5学原理》（微观）第五版测试题库（06）曼昆经济学原理第五版测试题库（微观）

一、选择题：（每小题1分，共20分）1.一国的生产可能性曲线上的点表示（D）A.通货膨胀B.该国可利用的资源减少及技术水平降低C.失业或者资源没有被充分利用D.社会使用既定的生产资源所能生产商品的最大组合2.学校里一块新停车场的机会成本是（ C ）A.由此引发的所有费用B.由用于建造停车场的机器设备的折旧大小决定C. 由用于其他用途产生的最大价值决定D.由在停车场停车所需的费用来决定3.下列有关无差异曲线的特点说法正确的是（ A ）A. 无差异曲线的斜率为负值B. 同一平面中，两条无差异曲线可能会相交于一点C. 无差异曲线向右上方倾斜，并凸向原点D.离原点越远，无差异曲线代表的效用水平越小4. 如果商品A和B是替代的，则A的价格下降将造成（ D ）A.A的需求曲线向右移动B.A的需求曲线向左移动B.B的需求曲线向右移动D.B的需求曲线向左移动5.两种商品中若其中的一种价格变化时，这两种商品的购买量同时增加或减少，则这两种商品的交叉价格弹性系数为（ A ）A.负B.正C. 零D. 16.市场均衡要求（ D ）A.政府平衡供求双方的力量B.价格与数量相等C.价格保持不变D.在某一价格水平上，买者想要购买的数量恰好等于卖者想卖的数量7. 当总效用增加时，边际效用应该（ C ）A.为正值，并其值不断增加B. 为负值，并其值不断减少C.为正值，并其值不断减少D. 以上任何一种情况都有可能8.当生产函数Q=f （ L，K ）的APL为递减时，则MPL（ D ）。

A.递减且为正B.递减且为负C.为零D.上述情况都可能9.在以下四种情况中，哪一种实现了生产要素的最适组合：（ C ）A. MPK / PK<MPL/ PLB. MPK / PK>MPL / PLC. MPK / PK=MPL/ PLD. MPK / PK ≥MPL/ PL10.边际成本低于平均成本时（ B ）。

A.平均成本上升B.平均成本下降C.成本下降D.平均可变成本上升11.长期边际成本曲线呈U型的原因是（ A ）。

第三章6．下表描述了Baseballia国两个城市的生产可能性：一个工人每小时生产的红补袜子量一个工人每小时生产的白袜子量A．没有贸易，波士顿一双白袜子价格（用红袜子表示）是多少芝加哥11双白袜子价格是多少答：没有贸易时，波士顿1 双白袜子价格是1 双红袜子，芝加哥1 双白袜子价格是2 双红袜子。

B．在每种颜色的袜子生产上，哪个城市有绝对优势哪个城市有比较优势答：波士顿在生产红、白袜子上都有绝对优势。

波士顿在生产白袜子上有比较优势，芝加哥在生产红袜子上有比较优势。

C．如果这两个城市相互交易，两个城市将分别出口哪种颜色的袜子答：如果它们相互交易，波士顿将出口白袜子，而芝加哥出口红袜子。

D．可以进行交易的价格范围是多少答：白袜子的最高价格是2 双红袜子，最低价格是1 双红袜子。

红袜子的最高价格是1 双白袜子，最低价格是1／2 双白袜子。

7．假定一个美国工人每年能生产100件衬衣或20台电脑，而一个中国工人每年能生产100件衬衣或10台电脑。

A．画出这两个国家的生产可能性边界。

假定没有贸易，每个国家的工人各用一半的时间生产两种物品，在你的图上标出这一点。

答：两个国家的生产可能性边界如图3 一4 所示。

如果没有贸易，一个美国工人把一半的时间用于生产每种物品，则能生产50 件衬衣、10 台电脑；同样，一个中国工人则能生产50 件衬衣、5 台电脑。

图3 一4 生产可能性边界B．如果这两个国家进行贸易，哪个国家将出口衬衣举出一个具体的数字例子，并在你的图上标出。

哪一个国家将从贸易中获益解释原因。

答：中国将出口衬衣。

对美国而言，生产一台电脑的机会成本是5 件衬衣，而生产一件衬衣的机会成本为1/5 台电脑。

对中国而言，生产一台电脑的机会成本是10 件衬衣，而生产一件衬衣的机会成本为1/10 台电脑。

因此，美国在生产电脑上有比较优势，中国在生产衬衣上有比较优势，所以中国将出口衬衣。

衬衣的价格在1/5 到1/10 台电脑之间。

ANS: TDIF: 2 REF: 10-0 NAT: An alytic TOP:Exter nalities LOC: Markets, market failure, and exter nalities MSC:In terpretive 4. In a market characterized by externalities, the market equilibrium fails to maximize the total ben efit to society as a whole.ANS:T DIF: NAT:An alytic LOC: TOP: Exter nalities MSC: 1 REF: 10-0 Markets, market failure, and exter nalities Defin iti onal5. In a market with positive externalities, the market equilibrium quantity maximizes the welfare of society as a whole.ANS: FNAT: An alytic TOP:Exter nalities DIF: 1 REF: 10-0 LOC: Markets, market failure, and exter nalities MSC: In terpretive6. Barking dogs cannot be con sidered an exter nality because exter nalities must be associated with some form of market excha nge. ANS: FNAT: An alytic TOP:Exter nalities DIF: 1 REF: 10-0 LOC: Markets, market failure, and exter nalities MSC: Applicative 7. The social cost of pollution includes the private costs of the producers plus the costs to those bystandersadversely affected by the polluti on. ANS:T DIF: 1 REF: 10-1 NAT:An alytic LOC: Markets, market failure, and exter nalities TOP: Exter nalities MSC: Defin iti onal8. Orga ni zers of an outdoor con cert in a park surrou nded by reside ntial n eighborhoods are likely to con sider the no iseand traffic cost to reside ntial n eighborhoods whe n they assess the finan cial viability of the con certven ture.ANS:F DIF: 1 REF: 10-1 NAT:An alytic LOC: Markets, market failure, and exter nalities TOP:Negative exter nalities MSC: Applicative 9. Whe n a driver en ters a crowded highway he in creases the travel times of all other drivers on the highway. This is anexample of a n egative exter nality.ANS:T DIF: 1 REF: 10-0 NAT:An alytic LOC: Markets, market failure, and exter nalities TOP:Exter nalities MSC: In terpretive 10. When firms internalize a negative externality, the market supply curve shifts to the left.Chapter 10 Exter nalitiesTRUE/FALSE1. Markets sometimes fail to allocate resources efficie ntly.ANS: T DIF:2 REF: 10-0NAT: An alytic LOC: Markets, market failure, and exter nalities TOP: Market failureMSC: In terpretive 2. Whe n a tran sacti on betwee n a buyer and seller directly affects a third party, the effect is called an exter nality.DIF: 1 REF: 10-0 LOC: Markets, market failure, and exter nalities MSC: Defin itio nal3. Buyers and sellers n eglect the exter nal effects of their acti ons whe n decid ing how much to dema nd or supply.ANS: TNAT: An alytic TOP:Exter nalities11. Gover nment subsidized scholarships are an example of a gover nment policy aimed at correct ing n egative exter nalities associatedwith educati on.ANS:F DIF: 1 REF: 10-1 NAT:An alytic LOC: Markets, market failure, and exter nalities TOP:Positive exter nalities MSC: Applicative 12. A con gesti on toll imposed on a highway driver to force the driver to take into accou nt the in crease in travel time she imposeson all other drivers is an example of internalizing the externality.ANS:T DIF: 2REF: 10-1 NAT: An alytic LOC: Markets, market failure, and exter nalities TOP: Corrective taxesMSC: In terpretive 13. Negative externalities lead markets to produce a smaller quantity of a good than is socially desirable, while positive externalities lead markets to produce a larger qua ntity of a good tha n is socially desirable.ANS:F DIF: 2 REF: 10-1 NAT:An alytic LOC: Markets, market failure, and exter nalities TOP:Negative exter nalities | Positive exter nalities MSC: In terpretive 14. The gover nment can intern alize exter nalities by tax ing goods that have n egative exter nalities and subsidiz inggoods that have positive exter nalities.ANS:T DIF: 2 REF: 10-1NAT: An alytic LOC: Markets, market failure, and exter nalities TOP: Negative exter nalities | Positive externalitiesMSC: Applicative 15. If the social value of producing robots is greater than the private value of producing robots, the private market produces too fewrobots.ANS:T DIF: 2 REF: 10-1 NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Positive exter nalities | Tech no logy spillovers MSC:An alytical 16. The pate nt system gives firms greater incen tive to en gage in research and other activities that adva neetech no logy.ANS:T DIF: 2 REF: 10-1NAT: An alytic LOC: Markets, market failure, and exter nalities TOP: Tech nology spillovers MSC:Applicative 17. Gover nment in terve nti on in the economy with the goal of promot ing tech no logy-produc ing in dustries isknown as pate nt policy.ANS: F DIF:1REF: 10-1 NAT: An alytic LOC: Markets, market failure, and exter nalities TOP: In dustrial policyMSC: Defi nitio nal 18. A tech no logy spillover is a type of n egative exter nality.2 REF: 10-1 Markets, market failure, and exter nalities MSC: In terpretive 19. Even if possible, it would be inefficient to prohibit all polluting activity.DIF: 2 REF: 10-2LOC: Markets, market failure, and exter nalities MSC: Applicative20. Whe n correct ing for an exter nality, comma nd-a nd-c on trol policies are always preferable tomarket-based policies.ANS: FDIF: NAT:An alytic LOC: TOP:Tech no logy spillovers ANS: T NAT: An alytic TOP: Exter nalities21.Corrective taxes enhance efficie ncy, but the cost to adm ini ster them exceeds the reve nue they raise for the gover nment. ANS: F DIF:1REF: 10-2 NAT: An alytic LOC: Markets, market failure, and exter nalities TOP: Corrective taxesMSC: In terpretive 22. Corrective taxes cause deadweight losses, reduc ing econo mic efficie ncy.2 REF: 10-2 Markets, market failure, and exter nalitiesMSC: In terpretive 23. Most econo mists prefer regulati on to taxati on because regulati on corrects market in efficie ncies at a lower cost tha n taxation does.2 REF: 10-2 Markets, market failure, and exter nalitiesMSC: Applicative 24.A corrective tax places a price on the right to pollute. ANS:T DIF: 2REF: 10-2 NAT: An alytic LOC: Markets, market failure, and exter nalities TOP: Corrective taxesMSC: In terpretive 25.According to recent research, the gas tax in the United States is lower than the optimal level. ANS:T DIF: 2REF: 10-2 NAT: An alytic LOC: Markets, market failure, and exter nalities KEY: Corrective taxesMSC: Applicative 26.The least expensive way to clean up the environment is for all firms to reduce pollution by an equal perce ntage. ANS:F DIF: 2REF: 10-2 NAT: An alytic LOC: Markets, market failure, and exter nalities TOP: Corrective taxesMSC: In terpretive 27.Corrective taxes are more efficie nt tha n regulati ons for keep ing the en vir onment clea n. ANS:T DIF: 1 REF: 10-2NAT: An alytic LOC: Markets, market failure, and exter nalities TOP: Corrective taxes | Tradable polluti on permits MSC:Applicative 28.A market for pollution permits can efficiently allocate the right to pollute by using the forces of supply and dema nd. ANS:T DIF: 1 REF: 10-2 NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Tradable pollution permitsMSC: Applicative 29.Econo mists believe that the optimal level of polluti on is zero. ANS:F DIF: 2 REF: 10-2NAT: An alytic LOC: Markets, market failure, and exter nalities TOP: Tradable pollution permitsMSC: In terpretive 30. The Environmental Protection Agency (EPA) cannot reach a target level of pollution through the use ofpolluti on permits.ANS:F DIF: 1 REF: 10-2NAT: An alytic LOC: Markets, market failure, and exter nalities TOP: Tradable pollution permitsMSC: Applicative 31.Social welfare can be enhanced by allowing firms to trade their rights to pollute. 32.Firms that can reduce pollution easily would be willing to sell their pollution permits. ANS: T DIF: 2 REF: 10-2ANS: F DIF:NAT: An alytic LOC: TOP: Corrective taxesANS: F DIF:NAT: An alytic LOC: TOP: Corrective taxesNAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Tradable pollution permits MSC: Applicative33.One example of a real-world market for tradable polluti on permits is the market for carb on permits in Europe.ANS: T DIF: 1 REF: 10-2NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Tradable pollution permits MSC: Applicativeer nment can be used to solve exter nality problems that are too costly for private parties to solve.ANS: T DIF: 1 REF: 10-3NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Exter nalities MSC: In terpretiveer nment in terve nti on is n ecessary to correct all exter nalities.ANS: F DIF: 2 REF: 10-3NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Exter nalities MSC: Applicative36.According to the Coase theorem, if private parties can bargain without cost, then the private market will solve the problem ofexter nalities.ANS: T DIF: 1 REF: 10-3NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Coase theorem MSC: Defi nitio nal37.Accord ing to the Coase theorem, the private market will n eed gover nment in terve nti on in order to reach an efficie ntoutcome.ANS: F DIF: 1 REF: 10-3NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Coase theorem MSC: Defi nitio nal38.Despite the appealing logic of the Coase theorem, private actors often fail to resolve on their own the problems caused by externalities.ANS: T DIF: 1 REF: 10-3NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Coase theorem MSC: Applicative39.Accord ing to the Coase Theore m, in dividuals can always work out a mutually ben eficial agreeme nt to solve the problems ofexter nalities eve n whe n high tra nsacti on costs are in volved.ANS: F DIF: 2 REF: 10-3NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Coase Theorem MSC: In terpretive40.According to the Coase theorem, whatever the initial distribution of rights, the interested parties can bargain to an efficie ntoutcome.ANS: T DIF: 1 REF: 10-3NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Coase theorem MSC: Defi nitio nal41.Private parties may choose not to solve an exter nality problem if the tran sacti on costs are large eno ugh.ANS: T DIF: 2 REF: 10-3NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Coase theorem MSC: In terpretive42.Many charities like the Sierra Club are established to deal with externalities.SHORT ANSWERi ng a supply and dema nd diagram, dem on strate how a n egative exter nality leads to market in efficie ncy.How might the government help to eliminate this inefficiency?When a n egative exter nality exists, the private cost (or supply curve) is less tha n the social cost. The market equilibrium quantity of Q 0 will be greater than the socially optimal quantity of Q 1. The government could help elimi nate this in efficie ncy by tax ing the product. In this example, the size of the per-u nit tax would be P 3 - P1 (or P2 - P o).DIF: 2 REF: 10-1 NAT: An alyticLOC: Markets, market failure, and exter nalities TOP: Negative exter nalitiesMSC: An alyticali ng a supply and dema nd diagram, dem on strate how a positive exter nality leads to market in efficie ncy. How might thegovernment help to eliminate this inefficiency?When a positive externality exists, the private value (or dema nd curve) is less tha n the social value. The market equilibrium qua ntity will be less tha n the socially optimal qua ntity. The gover nment could help elim in ate this in efficie ncy by subsidiz ing the product. In this example, the size of the per-u nit subsidy would be P 3 - P1.DIF: 2 REF: 10-1 NAT: An alyticLOC: Markets, market failure, and exter nalitiesTOP: Positive exter nalitiesMSC: An alytical3.Why are efficie ncy taxes preferred to regulatory policies as methods remedy exter nalities?ANS:Efficie ncy taxes allow markets to coord in ate optimal resource allocati on .In order for regulati ons to be efficie nt, the gover nment n eeds detailed in formati on about specific in dustries, in clud ing in formati on about the alter native tech no logies that those in dustries could adopt. Thus, taxes are likely to reduce polluti on at a lower cost to society.DIF: 2 REF: 10-2 NAT: An alyticLOC: Markets, market failure, and exter nalitiesTOP: Comma nd-a nd-c on trol policies | Corrective taxes MSC: Applicativee a graph to illustrate the quantity of pollution that would be emitted (a) after a corrective tax has been imposed and (b)after tradable pollution permits have been imposed. Could these two quantities ever be equivale nt?ANS:(a) (b)BYes, these two quantities could be equal. For example, P could be equal to the amount of the corrective tax.DIF: 2 REF: 10-2 NAT: An alyticLOC: Markets, market failure, and exter nalitiesTOP: Corrective taxes | Tradable pollution permits MSC: An alytical5.To produce hon ey, beekeepers place hives of bees in the fields of farmers. As bees gather n ectar, they poll in ate the crops inthe fields, which in creases the yields of these fields at no additi onal cost to the farmer. What might be a reas on able private soluti on to this extern ality, and how might the soluti on be reached?ANS:One solution would be to have one person own both the farm fields and the beehives, in which case the externality is in ter nalized. Ano ther soluti on would be to have the farmer and beekeeper en ter into a con tract so that they can coord in ate the n umber of bee hives and acres of crops to maintain an efficie nt outcome.DIF: 1 REF: 10-3 NAT: An alyticLOC: Markets, market failure, and exter nalities TOP: Exter nalitiesMSC: Applicative6.The Coase theorem suggests that efficie nt soluti ons to exter nalities can be determ ined through barga ining.Under what circumstances will private bargaining fail to produce a solution?ANS:Private parties may fail to bargain to an efficient solution under a variety of circumstances. First, the transaction costs of bargaining may be so high that one or both of the parties decides not to barga in. Second, the barga ining may not take place if one or bothof the parties believes that the agreeme nt cannot be en forced. Third, one or both of the parties may try to hold out for a better deal, in which case the bargaining process breaks down. Fourth, if there are a large n umber of parties tak ing part in the n egotiati ons, the costs of coord in ati on may be so great that the barga ining is not successful.SecOOMULTIPLE CHOICE1.In a market economy, gover nment in terve nti ona.will always improve market outcomes.b.reduces efficie ncy in the prese nee of exter nalities.c.may improve market outcomes in the prese nee of exter nalities.d.is n ecessary to con trol in dividual greed.ANS: C DIF: 1 REF: 10-0NAT: An alytic LOC: Markets, market failure, and exter nalities TOP: Exter nalities MSC: Applicative2.In the absence of externalities, the "invisible hand" leads a market to maximizea.producer profit from that market.b.total ben efit to society from that market.c.both equality and efficie ncy in that market.d.output of goods or services in that market.ANS: B DIF: 1 REF: 10-0NAT: An alytic LOC: Markets, market failure, and exter nalities TOP: Exter nalities MSC: Applicative3.The term market failure refers toa. a market that fails to allocate resources efficie ntly.b.an un successful advertis ing campaig n which reduces dema nd.c.ruthless competiti on among firms.d. a firm that is forced out of bus in ess because of losses.ANS: A DIF: 1 REF: 10-0NAT: An alytic TOP:Exter nalities LOC: Markets, market failure, and exter nalities MSC: Defin itio nal4. Market failure can be caused bya.too much competiti on.b.exter nalities.c.low con sumer dema nd.d.scarcity.ANS: B DIF: NAT: An alytic LOC: TOP: Exter nalities MSC: 1 REF: 10-0Markets, market failure, and exter nalities In terpretive5.An exter nality is an example ofa. a corrective tax.b. a tradable polluti on permit.c. a market failure.d.Both a and b are correct.ANS: C DIF: 1 REF: 10-0NAT: An alytic LOC: Markets, market failure, and exter nalities TOP: Exter nalities MSC: Applicative6.An exter nality is the impact ofa.society's decisi ons on the well-be ing of society.b. a pers on's acti ons on that pers on's well-be ing.c.one pers on's acti ons on the well-be ing of a bysta nder.d.society's decisi ons on the poorest pers on in the society.8. An exter nalitya.results in an equilibrium that does not maximize the total ben efits to society. b.causes dema nd to exceed supply. c.strengthens the role of the “ invisible hand ” in the marketplace. d. affects buyers but not sellers. ANS: A DIF:1 REF: 10-0 NAT: An alytic LOC:Markets, market failure, and exter nalities TOP:Exter nalities MSC:In terpretive 9. An exter nality isa.the costs that parties in cur in the process of agree ing and follow ing through on a barga in. b.the un compe nsated impact of one pers on's acti ons on the well-be ing of a bysta nder. c.the propositi on that private parties can barga in without cost over the allocati on of resources. d. a market equilibrium tax.ANS: B DIF:1 REF: 10-0 NAT: An alytic LOC:Markets, market failure, and exter nalities TOP:Exter nalities MSC: Defi ni tio nal 10. A cost imposed on some one who is n either the con sumer nor the producer is called aa.corrective tax. b.comma nd and con trol policy. c.positive exter nality. d. n egative exter nality.1 REF: 10-0 Markets, market failure, and exter nalities Defin iti onal11. An exter nality arises whe n a pers on en gages in an activity that in flue nces the well-be ing ofa.buyers in the market for that activity and yet n either pays nor receives any compe nsati on for that effect. b.sellers in the market for that activity and yet n either pays nor receives any compe nsati on for that effect. c.bysta nders in the market for that activity and yet n either pays nor receives any compe nsati on for that effect. d.Both (a) and (b) are correct. ANS:C DIF: 1 REF: 10-0 NAT:An alytic LOC: Markets, market failure, and exter nalities TOP:Exter nalities MSC: Defi ni tio nal 12. An exter nality exists whe nevera.the economy cannot ben efit from gover nment in terve nti on. b.markets are not able to reach equilibrium. c.a firm sells its product in a foreig n market. d. a pers on en gages in an activity that in flue nces the well-be ing of a bysta nder and yet n either pays nor receivespayme nt for that effect.DIF: 2 REF: 10-0 LOC: Markets, market failure, and exter nalities MSC: Defin itio nal 13. When externalities are present in a market, the well-being of market participantsa.and market bysta nders are both directly affected. b. and market bysta nders are both in directly affected.7. The impact of one pers on's acti ons on the well-be ing of a bysta nder is calleda.an econo mic dilemma. b.deadweight loss. c.a multi-party problem. d. an exter nality.ANS: D DIF:NAT: An alytic LOC:TOP: Exter nalitiesMSC: 1 REF: 10-0 Markets, market failure, and exter nalities Applicative ANS: D DIF:NAT: An alytic LOC: TOP: Exter nalities KEY:ANS: DNAT: An alytic TOP:Exter nalitiesc.is directly affected, and market bysta nders are in directly affected.d.is in directly affected, and market bysta nders are directly affected.ANS: C DIF: 2 REF: 10-0NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Exter nalities MSC: An alytical14.Dog own ers do not bear the full cost of the no ise their bark ing dogs create and often take too few precauti ons to prevent their dogs from bark ing. Local gover nments address this problem bya.making it illegal to "disturb the peace."b.hav ing a well-fu nded ani mal con trol departme nt.c.subsidiz ing local ani mal shelters.d.en couragi ng people to adopt cats.ANS: A DIF: 1 REF: 10-0NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Exter nalities MSC: Applicative15.Which of the followi ng stateme nts about a well-mai ntai ned yard best con veys the gen eral n ature of the externality?a. A well-ma intained yard con veys a positive exter nality because it in creases the home's market value.b. A well-mai ntai ned yard con veys a n egative exter nality because it in creases the property tax liability of theowner.c. A well-ma intained yard con veys a positive exter nality because it in creases the value of adjace nt properties inthe n eighborhood.d. A well-ma intained yard cannot provide any type of exter nality.ANS: C DIF: 2 REF: 10-0NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Exter nalities MSC: Applicative16.Since restored historic build ings con vey a positive exter nality, local gover nments may choose toa.regulate the demoliti on of them.b.provide tax breaks to own ers who restore them.c.in crease property taxes in historic areas.d.Both a and b are correct.ANS: D DIF: 2 REF: 10-0NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Exter nalities MSC: Applicative17.All externalitiesa.cause markets to fail to allocate resources efficie ntly.b.cause equilibrium prices to be too high.c.ben efit producers at the expe nse of con sumers.d.cause equilibrium prices to be too low.ANS: A DIF: 2 REF: 10-0NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Exter nalities MSC: Applicative18.Whe n exter nalities exist, buyers and sellersa.n eglect the exter nal effects of their acti ons, but the market equilibrium is still efficie nt.b.do not neglect the external effects of their actions, and the market equilibrium is efficient.c.n eglect the exter nal effects of their acti ons, and the market equilibrium is not efficie nt.d.do not neglect the external effects of their actions, and the market equilibrium is not efficient.19.Dioxin emission that results from the production of paper is a good example of a negative externality becausea.self-i nterested paper firms are gen erally un aware of en viro nmen tal regulati ons.b.there are fines for produc ing too much diox in.c.self- in terested paper producers will not con sider the full cost of the diox in polluti on they create.d.toxic emissi ons are the best example of an exter nality.ANS: C DIF: 2 REF: 10-0NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Exter nalities MSC: Applicative20.If a paper man ufacturer does not bear the en tire cost of the diox in it emits, it willa.emit a lower level of dioxin than is socially efficient.b.emit a higher level of dioxin than is socially efficient.c.emit an acceptable level of diox in.d.not emit any diox in in an attempt to avoid pay ing the en tire cost.ANS: B DIF: 2 REF: 10-0NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Exter nalities MSC: Applicative21.Which of the following is an example of an externality?a.cigarette smoke that permeates an en tire restaura ntb. a flu shot that preve nts a stude nt from tran smitt ing the virus to her roommatec. a beautiful flower garde n outside of the local post officed.All of the above are correct.ANS: D DIF: 2 REF: 10-0NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Exter nalities MSC: Applicative22.Which of the followi ng stateme nts is n ot correct?er nment policies may improve the market's allocati on of resources whe n n egative exter nalities are prese nt.er nment policies may improve the market's allocati on of resources whe n positive exter nalities are prese nt.c. A positive exter nality is an example of a market failure.d.Without gover nment in terve nti on, the market will tend to un dersupply products that produce n egative externalities.ANS: D DIF: 2 REF: 10-0NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Exter nalities MSC: In terpretive23.Which of the follow ing represe nts a way that a gover nment can help the private market to in ter nalize an externality?a.tax ing goods that have n egative exter nalitiesb.subsidiz ing goods that have positive exter nalitiesc.The gover nment cannot improve upon the outcomes of private markets.d.Both a and b are correct.ANS: D DIF: 2 REF: 10-0NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Exter nalities MSC: Applicative24.Which of the followi ng is n ot correct?a.Markets allocate scarce resources with the forces of supply and dema nd.b.The equilibrium of supply and dema nd is typically an efficie nt allocati on of resources.er nments can sometimes improve market outcomes.d.Exter nalities cannot be positive.25. A n egative externality arises whe n a pers on en gages in an activity that hasa.an adverse effect on a bysta nder who is not compe nsated by the pers on who causes the effect.b.an adverse effect on a bysta nder who is compe nsated by the pers on who causes the effect.c. a ben eficial effect on a bysta nder who pays the pers on who causes the effect.d. a ben eficial effect on a bysta nder who does not pay the pers on who causes the effect.ANS: A DIF: 1 REF: 10-0NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Negative exter nalities MSC: Defi nitio nal26. A positive externality arises when a person engages in an activity that hasa.an adverse effect on a bysta nder who is not compe nsated by the pers on who causes the effect.b.an adverse effect on a bysta nder who is compe nsated by the pers on who causes the effect.c. a ben eficial effect on a bysta nder who pays the pers on who causes the effect.d. a ben eficial effect on a bysta nder who does not pay the pers on who causes the effect.ANS: D DIF: 1 REF: 10-0NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Positive exter nalities MSC: Defi nitio nal27.When an externality is present, the market equilibrium isa.efficie nt, and the equilibrium maximizes the total ben efit to society as a whole.b.efficie nt, but the equilibrium does not maximize the total ben efit to society as a whole.c.in efficie nt, but the equilibrium maximizes the total ben efit to society as a whole.d.in efficie nt, and the equilibrium does not maximize the total ben efit to society as a whole. ANS: D DIF: 2 REF: 10-0NAT: An alytic LOC: Markets, market failure, and exter nalitiesTOP: Exter nalities MSC: In terpretiveSec01-Exter nalities and Market In efficie ncyMULTIPLE CHOICE1. If an exter nality is prese nt in a market, econo mic efficie ncy may be enhan ced bya.in creased competiti on.b.weake ning property rights.c.better in formed market participa nts.er nment in terve nti on.ANS: D DIF: 1 REF: 10-1NAT: An alytical LOC: Markets, market failure, and exter nalitiesTOP: Exter nalities MSC: Applicative2. Exter nalities tend to cause markets to bea. in efficie nt.b. un equal.c. unn ecessary.d. overwhelmed.ANS: A DIF: 1 REF: 10-1NAT: An alytical LOC: Markets, market failure, and exter nalitiesTOP: Exter nalities MSC: Applicative3.If a sawmill creates too much no ise for local reside nts,a.no ise restricti ons will force reside nts to move out of the area.b. a sense of social responsibility will cause owners of the mill to reduce noise levels.c.the gover nment can raise econo mic well-bei ng through no ise-c on trol regulati ons.d.the gover nment should avoid in terve ning because the market will allocate resources efficie ntly. ANS: C DIF: 2 REF: 10-1NAT: An alytical LOC: Markets, market failure, and exter nalitiesTOP: Exter nalities MSC: Applicative。

Chapter 5Elasticity and Its ApplicationTRUE/FALSE1. Elasticity measures how responsive quantity is to changes in price.ANS: T DIF: 1 REF: 5-0 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Definitional2. Measures of elasticity enhance our ability to study the magnitudes of changes.ANS: T DIF: 1 REF: 5-0 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Definitional3. The demand for bread is likely to be more elastic than the demand for solid-gold bread plates.ANS: F DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive4. In general, demand curves for necessities tend to be price elastic.ANS: F DIF: 1 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive5. In general, demand curves for luxuries tend to be price elastic.ANS: T DIF: 1 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive6. Necessities tend to have inelastic demands, whereas luxuries have elastic demands.ANS: T DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive7. Goods with close substitutes tend to have more elastic demands than do goods without close substitutes. ANS: T DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive8. The demand for Rice Krispies is more elastic than the demand for cereal in general.ANS: T DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive9. The demand for soap is more elastic than the demand for Dove soap.ANS: F DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive10. The demand for gasoline will respond more to a change in price over a period of five weeks than over a periodof five years.ANS: F DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive11. Even the demand for a necessity such as gasoline will respond to a change in price, especially over a longertime horizon.ANS: T DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive12. The price elasticity of demand is defined as the percentage change in quantity demanded divided by thepercentage change in price.ANS: T DIF: 1 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Definitional13. The price elasticity of demand is defined as the percentage change in price divided by the percentage changein quantity demanded.ANS: F DIF: 1 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Definitional288Chapter 5 /Elasticity and Its Application ❖289 14. Suppose that when the price rises by 20% for a particular good, the quantity demanded of that good falls by10%. The price elasticity of demand for this good is equal to 2.0.ANS: F DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Analytical15. Suppose that when the price rises by 10% for a particular good, the quantity demanded of that good falls by20%. The price elasticity of demand for this good is equal to 2.0.ANS: T DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Analytical16. If the price of calculators increases by 15 percent and the quantity demanded per week falls by 45 percent as aresult, then the price elasticity of demand is 3.ANS: T DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Applicative17. Demand is inelastic if the price elasticity of demand is greater than 1.ANS: F DIF: 1 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Inelastic demand MSC: Definitional18. A linear, downward-sloping demand curve has a constant elasticity but a changing slope.ANS: F DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive19. Price elasticity of demand along a linear, downward-sloping demand curve increases as price falls.ANS: F DIF: 3 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive20. If the price elasticity of demand is equal to 0, then demand is unit elastic.ANS: F DIF: 1 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Definitional21. If the price elasticity of demand is equal to 1, then demand is unit elastic.ANS: T DIF: 1 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Definitional22. Demand for a good is said to be inelastic if the quantity demanded increases substantially when the price fallsby a small amount.ANS: F DIF: 1 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Inelastic demand MSC: Definitional23. The midpoint method is used to calculate elasticity between two points because it gives the same answerregardless of the direction of the change.ANS: T DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Midpoint method MSC: Interpretive24. The flatter the demand curve that passes through a given point, the more inelastic the demand.ANS: F DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive25. The flatter the demand curve that passes through a given point, the more elastic the demand.ANS: T DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive26. If demand is perfectly inelastic, the demand curve is vertical, and the price elasticity of demand equals 0. ANS: T DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Perfectly inelastic demand MSC: Interpretive27. If demand is perfectly elastic, the demand curve is horizontal, and the price elasticity of demand equals 1. ANS: F DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Perfectly elastic demand MSC: Interpretive290 ❖Chapter 5 /Elasticity and Its Application28. Along the elastic portion of a linear demand curve, total revenue rises as price rises.ANS: F DIF: 3 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Total revenue | Price elasticity of demandMSC: Interpretive29. If a firm is facing elastic demand, then the firm should decrease price to increase revenue.ANS: T DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Total revenue | Price elasticity of demandMSC: Applicative30. If a firm is facing inelastic demand, then the firm should decrease price to increase revenue.ANS: F DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Total revenue | Price elasticity of demandMSC: Applicative31. When demand is inelastic, a decrease in price increases total revenue.ANS: F DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Inelastic demand | Total revenue MSC: Interpretive32. The income elasticity of demand is defined as the percentage change in quantity demanded divided by thepercentage change in income.ANS: T DIF: 1 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Income elasticity of demand MSC: Definitional33. The income elasticity of demand is defined as the percentage change in quantity demanded divided by thepercentage change in price.ANS: F DIF: 1 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Income elasticity of demand MSC: Definitional34. Normal goods have negative income elasticities of demand, while inferior goods have positive incomeelasticities of demand.ANS: F DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Income elasticity of demand MSC: Interpretive35. If the income elasticity of demand for a good is negative, then the good must be an inferior good.ANS: T DIF: 1 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Income elasticity of demand MSC: Interpretive36. If the cross-price elasticity of demand for two goods is negative, then the two goods are substitutes. ANS: F DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Cross-price elasticity of demand MSC: Interpretive37. If the cross-price elasticity of demand for two goods is negative, then the two goods are complements. ANS: T DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Cross-price elasticity of demand MSC: Interpretive38. Cross-price elasticity of demand measures how the quantity demanded of one good changes as the price ofanother good changes.ANS: T DIF: 1 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Cross-price elasticity of demand MSC: Definitional39. Cross-price elasticity is used to determine whether goods are inferior or normal goods.ANS: F DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Cross-price elasticity of demand MSC: Interpretive40. Cross-price elasticity is used to determine whether goods are substitutes or complements.ANS: T DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Cross-price elasticity of demand MSC: InterpretiveChapter 5 /Elasticity and Its Application ❖291 41. The cross-price elasticity of garlic salt and onion salt is -2, which indicates that garlic salt and onion salt aresubstitutes.ANS: F DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Cross-price elasticity of demand MSC: Interpretive42. Price elasticity of supply measures how much the quantity supplied responds to changes in the price.ANS: T DIF: 1 REF: 5-2 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of supply MSC: Definitional43. Supply and demand both tend to be more elastic in the long run and more inelastic in the short run.ANS: T DIF: 2 REF: 5-1 | 5-2 NAT: AnalyticLOC: Elasticity TOP: Price elasticities of demand and supplyMSC: Interpretive44. If the price elasticity of supply is 2 and the quantity supplied decreases by 6%, then the price must havedecreased by 3%.ANS: T DIF: 2 REF: 5-2 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of supply MSC: Applicative45. Supply is said to be inelastic if the quantity supplied responds substantially to changes in the price, and elasticif the quantity supplied responds only slightly to price.ANS: F DIF: 1 REF: 5-2 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of supply MSC: Definitional46. Supply tends to be more elastic in the short run and more inelastic in the long run.ANS: F DIF: 2 REF: 5-2 NAT: AnalyticTOP: Price elasticity of supply MSC: Interpretive47. When the price of knee braces increased by 25 percent, the Brace Yourself Company increased its quantitysupplied of knee braces per week by 75 percent. BYC's price elasticity of supply of knee braces is 0.33. ANS: F DIF: 2 REF: 5-2 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of supply MSC: Applicative48. If a supply curve is horizontal, then supply is said to be perfectly elastic, and the price elasticity of supplyapproaches infinity.ANS: T DIF: 2 REF: 5-2 NAT: AnalyticLOC: Elasticity TOP: Perfectly elastic supply MSC: Interpretive49. A government program that reduces land under cultivation hurts farmers but helps consumers.ANS: F DIF: 2 REF: 5-3 NAT: AnalyticLOC: Elasticity TOP: Total revenue MSC: Applicative50. OPEC failed to maintain a high price of oil in the long run, partly because both the supply of oil and thedemand for oil are more elastic in the long run than in the short run.ANS: T DIF: 2 REF: 5-3 NAT: AnalyticLOC: Elasticity TOP: OPEC | Price elasticity of demand | Price elasticity of supplyMSC: Applicative51. Drug interdiction, which reduces the supply of drugs, may decrease drug-related crime because the demand fordrugs is inelastic.ANS: F DIF: 2 REF: 5-3 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand MSC: Applicative292 ❖Chapter 5 /Elasticity and Its ApplicationSHORT ANSWER1. Consider the following pairs of goods. For which of the two goods would you expect the demand to be moreprice 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 computersANS:a.Diamonds are luxuries, and water is a necessity. Therefore, diamonds have the more elastic demand.b.Insulin has no close substitutes, but decongestant spray does. Therefore, nasal decongestant spray has themore elastic demand.c.Breakfast cereal has more substitutes than does food in general. Therefore, breakfast cereal has the moreelastic demand.d.The longer the time period, the more elastic demand is. Therefore, gasoline over the course of a year hasthe more elastic demand.e.There are more substitutes for IBM personal computers than there are for personal computers. Therefore,IBM personal computers have the more elastic demand.DIF: 2 REF: 5-1 NAT: Analytic LOC: ElasticityTOP: Price elasticity of demand MSC: ApplicativeChapter 5 /Elasticity and Its Application ❖ 2932. You own a small town movie theatre. You currently charge $5 per ticket for everyone who comes to yourmovies. Your friend who took an economics course in college tells you that there may be a way to increase1020304050607080901001234567891051015202530354045505560657012345678910a.What is your current total revenue for both groups? b.The elasticity of demand is more elastic in which market? c.Which market has the more inelastic demand? d.What is the elasticity of demand between the prices of $5 and $2 in the adult market? Is this elastic or inelastic? e.What is the elasticity of demand between $5 and $2 in the children's market? Is this elastic or inelastic?f. Given the graphs and what your friend knows about economics, he recommends you increase theprice of adult tickets to $8 each and lower the price of a child's ticket to $3. How much could youincrease total revenue if you take his advice? ANS:a. Total revenue from children's tickets is $100 and from adult tickets is $250. Total revenue from allsales would be $350.b. The demand for children's tickets is more elastic.c. The adult ticket market has the more inelastic demand.d. The elasticity of demand between $5 and $2 is 0.26, which is inelastic.e. The elasticity of demand between $5 and $2 is 1.0, which is unit elastic.f. Total revenue in the adult market would be $320. Total revenue in the children’s market wouldbe $120, so total revenue for both groups would be $440. $440 - $350 is an increase in totalrevenue of $90.DIF: 2 REF: 5-1 NAT: AnalyticLOC: Elasticity TOP: Price elasticity of demand | Total revenue MSC: Applicative294 ❖Chapter 5 /Elasticity and Its Application3. 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 fall would befrom _________.e.The portion of the graph in which a decrease in price would cause total revenue to rise would befrom _________.f.The portion of the graph in which a decrease in price would not cause a change in total revenuewould 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 _______.ANS:a. A to Bb. B to Cc.Bd. B to Ce. A to Bf.Bg.Bh. A to Bi.Bj. B to CDIF: 2 REF: 5-1 NAT: Analytic LOC: ElasticityTOP: Price elasticity of demand | Total revenue MSC: ApplicativeChapter 5 /Elasticity and Its Application ❖ 2954. Using the midpoint method, compute the elasticity of demand between points A and B. Is demand along thisportion of the curve elastic or inelastic? Interpret your answer with regard to price and quantity demanded. Now compute the elasticity of demand between points B and C. Is demand along this portion of the curve elastic or inelastic?100200300400500600700800900246810121416182022ANS:In the section of the demand curve from A to B, the elasticity of demand would be 2.5. This would be an elastic portion of the curve. This would mean that for every 1 percent change in price, quantity demanded would change by2.5 percent.In the section of the demand curve from B to C, the elasticity of demand would be .75. This would be an inelastic portion of the curve. This would mean that for every 1 percent change in price, quantity demanded would change by 0.75 percent.DIF: 2 REF: 5-1NAT: Analytic LOC: Elasticity TOP: Price elasticity of demandMSC: Applicative 5. When the Shaffers had a monthly income of $4,000, they usually ate out 8 times a month. Now that the couplemakes $4,500 a month, they eat out 10 times a month. Compute the couple's income elasticity of demand using the midpoint method. Explain your answer. (Is a restaurant meal a normal or inferior good to thecouple?)ANS:The income elasticity of demand for the Shaffers is 1.89. Since the income elasticity of demand is positive, eating out would be interpreted as a normal good.DIF: 2 REF: 5-1NAT: Analytic LOC: Elasticity TOP: Income elasticity of demandMSC: Applicative 6. Recently, in Smalltown, the price of Twinkies fell from $0.80 to $0.70. As a result, the quantity demanded ofHo-Ho's decreased from 120 to 100. What would be the appropriate elasticity to compute? Using the midpoint method, compute this elasticity. What does your answer tell you?ANS:The appropriate elasticity to compute would be cross-price elasticity. The cross-price elasticity for this example would be 1.36. The two goods are substitutes because the cross-price elasticity is positive.DIF: 2 REF: 5-1NAT: Analytic LOC: ElasticityTOP: Cross-price elasticity of demand MSC: Applicative296 ❖Chapter 5 /Elasticity and Its ApplicationSec00 - Elasticity and Its ApplicationMULTIPLE CHOICE1. In general, elasticity is a measure ofa.the extent to which advances in technology are adopted by producers.b.the extent to which a market is competitive.c.how firms’ profits respond to changes in market prices.d.how much buyers and sellers respond to changes in market conditions.ANS: D DIF: 1 REF: 5-0NAT: Analytic LOC: Elasticity TOP: Elasticity MSC: Definitional2. Elasticity isa. a measure of how much buyers and sellers respond to changes in market conditions.b.the study of how the allocation of resources affects economic well-being.c.the maximum amount that a buyer will pay for a good.d.the value of everything a seller must give up to produce a good.ANS: A DIF: 1 REF: 5-0NAT: Analytic LOC: Elasticity TOP: Elasticity MSC: Definitional3. When studying how some event or policy affects a market, elasticity provides information on thea.equity effects on the market by identifying the winners and losers.b.magnitude of the effect on the market.c.speed of adjustment of the market in response to the event or policy.d.number of market participants who are directly affected by the event or policy.ANS: B DIF: 2 REF: 5-0NAT: Analytic LOC: Elasticity TOP: Elasticity MSC: Interpretive4. How does the concept of elasticity allow us to improve upon our understanding of supply and demand?a.Elasticity allows us to analyze supply and demand with greater precision than would be the case inthe absence of the elasticity concept.b.Elasticity provides us with a better rationale for statements such as “an increase in x will lead to adecrease in y” than we would have in the absence of the elasticity concept.c.Without elasticity, we would not be able to address the direction in which price is likely to move inresponse to a surplus or a shortage.d.Without elasticity, it is very difficult to assess the degree of competition within a market.ANS: A DIF: 2 REF: 5-0NAT: Analytic LOC: Elasticity TOP: Elasticity MSC: Interpretive5. 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 in the longrun.ANS: A DIF: 2 REF: 5-0NAT: Analytic LOC: Elasticity TOP: Elasticity MSC: Applicative6. A 10 percent increase in gasoline prices reduces gasoline consumption by abouta. 6 percent after one year and 2.5 percent after five years.b. 2.5 percent after one year and 6 percent after five years.c.10 percent after one year and 20 percent after five years.d.0 percent after one year and 1 percent after five years.ANS: B DIF: 2 REF: 5-0NAT: Analytic LOC: Elasticity TOP: Elasticity MSC: ApplicativeChapter 5 /Elasticity and Its Application ❖2977. Which of the following statements about the consumers’ responses to rising gasoline prices is correct?a.About 10 percent of the long-run reduction in quantity demanded arises because people drive lessand about 90 percent arises because they switch to more fuel-efficient cars.b.About 90 percent of the long-run reduction in quantity demanded arises because people drive lessand about 10 percent arises because they switch to more fuel-efficient cars.c.About half of the long-run reduction in quantity demanded arises because people drive less andabout half arises because they switch to more fuel-efficient cars.d.Because gasoline is a necessity, consumers do not decrease their quantity demanded in either theshort run or the long run.ANS: C DIF: 2 REF: 5-0NAT: Analytic LOC: Elasticity TOP: Elasticity MSC: ApplicativeSec01 - Elasticity and Its Application - The Elasticity of DemandMULTIPLE CHOICE1. The price elasticity of demand measures how mucha.quantity demanded responds to a change in price.b.quantity demanded responds to a change in income.c.price responds to a change in demand.d.demand responds to a change in supply.ANS: A DIF: 1 REF: 5-1NAT: Analytic LOC: Elasticity TOP: Price elasticity of demandMSC: Definitional2. The price elasticity of demand measuresa.buyers’ responsiveness to a change in the price of a good.b.the extent to which demand increases as additional buyers enter the market.c.how much more of a good consumers will demand when incomes rise.d.the movement along a supply curve when there is a change in demand.ANS: A DIF: 1 REF: 5-1NAT: Analytic LOC: Elasticity TOP: Price elasticity of demandMSC: Definitional3. The price elasticity of demand for a good measures the willingness ofa.consumers to buy less of the good as price rises.b.consumers to avoid monopolistic markets in favor of competitive markets.c.firms to produce more of a good as price rises.d.firms to cater to the tastes of consumers.ANS: A DIF: 1 REF: 5-1NAT: Analytic LOC: Elasticity TOP: Price elasticity of demandMSC: Interpretive4. 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 good to buyless of the good as its price increases.b.Price elasticity of demand reflects the many economic, psychological, and social forces that shapeconsumer tastes.c.Other things equal, if good x has close substitutes and good y does not have close substitutes, thenthe demand for good x will be more elastic than the demand for good y.d.All of the above are correct.ANS: D DIF: 2 REF: 5-1NAT: Analytic LOC: Elasticity TOP: Price elasticity of demandMSC: Interpretive5. For a good that is a necessity,a.quantity demanded tends to respond substantially to a change in price.b.demand tends to be inelastic.c.the law of demand does not apply.d.All of the above are correct.ANS: B DIF: 2 REF: 5-1NAT: Analytic LOC: Elasticity TOP: Price elasticity of demandMSC: Interpretive6. Goods with many close substitutes tend to havea.more elastic demands.b.less elastic demands.c.price elasticities of demand that are unit elastic.d.income elasticities of demand that are negative.ANS: A DIF: 2 REF: 5-1NAT: Analytic LOC: Elasticity TOP: Price elasticity of demandMSC: Interpretive7. Which of the following is likely to have the most price inelastic demand?a.mint-flavored toothpasteb.toothpastec.Colgate mint-flavored toothpasted. a generic mint-flavored toothpasteANS: B DIF: 2 REF: 5-1NAT: Analytic LOC: Elasticity TOP: Price elasticity of demandMSC: Applicative8. Which of the following is likely to have the most price inelastic demand?a.white chocolate chip with macadamia nut cookiesb.Mrs. Field’s chocolate chip cookiesk chocolate chip cookiesd.cookiesANS: D DIF: 2 REF: 5-1NAT: Analytic LOC: Elasticity TOP: Price elasticity of demandMSC: Applicative9. 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 increaseANS: D DIF: 2 REF: 5-1NAT: Analytic LOC: Elasticity TOP: Price elasticity of demandMSC: Applicative10. If the price of milk rises, when is the price elasticity of demand likely to be the lowest?a.immediately after the price increaseb.one month after the price increasec.three months after the price increased.one year after the price increaseANS: A DIF: 2 REF: 5-1NAT: Analytic LOC: Elasticity TOP: Price elasticity of demandMSC: Applicative11. For a good that is a luxury, 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.ANS: B DIF: 2 REF: 5-1NAT: Analytic LOC: Elasticity TOP: Price elasticity of demandMSC: Interpretive12. 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.ANS: A DIF: 2 REF: 5-1NAT: Analytic LOC: Elasticity TOP: Price elasticity of demandMSC: Interpretive13. A person who takes a prescription drug to control high cholesterol most likely has a demand for that drug thatisa.inelastic.b.unit elastic.c.elastic.d.highly responsive to changes in income.ANS: A DIF: 2 REF: 5-1NAT: Analytic LOC: Elasticity TOP: Price elasticity of demandMSC: Interpretive14. The demand for Neapolitan ice cream is likely quite elastic becausea.ice cream must be eaten quickly.b.this particular flavor of ice cream is viewed as a necessity by many ice-cream lovers.c.the market is broadly defined.d.other flavors of ice cream are good substitutes for this particular flavor.ANS: D DIF: 2 REF: 5-1NAT: Analytic LOC: Elasticity TOP: Price elasticity of demandMSC: Interpretive15. The demand for Werthers candy is likelya.elastic because candy is expensive relative to other snacks.b.elastic because there are many close substitutes for Werthers.c.elastic because Werthers are regarded as a necessity by many people.d.inelastic because it is usually eaten quickly, making the relevant time horizon short.ANS: B DIF: 2 REF: 5-1NAT: Analytic LOC: Elasticity TOP: Price elasticity of demandMSC: Interpretive16. There are very few, if any, good substitutes for motor oil. Therefore,a.the demand for motor oil would tend to be inelastic.b.the demand for motor oil would tend to be elastic.c.the demand for motor oil would tend to respond strongly to changes in prices of other goods.d.the supply of motor oil would tend to respon d strongly to changes in people’s tastes for large carsrelative to their tastes for small cars.ANS: A DIF: 2 REF: 5-1NAT: Analytic LOC: Elasticity TOP: Price elasticity of demandMSC: Interpretive。

曼昆《经济学原理》(微观)第五版测试题库(05)Chapter 5 Elasticity and Its Application TRUE/FALSE 1. Elasticity measures how responsive quantity is to changes in : T DIF: 1 REF: 5-0 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Definitional 2. Measures of elasticity enhance our ability to study the magnitudes of : T DIF: 1 REF: 5-0 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Definitional 3. The demand for bread is likely to be more elastic than the demand for solid-gold bread : F DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive 4. In general, demand curves for necessities tend to be price : F DIF: 1 REF:5-1 LOC: Elasticity TOP: Price elasticity of demand 5. In general, demand curves for luxuries tend to be price : T DIF: 1 REF: 5-1 LOC: Elasticity TOP: Price elasticity of demand NAT: Analytic MSC: InterpretiveNAT: Analytic MSC: Interpretive 6. Necessities tend to have inelastic demands, whereas luxuries have elastic : T DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive7. Goods with close substitutes tend to have more elastic demands than do goods without close : T DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive8. The demand for Rice Krispies is more elastic than the demand for cereal in : T DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive9. The demand for soap is more elastic than the demand for Dove : FDIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive10. The demand for gasoline will respond more to a change in price over a period of five weeks than over a period of five : F DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive 11. Even the demand for a necessity such as gasoline will respond to a change in price, especially over a longer time : T DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive12. The price elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in : T DIF: 1 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Definitional13. The price elasticity of demand is defined as the percentage change in price divided by thepercentage change in quantity : F DIF: 1 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Definitional288 Chapter 5 /Elasticity and Its Application ? 289 14. Suppose that when the price rises by 20% for a particular good, the quantity demanded of that good falls by 10%. The price elasticity of demand for this good is equal to : F DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Analytical 15. Suppose that when the price rises by 10% for a particular good, the quantity demanded of that good falls by 20%. The price elasticity of demand for this good is equal to : T DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Analytical 16. If the price of calculators increases by 15 percent and the quantity demanded per week falls by 45 percent as a result,then the price elasticity of demand is : T DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Applicative17. Demand is inelastic if the price elasticity of demand is greater than : F DIF: 1 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Inelastic demand MSC: Definitional18. A linear, downward-sloping demand curve has a constant elasticity but a changing : F DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive19. Price elasticity of demand along a linear, downward-sloping demand curve increases as price : F DIF: 3 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive 20. If the price elasticity of demand is equal to 0, then demand is unit : F DIF: 1 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC:Definitional21. If the price elasticity of demand is equal to 1, then demand is unit : T DIF: 1 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Definitional22. Demand for a good is said to be inelastic if the quantity demanded increases substantially when the price falls by a small : F DIF: 1 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Inelastic demand MSC: Definitional23. The midpoint method is used to calculate elasticity between two points because it gives the same answer regardless of the direction of the : T DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Midpoint method MSC: Interpretive24. The flatter the demand curve that passes through a given point, the more inelastic the : F DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive25. Theflatter the demand curve that passes through a given point, the more elastic the : T DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive26. If demand is perfectly inelastic, the demand curve is vertical, and the price elasticity of demand equals : T DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Perfectly inelastic demand MSC: Interpretive27. If demand is perfectly elastic, the demand curve is horizontal, and the price elasticity of demand equals : F DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Perfectly elastic demand MSC: Interpretive290 ? Chapter 5 /Elasticity and Its Application 28. Along the elastic portion of a linear demand curve, total revenue rises as price : F DIF: 3 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Total revenue | Price elasticity of demand MSC: Interpretive29. If a firm is facing elastic demand, then the firm should decrease price to increase : T DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Total revenue | Price elasticity of demand MSC: Applicative 30. If a firm is facing inelastic demand, then the firm should decrease price to increase : F DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Total revenue | Price elasticity of demand MSC: Applicative31. When demand is inelastic, a decrease in price increases total : F DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Inelastic demand | Total revenue MSC: Interpretive32. The income elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in : T DIF: 1 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Income elasticity of demand MSC: Definitional 33. The income elasticity of demand isdefined as the percentage change in quantity demanded divided by the percentage change in : F DIF: 1 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Income elasticity of demand MSC: Definitional34. Normal goods have negative income elasticities of demand, while inferior goods have positive income elasticities of : F DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Income elasticity of demand MSC: Interpretive 35. If the income elasticity of demand for a good is negative, then the good must be an inferior : T DIF: 1 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Income elasticity of demand MSC: Interpretive36. If the cross-price elasticity of demand for two goods is negative, then the two goods are : F DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Cross-price elasticity of demand MSC: Interpretive37. If the cross-price elasticity of demand for twogoods is negative, then the two goods are : T DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Cross-price elasticity of demand MSC: Interpretive38. Cross-price elasticity of demand measures how the quantity demanded of one good changes as the price of another good : T DIF: 1 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Cross-price elasticity of demand MSC: Definitional39. Cross-price elasticity is used to determine whether goods are inferior or normal : F DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Cross-price elasticity of demand MSC: Interpretive40. Cross-price elasticity is used to determine whether goods are substitutes or : T DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Cross-price elasticity of demand MSC: Interpretive Chapter 5 /Elasticity and Its Application ? 291 41. The cross-price elasticity of garlic saltand onion salt is -2, which indicates that garlic salt and onion salt are : F DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Cross-price elasticity of demand MSC: Interpretive42. Price elasticity of supply measures how much the quantity supplied responds to changes in the : T DIF: 1 REF: 5-2 NAT: Analytic LOC: Elasticity TOP: Price elasticity of supply MSC: Definitional43. Supply and demand both tend to be more elastic in the long run and more inelastic in the short : T DIF: 2 REF: 5-1 | 5-2 NAT: Analytic LOC: Elasticity TOP: Price elasticities of demand and supply MSC: Interpretive 44. If the price elasticity of supply is 2 and the quantity supplied decreases by 6%, then the price must have decreased by 3%.ANS: T DIF: 2 REF: 5-2 NAT: Analytic LOC: Elasticity TOP: Price elasticity of supply MSC: Applicative 45. Supply is said to be inelastic if thequantity supplied responds substantially to changes in the price, and elastic if the quantity supplied responds only slightly to : F DIF: 1 REF: 5-2 NAT: Analytic LOC: Elasticity TOP: Price elasticity of supply MSC: Definitional46. Supply tends to be more elastic in the short run and more inelastic in the long : F DIF: 2 REF: 5-2 NAT: Analytic TOP: Price elasticity of supply MSC: Interpretive47. When the price of knee braces increased by 25 percent, the Brace Yourself Company increased its quantity supplied of knee braces per week by 75 percent. BYC’s price elasticity of supply of knee braces is : F DIF: 2 REF: 5-2 NAT: Analytic LOC: Elasticity TOP: Price elasticity of supply MSC: Applicative 48. If a supply curve is horizontal, then supply is said to be perfectly elastic, and the price elasticity of supply approaches : T DIF: 2 REF: 5-2 NAT:Analytic LOC: Elasticity TOP: Perfectly elastic supply MSC: Interpretive49. A government program that reduces land under cultivation hurts farmers but helps : F DIF: 2 REF: 5-3 NAT: Analytic LOC: Elasticity TOP: Total revenue MSC: Applicative50. OPEC failed to maintain a high price of oil in the long run, partly because both the supply of oil and the demand for oil are more elastic in the long run than in the short : T DIF: 2 REF: 5-3 NAT: Analytic LOC: Elasticity TOP: OPEC | Price elasticity of demand | Price elasticity of supply MSC: Applicative51. Drug interdiction, which reduces the supply of drugs, may decrease drug-related crime because the demand for drugs is : F DIF: 2 REF: 5-3 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Applicative292 ? Chapter 5 /Elasticity and Its ApplicationSHORT ANSWER1. Consider the following pairs of goods. For which of the two goods would you expect the demand to be more price elastic? Why? a. water or diamonds b. insulin or nasal decongestant spray c. food in general or breakfast cereal d. gasoline over the course of a week or gasoline over the course of a year e. personal computers or IBM personal computers ANS: a. Diamonds are luxuries, and water is a necessity. Therefore, diamonds have the more elastic demand. b. Insulin has no close substitutes, but decongestant spray does. Therefore, nasal decongestant spray has the more elastic demand. c. Breakfast cereal has more substitutes than does food in general. Therefore, breakfast cereal has the more elastic demand.d. The longer the time period, the more elastic demand is. Therefore, gasoline over the course of a year has the moreelastic demand. e. There are more substitutes for IBM personal computers than there are for personal computers. Therefore, IBM personal computers have the more elastic demand. DIF: 2 REF: 5-1 TOP: Price elasticity of demand NAT: Analytic MSC: Applicative LOC: ElasticityChapter 5 /Elasticity and Its Application ? 293 2. You own a small town movie theatre. You currently charge $5 per ticket for everyone who comes to your movies. Your friend who took an economics course in college tells you that there may be a way to increase your total revenue. Given the demand curves shown, answer the following questions. 10987654321102030405060708090100Qu antityPriceAdult Demand 10987654321510152025303540455055606570QuantityPriceChild Demanda. b. c. d.e. f. What is your current total revenue for both groups? The elasticity of demand is more elastic in which market? Which market has the more inelastic demand? What is the elasticity of demand between the prices of $5 and $2 in the adult market? Is this elastic or inelastic? What is the elasticity of demand between $5 and $2 in the children’s market? Is this elastic or inelastic? Given the graphs and what your friend knows about economics, he recommends you increase the price of adult tickets to $8 each and lower the price of a child’s ticket to $3. How much could you increase total revenue if you take his advice? ANS: a. Total revenue from children’s tickets is $100 and from adult tickets is $250. Total revenue from all sales would be $350. b. The demand for children’s tickets is moreelastic. c. The adult ticket market has the more inelastic demand. d. The elasticity of demand between $5 and $2 is , which is inelastic. e. The elasticity of demand between $5 and $2 is , which is unit elastic. f. Total revenue in the adult market would be $320. Total revenue in the children’s market would be $120, so total revenue for both groups would be $440. $440 - $350 is an increase in total revenue of $90. DIF: 2 REF: 5-1 NAT: Analytic TOP: Price elasticity of demand | Total revenue LOC: Elasticity MSC: Applicative 294 ? Chapter 5 /Elasticity and Its Application 3. Use the graph shown to answer the following questions. Put the correct letter(s) in the blank. APriceBDemandCQuantity a.b. c. d. The elastic section of the graph is represented by section from _______. The inelastic section of the graphis represented by section from _______. The unit elastic section of the graph is represented by section _______. The portion of the graph in which a decrease in price would cause total revenue to fall would be from _________. e. The portion of the graph in which a decrease in price would cause total revenue to rise would be from _________. f. The portion of the graph in which a decrease in price would not cause a change in total revenue 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 _______.A toB B toC B B to C A to B B B A to BB B toC LOC: Elasticity MSC:Applicative ANS: a. b. c. d. e. f.g. h. i. j. DIF: 2 REF: 5-1 NAT: Analytic TOP: Price elasticity of demand | Total revenue Chapter 5 /Elasticity and Its Application ? 295 4. Using the midpoint method, compute the elasticity of demand between points A and B. Is demand along this portion of the curve elastic or inelastic? Interpret your answer with regard to price and quantity demanded. Now compute the elasticity of demand between points B and C. Is demand along this portion of the curve elastic or inelastic? Price222018161412108642CBADemand1 00200300400500600700800900QuantityA NS: In the section of the demand curve from A to B, the elasticity of demand would be This would be an elastic portion of the curve. This would mean that for every 1 percent change in price, quantity demanded would change bypercent. In the section of the demand curve from B to C, the elasticity of demand would be .75. This would be an inelastic portion of the curve. This would mean that for every 1 percent change in price, quantity demanded would change by percent.DIF: 2 REF: 5-1 TOP: Price elasticity of demand 5. NAT: Analytic MSC: Applicative LOC: Elasticity When the Shaffers had a monthly income of $4,000, they usually ate out 8 times a month. Now that the couple makes $4,500 a month, they eat out 10 times a month. Compute the couple’s income elasticity of demand using the midpoint method. Explain your answer. (Is a restaurant meal a normal or inferior good to the couple?)ANS: The income elasticity of demand for the Shaffers is Since the income elasticity of demand is positive, eating out would be interpreted as a normal good.DIF: 2 REF: 5-1 TOP:Income elasticity of demand 6. NAT: Analytic MSC: Applicative LOC: Elasticity Recently, in Smalltown, the price of Twinkies fell from $ to $ As a result, the quantity demanded of Ho-Ho’s decreased from 120 to 100. What would be the appropriate elasticity to compute? Using the midpoint method, compute this elasticity. What does your answer tell you?ANS: The appropriate elasticity to compute would be cross-price elasticity. The cross-price elasticity for this example would be The two goods are substitutes because the cross-price elasticity is positive.DIF: 2 REF: 5-1 TOP: Cross-price elasticity of demand NAT: Analytic MSC: Applicative LOC: Elasticity 296 ? Chapter 5 /Elasticity and Its Application Sec00 - Elasticity and Its Application MULTIPLE CHOICE1. In general, elasticity is a measure of a. the extentto which advances in technology are adopted by producers. b. the extent to which a market is competitive. c. how firms’profits respond to changes in market prices. d. how much buyers and sellers respond to changes in market conditions. DIF: 1 LOC: Elasticity REF: 5-0 TOP: Elasticity MSC: Definitional ANS: D NAT: Analytic 2. Elasticity is a. a measure of how much buyers and sellers respond to changes in market conditions. b. the study of how the allocation of resources affects economic well-being. c. the maximum amount that a buyer will pay for a good.d. the value of everything a seller must give up to produce a good. DIF: 1 LOC: Elasticity REF: 5-0 TOP: Elasticity MSC: Definitional ANS: A NAT: Analytic 3. When studying how some event or policyaffects a market, elasticity provides information on the a. equity effects on the market by identifying the winners and losers. b. magnitude of the effect on the market. c. speed of adjustment of the market in response to the event or policy.d. number of market participants who are directly affected by the event or policy. DIF: 2 LOC: Elasticity REF: 5-0 TOP: Elasticity MSC: Interpretive ANS: B NAT: Analytic 4. How does the concept of elasticity allow us to improve upon our understanding of supply and demand? a. Elasticity allows us to analyze supply and demand with greater precision than would be the case in the absence of the elasticity concept. b. Elasticity provides us with a better rationale for statements such as “an increase in x will lead to a decrease in y” than we would have in the absence of the elasticityconcept. c. Without elasticity, we would not be able to address the direction in which price is likely to move in response to a surplus or a shortage. d. Without elasticity, it is very difficult to assess the degree of competition within a market. DIF: 2 LOC: Elasticity REF: 5-0 TOP: Elasticity MSC: Interpretive ANS: A NAT: Analytic 5. When consumers face rising gasoline prices, they typically a. 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 in the long run. DIF: 2 LOC: Elasticity REF: 5-0 TOP: Elasticity MSC: Applicative ANS: A NAT:Analytic 6. A 10 percent increase in gasoline prices reduces gasoline consumption by about a. 6 percent after one year and percent after five years. b. percent after one year and 6 percent after five years. c. 10 percent after one year and 20 percent after five years. d. 0 percent after one year and 1 percent after five years. DIF: 2 LOC: Elasticity REF: 5-0 TOP: Elasticity MSC: Applicative ANS: B NAT: Analytic Chapter 5 /Elasticity and Its Application ? 297 7. Which of the following statements about the consumers’responses to rising gasoline prices is correct? a. About 10 percent of the long-run reduction in quantity demanded arises because people drive less and about 90 percent arises because they switch to more fuel-efficient cars. b. About 90 percent of the long-run reduction in quantity demanded arises becausepeople drive less and about 10 percent arises because they switch to more fuel-efficient cars. c. About half of the long-run reduction in quantity demanded arises because people drive less and about half arises because they switch to more fuel-efficient cars. d. Because gasoline is a necessity, consumers do not decrease their quantity demanded in either the short run or the long run. DIF: 2 LOC: Elasticity REF: 5-0 TOP: Elasticity MSC: Applicative ANS: C NAT: Analytic Sec01 - Elasticity and Its Application - The Elasticity of Demand MULTIPLE CHOICE1. The price elasticity of demand measures how much a. quantity demanded responds to a change in price. b. quantity demanded responds to a change in income. c. price responds to a change in demand. d. demand responds to a change in supply. DIF: 1 LOC:Elasticity ANS: A NAT: Analytic MSC: Definitional2. REF: 5-1 TOP: Price elasticity of demand The price elasticity of demand measures a. buyers’responsiveness to a change in the price of a good. b. the extent to which demand increases as additional buyers enter the market. c. how much more of a good consumers will demand when incomes rise. d. the movement along a supply curve when there is a change in demand. DIF: 1 LOC: Elasticity ANS: A NAT: Analytic MSC: Definitional3. REF: 5-1 TOP: Price elasticity of demand The price elasticity of demand for a good measures the willingness of a. consumers to buy less of the good as price rises.b. consumers to avoid monopolistic markets in favor of competitive markets.c. firms to produce more of a good as price rises.d. firms to cater to the tastes ofconsumers. DIF: 1 LOC: Elasticity ANS: A NAT: Analytic MSC: Interpretive4. REF: 5-1 TOP: Price elasticity of demand 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 good to buy less of the good as its price increases.b. Price elasticity of demand reflects the many economic, psychological, and social forces that shape consumer tastes.c. Other things equal, if good x has close substitutes and good y does not have close substitutes, then the demand for good x will be more elastic than the demand for good y.d. All of the above are correct. DIF: 2 LOC: Elasticity ANS: D NAT: Analytic MSC: Interpretive REF: 5-1 TOP: Price elasticity of demand308 ? Chapter 5 /Elasticity and Its Application Figure 5-2 PricePaPbD1D3D2Quantity59. Refer to Figure 5-2. As price falls from Pa to Pb, which demand curve represents the most elastic demand? a. D1 b. D2 c. D3 d. All of the above are equally elastic. ANS: A NAT: Analytic MSC: Applicative DIF: 2 LOC: Elasticity REF: 5-1 TOP: Price elasticity of demand 60. Refer to Figure 5-2. As price falls from Pa to Pb, we could use the three demand curves to calculate three different values of the price elasticity of demand. Which of the three demand curves would produce the smallest elasticity? a. D1 b. D2 c. D3 d. All of the above are equally elastic. ANS: C NAT: Analytic MSC: Applicative DIF: 2 LOC:Elasticity REF: 5-1 TOP: Price elasticity of demand Table 5-1 Good Price Elasticity of Demand A B 61. Refer to Table 5-1. Which of the following is consistent with the elasticities given in Table 5-2? a. A is a luxury and B is a necessity. b. A is a good several years after a price increase, and B is that same good several days after the price increase. c. A is a Kit Kat bar and B is candy. d. A has fewer substitutes than B. ANS: D NAT: Analytic MSC: Analytical DIF: 3 LOC: Elasticity REF: 5-1 TOP: Price elasticity of demand Chapter 5 /Elasticity and Its Application ? 309 62. Refer to Table 5-1. Which of the following is consistent with the elasticities given in Table 5-2? a. A is grapes and B is fruit. b. A is T-shirts and B is socks.c. A is train tickets before cars were invented, and B is train tickets after carswere invented. d. A is diamond necklaces and B is beds. ANS: C NAT: Analytic MSC: Analytical DIF: 3 LOC: Elasticity REF: 5-1 TOP: Price elasticity of demand 63. Studies indicate that the price elasticity of demand for cigarettes is about A government policy aimed at reducing smoking changed the price of a pack of cigarettes from $2 to $6. According to the midpoint method, the government policy should have reduced smoking by a. 30%. b. 40%. c. 80%. d. 250%. ANS: B NAT: Analytic MSC: Applicative DIF: 3 LOC: Elasticity REF: 5-1 TOP: Price elasticity of demand 64. If a 15% increase in price for a good results in a 20% decrease in quantity demanded, the price elasticity of demand is a. b. c. d. ANS: C NAT: Analytic MSC: Analytical DIF: 2 LOC: Elasticity REF: 5-1TOP: Price elasticity of demand 65. If a 20% increase in price for a good results in a 15% decrease in quantity demanded, the price elasticity of demand is a. b. c. d. ANS: A NAT: Analytic MSC: Analytical DIF: 2 LOC: Elasticity REF: 5-1 TOP: Price elasticity of demand 66. If a 10% decrease in price for a good results in a 20% increase in quantity demanded, the price elasticity of demand is a. b. 1. c. d. 2. ANS: D NAT: Analytic MSC: Analytical DIF: 2 LOC: Elasticity REF: 5-1 TOP: Price elasticity of demand 67. If a 6% decrease in price for a good results in a 2% increase in quantity demanded, the price elasticity of demand is a. b.c. 3.d. 4. ANS: B NAT: Analytic MSC: Analytical DIF: 2 LOC: Elasticity REF: 5-1 TOP: Price elasticity of demand 310 ?Chapter 5 /Elasticity and Its Application 68. Suppose that quantity demand rises by 10% as a result of a 15% decrease in price. The price elasticity of demand for this good is a. inelastic and equal to b. elastic and equal to c. inelastic and equal to d. elastic and equal to ANS: A NAT: Analytic MSC: Analytical DIF: 2 LOC: Elasticity REF: 5-1 TOP: Price elasticity of demand 69. Suppose that quantity demand falls by 30% as a result of a 5% increase in price. The price elasticity of demand for this good is a. inelastic and equal to 6. b. elastic and equal to 6. c. inelastic and equal to d. elastic and equal to ANS: B NAT: Analytic MSC: Analytical DIF: 2 LOC: Elasticity REF: 5-1 TOP: Price elasticity of demand Table 5-2 The following table shows a portion of the demand schedule for aparticular good at various levels of income. Price $24 $20 $16 $12 $8 $4 Quantity Demanded (Income = $5,000) 2 4 6 8 10 12 Quantity Demanded (Income = $7,500) 3 6 9 12 15 18 Quantity Demanded (Income = $10,000) 4 8 12 16 20 24 70. Refer to Table 5-2. Using the midpoint method, when income equals $7,500, what is the price elasticity of demand between $16 and $20? a. b. c. d. ANS: D NAT: Analytic MSC: Analytical DIF: 2 LOC: Elasticity REF: 5-1 TOP: Price elasticity of demand 71. Refer to Table 5-2. Using the midpoint method, when income equals $5,000, what is the price elasticity of demand between $8 and $12? a. b. c. d. ANS: A NAT: Analytic MSC: Analytical DIF: 2 LOC: Elasticity REF: 5-1 TOP: Price elasticity of demand Chapter 5 /Elasticity and Its Application ?311 72. Refer to Table 5-2. Using the midpoint method, at a price of $16, what is the income elasticity of demand when income rises from $5,000 to $10,000?a. b. c. d. ANS: C NAT: Analytic MSC: Analytical DIF: 2 LOC: Elasticity REF: 5-1 TOP: Income elasticity of demand 73. Refer to Table 5-2. Using the midpoint method, at a price of $8, what is the income elasticity of demand when income rises from $7,500 to $10,000? a.b. c. d. ANS: C NAT: Analytic MSC: Analytical DIF: 2 LOC: Elasticity REF: 5-1 TOP: Income elasticity of demand 74. Refer to Table 5-2. Using the midpoint method, at a price of $12, what is the income elasticity of demand when income rises from $5,000 to $10,000? a.b. c. d. ANS: C NAT: Analytic MSC: Analytical DIF: 2。

曼昆《经济学原理》（第五版）习题解答目录第一章经济学十大原理 (1)第二章像经济学家一样思考 (7)第三章相互依存性与贸易的好处 (14)第四章供给与需求的市场力量 (22)第五章弹性及其应用 (31)第六章供给、需求与政府政策 (41)第七章消费者、生产者与市场效率 (50)第八章应用：赋税的代价 (58)第九章应用：国际贸易 (65)第十章外部性 (75)第十一章公共物品和公共资源 (84)第十二章税制的设计 (91)第十三章生产成本 (99)第十四章竞争市场上的企业 (109)第十五章垄断 (121)第十六章垄断竞争 (135)第十七章寡头 (143)第十八章生产要素市场 (153)第十九章收入与歧视 (162)第二十章收入不平等与贫困 (169)第二十一章消费者选择理论 (177)第二十二章微观经济学前沿 (187)第二十三章一国收入的衡量 (195)第二十四章生活费用的衡量 (204)第二十五章生产与增长 (210)第二十六章储蓄、投资和金融体系 (214)第二十七章基本金融工具 (221)第二十八章失业 (226)第一篇导言第一章经济学十大原理复习题1．列举三个你在生活中面临的重要权衡取舍的例子。

答：①大学毕业后，面临着是否继续深造的选择，选择继续上学攻读研究生学位，就意味着在今后三年中放弃参加工作、赚工资和积累社会经验的机会；②在学习内容上也面临着很重要的权衡取舍，如果学习《经济学》，就要减少学习英语或其他专业课的时间；③对于不多的生活费的分配同样面临权衡取舍，要多买书，就要减少在吃饭、买衣服等其他方面的开支。

2．看一场电影的机会成本是什么?答：看一场电影的机会成本是在看电影的时间里做其他事情所能获得的最大收益，例如：看书、打零工。

3．水是生活必需的。

一杯水的边际利益是大还是小呢?答：这要看这杯水是在什么样的情况下喝，如果这是一个人五分钟内喝下的第五杯水，那么他的边际利益很小，有可能为负；如果这是一个极度干渴的人喝下的第一杯水，那么他的边际利益将会极大。

问题与应用‎1．描写下列每‎种情况所面‎临的权衡取‎舍：A．一个家庭决‎定是否买一‎辆新车。

答：如果买新车‎就要减少家‎庭其他方面‎的开支，如：外出旅行，购置新家具‎；如果不买新‎车就享受不‎到驾驶新车‎外出的方便‎和舒适。

B．国会议员决‎定对国家公‎园支出多少‎。

答：对国家公园‎的支出数额‎大，国家公园的‎条件可以得‎到改善，环境会得到‎更好的保护‎。

但同时，政府可用于‎交通、邮电等其他‎公共事业的‎支出就会减‎少。

C．一个公司总‎裁决定是否‎新开一家工‎厂。

答：开一家新厂‎可以扩大企‎业规模，生产更多的‎产品。

但可能用于‎企业研发的‎资金就少了‎。

这样，企业开发新‎产品、利用新技术‎的进度可能‎会减慢。

D．一个教授决‎定用多少时‎间备课。

0答：教授若将大‎部分时间用‎于自己研究‎，可能会出更‎多成果，但备课时间‎减少影响学‎生授课质量‎。

E．一个刚大学‎毕业的学生‎决定是否去‎读研究生。

答：毕业后参加‎工作，可即刻获取‎工资收入；但继续读研‎究生，能接受更多‎知识和未来‎更高收益。

2．你正想决定‎是否去度假‎。

度假的大部‎分成本((机票、旅馆、放弃的工资‎))都用美元来‎衡量，但度假的收‎益是心理的‎。

你将如何比‎较收益与成‎本呢??答：这种心理上‎的收益可以‎用是否达到‎既定目标来‎衡量。

对于这个行‎动前就会作‎出的既定目‎标，我们一定有‎一个为实现‎目标而愿意‎承担的成本‎范围。

在这个可以‎承受的成本‎范围内，度假如果满‎足了既定目‎标，如：放松身心、恢复体力等‎等，那么，就可以说这‎次度假的收‎益至少不小‎于它的成本‎。

3．你正计划用‎星期六去从‎事业余工作‎，但一个朋友‎请你去滑雪‎。

去滑雪的真‎实成本是什‎么？现在假设你‎已计划这天‎在图书馆学‎习，这种情况下‎去滑雪的成‎本是什么？请解释之。

答：去滑雪的真‎实成本是周‎六打工所能‎赚到的工资‎，我本可以利‎用这段时间‎去工作。

如果我本计‎划这天在图‎书馆学习，那么去滑雪‎的成本是在‎这段时间里‎我可以获得‎的知识。

曼昆《经济学原理》（微观）第五版测试题库（14）（1）Chapter 14Firms in Competitive MarketsTRUE/FALSE1. For a firm operating in a perfectly competitive industry, total revenue, marginal revenue, and average revenue are all equal.ANS: F DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Average revenue | Marginal rev-enueMSC: Interpretive2. For a firm operating in a perfectly competitive industry, marginal reve-nue and average revenue are equal.ANS: T DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Average revenue | Marginal rev-enueMSC: Interpretive3. If a firm notices that its average revenue equals the current market price, that firm must be participating in a competitive market.ANS: F DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Average revenueMSC: Interpretive4. A profit-maximizing firm in a competitive market will increase produc-tion when average revenue exceeds marginal cost. ANS: T DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Average revenueMSC: Interpretive5. Because there are many buyers and sellers in a perfectly competitive market, no one seller can influence the market price. ANS: T DIF: 1 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Definitional6. Firms operating in perfectly competitive markets try to maximize prof-its.ANS: T DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Profit maximization929MSC: Applicative7. In competitive markets, firms that raise their prices are typically re-warded with larger profits.ANS: F DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Interpretive8. When an individual firm in a competitive market increases its produc-tion, it is likely that the market price will fall. ANS: F DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Interpretive9. In a competitive market, firms are unable to differentiate their product from that of other producers.ANS: T DIF: 1 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Interpretive10. Firms in a competitive market are said to be price takers because there are many sellers in the market and the goods offered by the firms are very similar if not identical.ANS: T DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Interpretive11. A firm's incentive to compare marginal revenue and marginal cost is an application of the principle that rational people think at the margin. ANS: T DIF: 1 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Interpretive12. By comparing the marginal revenue and marginal cost from each unit produced, a firm in a competitive market can determine the profit-maximizing level of production.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Interpretiveword⽂档可⾃由复制编辑Chapter 14/Firms in Competitive Markets 931 13. Firms operating in perfectly competitive markets produce an output level where marginal revenue equals marginal cost.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Marginal revenueMSC: Applicative14. A firm is currently producing 100 units of output per day. The man-ager reports to the owner that producing the 100th unit costs the firm $5. The firm can sell the 100th unit for $4.75. The firm should continue to pro-duce 100 units in order to maximize its profits (or minimize its losses). ANS: F DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Analytical15. A firm is currently producing 100 units of output per day. The man-ager reports to the owner that producing the 100th unit costs the firm $5. The firm can sell the 100th unit for $5. The firm should continue to produce 100 units in order to maximize its profits (or minimize its losses).ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Analytical16. A firm is currently producing 100 units of output per day. The man-ager reports to the owner that producing the 100th unit costs the firm $5. The firm can sell the unit for $6. The firm should produce more than 100 units in order to maximize its profits (or minimize its losses).ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Analytical17. A dairy farmer must be able to calculate sunk costs in order to deter-mine how much revenue the farm receives for the typical gallon of milk. ANS: F DIF: 1 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Sunk costs MSC: I nterpretive18. Because nothing can be done about sunk costs, they are irrelevant to decisions about business strategy.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Sunk costs MSC: I nterpretive19. A miniature golf course is a good example of where fixed costs be-come relevant to the decision of when to open and when to close for the season.ANS: F DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Sunk costs MSC: I nterpretive20. A popular resort restaurant will maximize profits if it chooses to stay open during the less-crowded “off season” when its total revenues exceed its variable costs.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Sunk costs MSC: I nterpretive21. All firms maximize profits by producing an output level where marginal revenue equals marginal cost; for firms operating in perfectly competitive in-dustries, maximizing profits also means producing an output level where price equals marginal cost.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Interpretive22. A firm operating in a perfectly competitive industry will continue to op-erate in the short run but earn losses if the market price is less than that firm’s average total cost but greater than the firm’s average variable cost. ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Supply curveMSC: Interpretive23. A firm operating in a perfectly competitive industry will continue to op-erate in the short run but earn losses if the market price is less than that firm’s average variable co st.ANS: F DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Supply curveMSC: Interpretive24. A firm operating in a perfectly competitive industry will shut down in the short run but earn losses if the market price is less than that firm’s aver-age variable cost.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Supply curveMSC: Interpretiveword⽂档可⾃由复制编辑Chapter 14/Firms in Competitive Markets 933 25. In the short run, a firm should exit the industry if its marginal cost ex-ceeds its marginal revenue.ANS: F DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Supply curveMSC: Interpretive26. In making a short-run profit-maximizing production decision, the firm must consider both fixed and variable cost. ANS: F DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Interpretive27. A firm will shut down in the short run if revenue is not sufficient to cov-er its variable costs of production.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Shut down MSC: I nterpretive28. Suppose a firm is considering producing zero units of output. We call this shutting down in the short run and exiting an industry in the long run. ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Shut down MSC: I nterpretive29. Suppose a firm is considering producing zero units of output. We call this exiting an industry in the short run and shutting down in the long run. ANS: F DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Shut down MSC: I nterpretive30. A firm will shut down in the short run if revenue is not sufficient to cov-er all of its fixed costs of production.ANS: F DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Shut down MSC: I nterpretive31. The supply curve of a firm in a competitive market is the average va-riable cost curve above the minimum of marginal cost.ANS: F DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Supply curveMSC: Interpretive32. When a profit-maximizing firm in a competitive market experiences rising prices, it will respond with an increase in production.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Interpretive33. The marginal firm in a competitive market will earn zero economic profit in the long run.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Economic profitMSC: Interpretive34. A profit-maximizing firm in a competitive market will earn zero ac-counting profits in the long run.ANS: F DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Accounting profitMSC: Interpretive35. In the long run, when price is less than average total cost for all possi-ble levels of production, a firm in a competitive market will choose to exit (or not enter) the market.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Interpretive36. In the long run, when price is greater than average total cost, some firms in a competitive market will choose to enter the market.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Interpretive37. In the long run, a firm should exit the industry if its total costs exceed its total revenues.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Interpretive38. When a resource used in the production of a good sold in a competi-tive market is available in only limited quantities, the long-run supply curve is likely to be upward sloping.ANS: T DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Supply curveMSC: Interpretiveword⽂档可⾃由复制编辑Chapter 14/Firms in Competitive Markets 935 39. A firm operating in a perfectly competitive industry will continue to op-erate if it earns zero economic profits because it is likely to be earning posi-tive accounting profits.ANS: T DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Interpretive40. A firm operating in a perfectly competitive industry will shut down in the short run if its economic profits fall to zero because it is likely to be earn-ing negative accounting profits.ANS: F DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Interpretive41. A firm operating in a perfectly competitive market may earn positive, negative, or zero economic profit in the long run. ANS: F DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Long-run supply curveMSC: Interpretive42. A firm operating in a perfectly competitive market may earn positive, negative, or zero economic profit in the short run. ANS: T DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Long-run supply curveMSC: Interpretive43. A firm operating in a perfectly competitive market earns zero economic profit in the long run but remains in business because the firm’s revenues cover the business owners’ opportunity costs.ANS: T DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Zero-profit conditionMSC: Interpretive44. A competitive market will typically experience entry and exit until ac-counting profits are zero.ANS: F DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Zero-profit conditionMSC: Interpretive45. The long-run equilibrium in a competitive market characterized by firms with identical costs is generally characterized by firms operating at effi-cient scale.ANS: T DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Zero-profit conditionMSC: Interpretive46. In the long run, a competitive market with 1,000 identical firms will ex-perience an equilibrium price equal to the minimum of each firm's average total cost.ANS: T DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Zero-profit conditionMSC: Interpretive47. In a long-run equilibrium where firms have identical costs, it is possible that some firms in a competitive market are making a positive economic prof-it.ANS: F DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Zero-profit conditionMSC: Interpretive48. When economic profits are zero in equilibrium, the firm's revenue must be sufficient to cover all opportunity costs. ANS: T DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Zero-profit conditionMSC: Interpretive49. The short-run supply curve in a competitive market must be more elastic than the long-run supply curve.ANS: F DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Supply curveMSC: Interpretive50. The long-run supply curve in a competitive market is more elastic than the short-run supply curve.ANS: T DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Supply curveMSC: InterpretiveSHORT ANSWERword⽂档可⾃由复制编辑Chapter 14/Firms in Competitive Markets 937 1. Describe the difference between average revenue and marginal reve-nue. Why are both of these revenue measures important to a prof-it-maximizing firm?ANS:Average revenue is total revenue divided by the quantity of output. Marginal revenue is the change in total revenue from the sale of each additional unit of output. Marginal revenue is used to determine the profit-maximizing level of production, and average revenue is used to help determine the level of profits. Note that for all firms, price equals average revenue because AR=(PxQ)/Q=P. But only for a firm operating in a perfectly competitive industry does price al-so equal marginal revenue.DIF: 2 REF: 14-1 NAT: Analytic LOC: Perfect competitionTOP: Price MSC: D efinitional2. List and describe the characteristics of a perfectly competitive market. ANS:There are many buyers and sellers in the market. The goods offered by the various sellers are largely the same. Firms can freely enter or exit the market. DIF: 2 REF: 14-1 NAT: Analytic LOC: Perfect competitionTOP: Competitive markets MSC: D efinitional3. Why would a firm in a perfectly competitive market always choose to set its price equal to the current market price? If a firm set its price below the current market price, what effect would this have on the market?ANS:The firm could not sell any more of its product at a lower price than it could sell at the market price. As a result, it would needlessly forgo revenue if it set a price below the market price. If the firm set a higher price, it would not sell anything at all because a competitive market has many sellers who would supply the product at the market price.DIF: 2 REF: 14-1 NAT: Analytic LOC: Perfect competitionTOP: Profit maximization MSC: A nalytical4. Use a graph to demonstrate the circumstances that would prevail in a competitive market where firms are earning economic profits. Can this sce-nario be maintained in the long run? Explain your answer.ANS:In a competitive market where firms are earning economic profits, new firms will have an incentive to enter the market. This entry will expand the number of firms, increase the quantity of the good supplied, and drive down pricesword ⽂档可⾃由复制编辑 and profits. Entry will cease once firms are producing the output level where price equals the minimum of the average total cost curve, meaning that eachfirm earns zero economic profits in the long run.DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximization MSC: A nalytical5. Explain how a firm in a competitive market identifies the prof-it-maximizing level of production. When should the firm raise production, and when should the firm lower production? ANS:The firm selects the level of output at which marginal revenue is equal tomarginal cost. If MR > MC, profit will increase if the firm increases Q. If MR < MC, profit will increase if the firm decreases Q. DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximization MSC: A nalytical6. News reports from the western United States occasionally report inci-dents of cattle ranchers slaughtering a large number of newborn calves and burying them in mass graves rather than transporting them to markets. As-suming that this is rational behavior by profit-maximizing "firms," explain what economic factors may influence such behavior.ANS:If the selling price is not sufficient to cover the variable cost of sending the calves to market, this (potentially emotionally upsetting) behavior makes economic sense.DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximization MSC: A nalytical。

5学原理》（微观）第五版测试题库第一章：经济学原理1.经济学的主要研究对象是什么？2.什么是稀缺性原则？3.请解释机会成本是如何计算的。

4.什么是边际分析原理？5.请解释机会成本递增的概念。

第二章：供求和市场机制1.什么是需求曲线？2.请解释需求量和需求曲线之间的区别。

3.供给曲线如何表示？4.请解释市场均衡的概念。

5.什么是价格弹性？第三章：消费者行为1.什么是边际效用？2.请解释效用最大化的概念。

3.什么是收入效应？4.请解释替代效应和收入效应如何影响需求变化。

5.什么是边际替代率？第四章：生产和成本1.请解释生产函数的概念。

2.什么是边际产品？3.请解释固定成本和可变成本之间的区别。

4.什么是边际成本？5.请解释长期平均成本和短期平均成本之间的区别。

第五章：利润、市场结构和行为1.请解释利润最大化的概念。

2.什么是垄断市场？3.请解释寡头垄断和垄断竞争之间的区别。

4.什么是欧元区？5.请解释价格歧视的概念。

第六章：劳动市场1.什么是劳动力市场？2.请解释劳动需求和劳动供给之间的关系。

3.什么是劳动力市场均衡？4.请解释工资刚性的概念。

5.什么是人力资本？以上是《5学原理》（微观）第五版的测试题库，涵盖了经济学原理、供求和市场机制、消费者行为、生产和成本、利润、市场结构和行为以及劳动市场等多个方面的知识点。

在准备考试或者复习课程内容时，使用这些题目进行测试可以帮助您巩固知识，检验自己的学习成果。

祝您取得好成绩！。