is impossible.E) is none of the above.Ans: B4. An increase in the supply of commodity X for any given price of X could be expected to be caused byA) an increase in the prices of other commodities.B) an increase in the prices of factors of production important to this commodity.C) a reduction in the prices of factors of production important to this commodity.D) an increase in consumer income.E) none of the above.Ans: C5. Given the supply and demand curves drawn for a normal good in Figure 3-2, an increase in income can be expected to cause:A) equilibrium price and quantity to increase.B) equilibrium price to increase and equilibrium quantity to fall.C) equilibrium price to increase while equilibrium quantity holds steady.D) equilibrium price and quantity to fall.E) equilibrium price to fall and equilibrium quantity to climb.Ans: A6. Let P* and Q* represent market clearing price and quantity, respectively. Given the supply and demand curves drawn in Figure 3-2, an increase in the price of an input employed in the production of Q can be expected to cause:A) P* and Q* to climb.B) P* to climb while Q* falls.C) P* to climb while Q* holds steady.D) P* to fall while Q* climbs.E) P* and Q* to fall.Ans: B7. An increase in price will lead to a lower quantity demanded because:A) suppliers will supply only the smaller amount.B) quality deteriorates.C) people will purchase less of the good.D) all of the above.E) none of the above.Ans: C8. Upward-sloping supply curves are the result of:A) increasing returns to scale.B) increasing costs of production.C) changes in government policies.D) changes in technology.E) none of the aboveAns: E9. Suppose that at the current market price, the amount which producers wish to produce and sell exceeds the amount that consumers wish to purchase. This price:A) lies above the market clearing price.B) lies below the market clearing price.C) is impossible.D) will induce a shift in the demand schedule.E) none of the above.Ans: A10. In a competitive market, the market clearing quantity is determined primarily by:A) the supply of the good.B) the cost of producing the good in question.C) the interaction of supply and demand.D) the decisions of the buyers as to how much they are willing to pay.E) all of the above.Ans: E11.Let P* and Q* in Figure 3-4 represent market clearing price and quantity, respectively. Given the supply and demand curves drawn in Figure 3-4, a reduction in the price of a substitute good for Q can be expected to cause:A) P* and Q* to climb.B) P* to climb while Q* declines.C) P* to climb while Q* holds fixed.D) P* to fall while Q* climbs.E) P* and Q* to fall.Ans: E12. Let P* and Q* represent market clearing price and quantity, respectively. Given the supply and demand curves drawn in Figure 3-4, a reduction in the price of an input used in the production of Q can be expected to cause:A) P* and Q* to climb.B) P* to climb while Q* falls.C) P* to climb while Q* holds steady.D) P* to fall while Q* climbs.E) P* and Q* to fall.Ans: D13. Assume that automotive workers go on strike, so that the production of cars falls. Given the supply and demand curves in Figure 3-5, which of the following would result in comparison to the initial equilibrium position?A) Prices fall, Quantity fallsB) Prices rise, Quantity fallsC) Prices rise, Quantity risesD) Prices and Quantity do not change.E) None of the above.Ans: B14. Assume that A represents demand for cars and B represents supply of cars. If A: P = 10,000 - 2Q and B: P = 6000 + 2Q, the equilibrium price and quantity are:A) P = 1000, Q = 8000B) P = 800, Q = 100C) P = 8000, Q = 1000D) P = 100, Q = 800E) None of the above.Ans: C15. An increase in demand means a movement to a higher price along a given demand curve.Ans: FalseCHPA TER 41. Rank the points A, B and C on the demand curve in the figure below in order of greatest to least elasticity of demand.A) C, A, B.B) B, A, C.C) A, B, C.D) They are of equal elasticity.E) More information is needed.Ans: C2. An increase in supply will lower price unless:A) supply is perfectly price inelastic.B) demand is perfectly price elastic.C) it is followed by a reduction in quantity demanded.D) demand is highly price inelastic.E) both demand and supply are highly price inelastic.Ans: B3. A straight-line demand curve has which of the following properties?A) Constant slope and varying price elasticity.B) Constant income elasticity with varying slope.C) Varying slope and varying cross elasticity.D) Constant slope and constant price elasticity.E) None of the above may be asserted in general.Ans: A4. If the burden of an excise tax is shifted forward completely onto the consumer, we can say that:A) supply is perfectly price elastic.B) demand is perfectly price elastic.C) demand is more price elastic than supply.D) supply is price inelastic and demand is price elastic.E) none of the above.Ans: A5. In "tight" housing markets, rent controls are often applied to hold the price of housing to a "reasonable" level. What is the immediate effect of this price policy with respect to the allocative functions of prices, and the relative incomes of tenants and landlords?A) The allocative function of prices is impaired, but the tenants are prevented from gaining at the expense of the landlords.B) The allocative function of prices is not impaired, and the tenants are prevented from gaining at the expense of landlords.C) The allocative function of prices is impaired, and the tenants who find housing gain at the expense of landlords.D) The allocative function of prices is not impaired, but the landlords gain at the expense of tenants who do not find housing.E) None of the above.Ans: C6. The price elasticity of supply shown in Figure 4-8 between points A and B is:A) .1.B) .5.C) 1.D) 5.E) none of the above.Ans: C7. Suppose that successive price reductions reduce total revenue. The supplier faces a demand curve that is, in this region:A) price elastic.B) unitary elastic.C) infinitely price elastic.D) indeterminate.E) price inelastic.Ans: E8. "If its advocates are correct, the minimum-wage bill passed by the House of Representatives would raise wages for nearly 7 million underpaid workers, but would have no noticeable effect on employment." The quotation implies that the demand for the labor services of the 7 million workers mentioned, with respect to the price of labor services, has elasticity equal to:A) 2.B) 5.C) 1.D) 0.E) .5Ans: D9. A horizontal demand curve may be described as:A) relatively price elastic.B) perfectly price inelastic.C) relatively price inelastic.D) perfectly price elastic.E) unit elastic.Ans: D10. f a good is in fixed supply, then the incidence of a taxA) falls entirely on the consumers.B) falls mostly on the producers and partly on consumers.C) falls entirely on the producers.D) depends on the elasticity of demand.E) none of the above.Ans: C11. Refer to the Figure 4-13. What is the elasticity of the demand curve DD between points A and B?A) 3.67B) 1.8C) 1.0D) 0.56E) None of the aboveAns: A12. Refer to Figure 4-13. What is the elasticity of the demand curve DD between points B and C?A) 3.33B) 1.8C) 1.0D) 0.56E) None of the aboveAns: B13. Refer to Figure 4-13. What is the elasticity of the demand curve DD between points C and D?A) 3.33B) 1.8C) 1.0D) 0.56E) None of the aboveAns: C14. If at a price of $8, quantity bought will be 3300 per day, and at $12, quantity bought will be 2700 per day, then the price elasticity of demand is approximately:A) 0.4B) 0.5C) 0.7D) 2.0E) 2.5Ans: B15. Given a relatively, but not perfectly, price elastic supply curve, an increase in demand will certainly:A) raise price but leave quantity sold unchanged.B) raise price and increase quantity sold.C) lower price, since supply cannot increase except through the inducement of higher price.D) reduce quantity sold but leave price unchanged.E) do none of the above, since "increase in demand" refers to a movement along a given demand curve.Ans: BCHAPTER 51.In the figure below, the drop in consumer surplus resulting from an increase in price from 5 to10 is given by the area:A) FGHB) CEHC) FGDCD) CEGFE) DEGAns: D2. A change in which of the following should not affect the demand for hot coffee?A) The price of coffee.B) The price of tea.C) Consumer incomes.D) The weather.E) All the above affect the demand for coffee.Ans: A3. The paradox of value notes that:A) there is no rational explanation why people should set a high value on objects such as diamonds, which have little real usefulness.B) the price obtained from selling any commodity may bear little relationship to the cost of producing it.C) supply and demand curves do very little to explain how value (or price) is determined.D) no one consumer has any control over the price (or value) of a commodity, but consumers collectively do have such control.E) there is no consistent relationship between the total utility obtained from any commodity and the price charged for it.Ans: E4. To be in equilibrium (i.e., to maximize satisfaction), the consumer must:A) purchase no inferior goods.B) equalize the marginal utilities of the last unit purchased of every commodity.C) be sure that the prices of all commodities purchased are proportional to their total utilities.D) be sure that the price of each good is equal to the marginal utility of money.E) allocate income so that the last penny spent on any good generates the same increment of utility as the last penny spent on any other good.Ans: E5. If I get 10 units of total utility (TU) from 2 oranges, 14 of TU from 3 oranges, and 17 of TU from 4 oranges, I obey the law of diminishing marginal utility because:A) MU falls as consumption increases.B) TU increases as consumption increases.C) TU > MU.D) MU > TU.E) MU = TU.Ans: A6. For a normal good, the substitution effect of a price increase:A) pushes the quantity demanded down along with the income effect.B) pushes the quantity demanded down enough that the income effect cannot push demand higher.C) pushes the quantity demanded up, but not enough to dominate an income effect that ultimately pushes demand down.D) has an effect on the quantity demanded that is identical to the income effect.E) pushes the quantity demanded up along with the income effect.Ans: A7. Table 5-1Total UtilityUnits 1 2 3 4 5Good X 120 216 288 336 360Good Y 90 160 220 270 305Refer to Table 5-1. If good X costs $6 per unit and good Y costs $5 per unit, at what quantities of X and Y is utility maximized if the budget is $31?A) X = 2, Y = 3B) X = 4, Y = 5C) X = 3, Y = 4D) X = 3, Y = 3E) None of the aboveAns: D8. Refer to Table 5-1. Suppose now X costs $8 per unit and Y costs $5 per unit. For what amounts of X and Y are (marginal utility)/price equal?A) X = 3, Y = 4B) X = 4, Y = 5C) X = 2, Y = 3D) X = 1, Y = 2E) None of the aboveAns: C9. Refer to Figure 5-6. What is total market demand at P = 5?A) 0B) 5C) 10D) 15E) None of the aboveAns: B10. Suppose Mary is currently spending all her income on cookies and milk. The marginal utility of cookies is 15, the price of cookies is $5, the marginal utility of milk is 10, and the price of milk is $1. To increase her total utility, Mary should:A) buy more cookies and less milk.B) buy more milk and fewer cookies.C) buy more of both goods.D) buy less of both goods.E) do nothing. She is currently maximizing utility with her limited budget.Ans: B11. The income effect describes:A) the percentage change in consumption of a good given some percentage change in the price of another good.B) the fact that when the price of a good falls, consumers will substitute it into their market baskets in place of relatively more expensive goods.C) the fact that when the price of a good falls, consumers will have more purchasing power with the same nominal income.D) the effect of a change in consumer income on the quantity of a good demanded.E) an upward-sloping demand curve.Ans: C12. Assume household income is $30, the price of X is $6 and the price of Y is $3. Refer to table 5-2. What quantities of X and Y will be purchased by the household?Marginal UtilityUnits 1 2 3 4 5 6 7Good X 72 48 30 24 18 12 6Good Y 60 42 30 15 10 5 2A) X = 2, Y = 6B) X = 3, Y = 4C) X = 3, Y = 3D) X = 4, Y = 2E) None of the aboveAns: B13. A good which sells for a higher price than one which is more important for welfare reflects the concept of:A) complementarity in demand.B) substitution.C) marginal or total utility.D) the paradox of value.E) law of diminishing marginal utility.Ans: D14. At my equilibrium demand choices for goods 1 and 2:A) MU1 = MU2B) MU1/Q1 = MU2/Q2C) MU1/P1 = MU2/P2D) P1 = P2E) none of the above.Ans: C15. The rule for rational budget allocation by a consumer is that the marginal utility of each good:A) purchased divided by its price must be equal.B) purchased multiplied by its price must be equal.C) must be zero.D) must be infinite.E) none of the above.Ans: ACHAPTER 61. The marginal product of labor is the:A) output which it could produce unaided by machinery or other factors of production.B) extra revenue which a firm will get by selling the output of one additional worker.C) amount of extra output that is produced when one extra worker is added to a fixed amount of other factors.D) amount of extra output that is produced when one worker is added and other factors of production are increased proportionately.E) none of the above.Ans: CTotal Product withVarious Input CombinationsLandLabor 10 15 200 0 0 01 20 20.67 20.52 38 39.33 40.03 54 57.00 58.54 68 72.67 76.05 80 87.33 92.56 90 102.00 108.02. Suppose that production is defined by the function recorded in the table above. The marginal product of the 4th unit of labor, given 20 units of land, is equal to:A) 15.5B) 17.5C) 19.0D) 1.5E) none of the aboveAns: B3. Suppose that production is defined by the function recorded in the table above. Given 6 units of labor, the marginal product of increasing land from 10 units to 15 units is equal to:A) 15.B) 12.C) 3.D) 2.4.E) none of the above.Ans: D4. Suppose that production were represented by the production function displayed in the table above. You would conclude that:A) land displayed diminishing returns.B) labor displayed diminishing returns.C) production displayed constant returns to scale.D) all of the above were true.E) none of the above were true.Ans: D5. The law of diminishing returns is expressed in terms of an eventual decline in the:A) total product of an input.B) average product of an input.C) marginal product of an input.D) returns to scale of an input.E) broadest general productivity measures only.Ans: C6. The short run is a period of time so short that:A) output cannot be varied.B) at least one input is fixed.C) all inputs are fixed.D) all inputs are variable.E) none of the above.Ans: B7. For the law of diminishing returns to hold, the missing blank in this table must be:Quantity Totalof Labor Product0 01 -2 8A) 4.B) 2.C) more than 4.D) less than 4.E) 0.Ans: C8. Suppose that you have drawn a total product curve for labor given a specific technology. Nowlet some sort of technological change increase the productivity of labor. A new total product curve would have to be drawn:A) above the old with a steeper slope for any level of employment greater than zero.B) above the old with a flatter slope for any level of employment greater than zero.C) below the old with a steeper slope for any level of employment greater than zero.D) below the old with a flatter slope for any level of employment greater than zero.E) directly over the old curve signifying no change in the total product graph; only the marginal product graph would change.Ans: A9. Suppose that production of a particular good requires two inputs, labor (L) and capital (K). If K is fixed, which of the panels in Figure 6-2 possibly represent(s) decreasing marginal productivity of labor?A) Panel a.B) Panel b.C) Panel c.D) All of the above.E) None of the above.Ans: B10. Suppose that two inputs, K and L, are variable and increase at the same rate. Which one of the panels in Figure 6-2 represents Increasing Return to Scale (IRS)?A) Panel a.B) Panel b.C) Panel c.D) Panel d.E) None of the above.Ans: C11. The production function is a technical law which:A) relates dollar inputs to dollar outputs.B) indicates the best way to combine outputs in the marketplace.C) indicates the best level of output to produce.D) describes a relationship between inputs and output in a production process.E) relates marginal products to factor prices.Ans: D12. Average product of labor measures:A) the addition to total output when an additional worker is hired.B) total product divided by total cost.C) the marginal product of the last worker multiplied by the wage rate.D) total product divided by the wage rate.E) total product divided by the quantity of labor.Ans: E13. The employment of which of the following inputs might be adjusted in the short run?A) Physical capital.B) Number of hours worked by labor.C) Units of energy required per unit output.D) Units of material required per unit output.E) None of the above.Ans: B14. When will the average product of labor increase?A) New technology improves the quality of capital used by labor.B) Marginal product of labor is increasing.C) Additional workers are hired.D) Both A and C.E) Both A and B.Ans: E15. As businesses grow, their need for capital typically tends to:A) increase.B) decrease.。