东北财经大学微观经济学纸质练习试卷姓名：学号：得分：A Multiple choice (2’*30=60’)1) A person's consumption possibilities is defined by the budget line becauseA) it marks the boundary between what is affordable and unaffordable.B) it represents the individual's preference for different combinations of goods.C) it marks the boundary between what can be produced and what is unattainable given the current state of technology and resources.D) all consumers must consume on their budget line.Answer: A2) Which of the following statements is true?A) As more of a good is consumed, its total utility increases, unless the good is subject to diminishing marginal utility.B) As more of a good is consumed, its total utility increases, even if the good is subject to diminishing marginal utility.C) No two people have identical utility functions, just as no two people have identical fingerprints.D) Both A and C above.Answer: B3) Which of the following is NOT an assumption of marginal utility theory?A) A consumer derives utility from the goods consumed.B) Each additional unit of consumption yields additional utility.C) Consumers maximize their total utility.D) As more of a good is consumed, the decrease in the marginal utility from the good means that the total utility from the good decreases also.Answer: D4) The principle of diminishing marginal utility says thatA) marginal utility is negative as the quantity of the good consumed increases.B) total utility decreases as the quantity of the good consumed increases.C) total utility increases by smaller and smaller amounts as the quantity of the good consumed increases.D) total utility increases by larger and larger amounts as the quantity of the good consumed increases.Answer: C5) In the figure above, the curve that shows the diminishing marginal utility isA) total utility curve A because it gets steeper as consumption of tomatoes increases.B) total utility curve A because it is higher than total utility curves B or C.C) total utility curve C because it gets flatter as consumption of tomatoes increases.D) total utility curve C because it is lower than total utility curves B and C.Answer: C6) The variables that determine a household's budget line areA) its preferences and income.B) its preferences and prices.C) prices and income.D) None of the above are correct.Answer: C7) Moving along a given budget line,A) prices and real income both decrease.B) prices fall and real income is constant.C) real income decreases and prices are constant.D) prices and real income are constant.Answer: D8) When the total product curve is drawn in a figure that measures employment along the horizontal axis, it is a graph that shows theA) minimum cost of producing a given amount of output using different techniques.B) maximum profit attainable for each unit of output sold per unit of labor employed.C) maximum output attainable for each quantity of labor employed.D) minimum output attainable for each quantity of labor employed.Answer: C9) A firm that is technologically efficientA) must be economically efficient, but a firm that is economically efficient is not always technologically efficient.B) must be economically efficient, and a firm that is economically efficient must always be technologically efficient.C) is not always economically efficient, and a firm that is economically efficient is not always technologically efficient.D) is not always economically efficient, but a firm that is economically efficient must always be technologically efficient.Answer: D10) In the above figure, Mark's monthly budget line for movies and plays changed, as shown by the arrow. The change was caused byA) a decrease in Mark's income.B) an increase in Mark's income.C) a fall in the price of a play.D) a rise in the price of a play.Answer: C11) Which of the following costs are part of a firm's opportunity costs?I. costs for resources bought in marketsII. costs for resources the firm ownsIII. costs for resources supplied by the ownerA) I and IIB) I and IIIC) I onlyD) I, II, and IIIAnswer: D12) The implicit rental rate for capital includes theA) total value of a piece of capital equipment.B) interest income forgone by purchasing the piece of capital equipment.C) firm's normal profit.D) amount paid for the use of a piece of capital equipment owned by someone else.Answer: B13) Suppose the price of coffee is $3 each, the price of bagels is $2 each and a person's budget is $40. The person's real income isA) $40.B) $13.33 in terms of bagels.C) $13.33 in terms of coffee.D) $8.Answer: C14) The marginal product of labor is the change in total product from a one-unit increase inA) the quantity of labor employed, holding the quantity of other inputs constant.B) the quantity of capital employed, holding the quantity of labor constant.C) both the quantity of labor and the quantity of other inputs employed.D) the wage rate.Answer: A15) In the figure above, which budget line results in the most real income in terms of compact discs?A) ADB) BDC) CDD) Real income is equal for all three budget lines.Answer: C16) Which of the following is true regarding a perfectly competitive firm?A) The firm can charge a lower price than its competitors and thereby sell more output and increase its profits.B) The firm always earns a normal profit.C) The firm's marginal revenue continually decreases.D) The firm's minimum efficient scale is small relative to the market demand.Answer: D17) Which of the following is true regarding perfect competition?I. The firms are price takers.II. Marginal revenue equals the price of the product.III. Established firms have no advantage over new firms.A) I and IIB) II and IIIC) I, II and IIID) I onlyAnswer: C18) The demand for wheat from farm A is perfectly elastic because wheat from farm A isA) a perfect complement for wheat from farm B.B) a normal good.C) a perfect substitute for wheat from farm B.D) an inferior good.Answer: C19) A perfectly competitive firm's marginal revenueA) increases as the firm produces more output.B) decreases as the firm produces more output.C) is less than the market price of its product.D) equals the market price of its product.Answer: D20) In the above figure, the firm will produceA) 0 units.B) 5 units.C) 15 unitsD) 20 units.Answer: D21) A monopoly is best defined as a firm thatA) produces a good or service for which no close substitute exists and which is protected by a barrier that prevents other firms from selling that good or service.B) purchases its resources from only one supplier because of a barrier preventing it from buying from other suppliers.C) produces a good or service for which no close substitute exists and that sells all its output to one buyer because there is barrier preventing other buyers from purchasing the good or service.D) cannot control the price it sets for its good or service because there is barrier that prevents the firm from changing the price.Answer: A22) Given the market demand and cost data in the above figure, the existence of two firms equal sized firms producing a total of 8 million cubic feet of natural gas means that the long-run average cost of producing natural gas isA) 10 cents per cubic foot.B) 20 cents per cubic foot.C) 30 cents per cubic foot.D) 40 cents per cubic foot.Answer: B23) For a single-price monopolist, as output increases, total revenueA) initially increases and then decreases.B) initially decreases and then increases.C) increases continually.D) decreases continually.Answer: A24) Which of the following is FALSE for a profit-maximizing single-price monopolist?A) P = MCB) MC = MRC) P > MRD) None of the above because they are all true.Answer: A25) In monopolistic competition, each firm has a demand curve with a ________ and there ________ barriers to entry into the market.A) negative slope; are noB) slope equal to zero; are noC) negative slope; areD) slope equal to zero; areAnswer: A26) In the figure above, Gap maximizes its profit if it charges ________ per jacket.A) $100B) $95C) $75D) $120Answer: A27) A firm in ________ will engage in ________ to try to earn an economic profit.A) perfect competition; advertisingB) monopolistic competition; product differentiationC) perfect competition; price warsD) monopolistic competition; price warsAnswer: B28) ________ is defined as any attempt to capture consumer surplus, producer surplus or economic profit.A) SearchB) Rent seekingC) Maximizing monopoly profitsD) Price discriminationAnswer: B29) Which of the following is necessary for a monopolist to price discriminate between groups?A) The groups are identifiable.B) The groups have different willingness to pay.C) A customer from one group cannot resell to a customer in another group.D) All of the above conditions are necessary for the monopolist to price discriminate.Answer: D30) Consider the perfectly competitive firm in the above figure. At what price will long-run equilibrium occur?A) $11B) $12C) $22D) $23Answer: CB True or false (1’*20=20’)1) Tom's marginal utility from a Sobe exceeds his marginal utility of crackers. Therefore, his total utility of Sobe must exceed his total utility of crackers.Answer: FALSE2) If Tom's total utility from watching one more minute of television increases but the increase for each additional minute is smaller than the previous minute, he has diminishing marginal utility. Answer: TRUE3) A firm's minimum efficient scale is the largest quantity of output at which long-run average cost reaches its highest level.Answer: FALSE4) The magnitude of the slope of the indifference curve between steak and lobster is called the marginal rate of substitution.Answer: TRUE5) You consume only steak and lobster. Your income effect from a drop in the price of lobster is measured by a movement along your indifference curve between steak and lobster.Answer: FALSE6) If a firm produces a given amount of output using the least amount of inputs, it definitely achieves economic efficiency.Answer: FALSE7) The larger the marginal rate of substitution, the larger is the amount of one good that the consumer is willing to give up in exchange for another good and still remain at the same level of satisfaction. Answer: TRUE8) The possibility that the managers of a corporation might not always act in the best interest of its owners is an example of the principal-agent problem.Answer: TRUE9) The marginal cost curve intersects the average fixed, average variable, and average total cost curves all at their minimum points.Answer: FALSE10) In the long run, total variable cost is zero.Answer: FALSE11) If a firm is maximizing profits, the extra revenue it receives from selling its last unit of output exceeds the extra cost of producing that unit.Answer: FALSE12) Entry of new firms into a perfectly competitive market lowers the profits of the existing firms. Answer: TRUE13) In the long run, perfectly competitive firms make zero economic profit, that is, their owners make a normal profit.Answer: TRUE14) A natural monopoly is any market in which competition and entry are restricted by the granting of a public franchise, government license, patent, or copyright.Answer: FALSE15) A monopoly creates a deadweight loss because the monopoly produces less than the efficientquantity.Answer: TRUE16) In monopolistic competition, product differentiation gives the firms the power to set their prices. Answer: TRUE17) In monopolistic competition, free entry and free exit mean that in the long run firms in the industry make zero economic profit.Answer: TRUE18) In the short run, a firm in monopolistic competition produces where P = MCAnswer: FALSE19) A monopoly that can perfectly price discriminate creates no deadweight loss.Answer: TRUE20) The deadweight loss from a monopoly loss measures the inefficiency created by monopoly. Answer: TRUEC Calculation(5’*4=20)1) The table gives the total utility Jamal derives from the consumption of eclairs and cream puffs. Jamal has $12 to spend on these two confectionery goods. The price of an eclair is $3 and the price of a cream puff is $1.50.a) Jamal's budget is $12. In order for Jamal to maximize his utility, how many eclairs and cream puffs should he buy?b) Suppose the price of an eclair increase to $6. Jamal's income does not change and neither does the price of a cream puff. What combination of eclairs and cream puffs will Jamal buy now?c) Using your answers to parts (a) and (b), derive two points on Jamal's demand curve for eclairs. Answer:a) Jamal's utility maximizing combination will allocate (spend) his budget and be such that the marginal utility per dollar from the last eclair equals the marginal utility per dollar from the last cream puff. Jamal's utility maximizing combination is 3 eclairs and 2 cream puffs. At this combination, Jamal spends $9 on eclairs (3 eclairs × $3) and $3 on cream puffs (2 cream puffs ×$1.50) for a total of $12. The marginal utility of the third eclair is 99 (= 342 - 243), so the marginal utility per dollar from eclairs is 99 ÷ 3 = 33. The marginal utility of the second cream puff is 49.50 (= 103.5 - 54.0), so the marginal utility per dollar from cream puffs is 49.5 ÷ $1.50 = 33. Hence the marginal utilities per dollar are equal, so the combination of 3 eclairs and 2 cream puffs maximizes Jamal's utility.b) Jamal's new utility maximizing combination is 1 eclair and 4 cream puffs. As in part (a), this combination allocates all of Jamal's income and equalizes the marginal utility per dollar from the two goods. (Both are equal to 21.)c) When the price of an eclair is $3, Jamal buys 3 eclairs, so one point on Jamal's demand curve is the price of $3 and the quantity demanded of 3 eclairs. When the price of an eclair increases to $6, Jamal buys only 1 eclair. So another point on Jamal's demand curve is the price of $6 and quantity demanded of 1 eclair.2) Tom is stranded on a deserted island where he can only consume coconuts and crabs. Two of his indifference curves are in the figure above.a) Would Tom prefer his consumption to be at point a or at point b? At point b or at point c? Explain your answers.b) Between points a and b, what is Tom's marginal rate of substitution for a crab?Answer:a) Tom is indifferent between consuming at point a or at point b because both points are on the same indifference curve, I1. Tom would prefer to consume at point c rather than point b because point c is on a higher indifference curve, I2 versus I1.b) Between points a and b, Tom's marginal rate of substitution for a crab is 2 coconuts per crab.each firm is listed in the above table.a) What is the four-firm concentration ratio in this market?b) What is the Herfindahl-Hirschman Index for this market?c) If Firm H and Firm A merge, what is the new Herfindahl-Hirschman Index for this market?d) A severe winter causes every firm except A, B, and E to close. With only these three firms operating, Firm A's market share is 71 percent, Firm B's market share is 23 percent, and Firm C's market share is 6 percent. What is the Herfindahl-Hirschman Index for this market now? Answer:a) The four-firm concentration rate is 74 percent.b) The Herfindahl-Hirschman Index is 1,782.c) Once firms H and A merge, the new Herfindahl-Hirschman Index is 2,038.d) The Herfindahl-Hirschman Index is now 5,606.a) What is the first worker's marginal product? The second worker? The third worker? The fourth worker? The fifth worker?b) Over what range of workers is there increasing marginal returns? Over what range is there decreasing marginal returns?Answer:a) The first worker's marginal product is 10 hair stylings. The second worker's marginal product is 15 hair stylings. The third worker's marginal product is 20 hair stylings. The fourth worker's marginal product is 15 hair stylings. The fifth worker's marginal product is 10 hair stylings.b) There are increasing marginal returns for the first 3 workers. After the third worker, there are decreasing marginal returns.。
