微观经济学试题英文版

Microeconomics - Testbank 1 (Hubbard/O'Brien)Chapter 5 Exernalities, Environmental Policy, and Public Goods1) A n externality is:A) a benefit realized by the purchaser of a good or service.B) a cost paid for by the producer of a good or service.C) a benefit or cost felt by someone who is not a producer or consumer of a good or service.D) a nything that is external or not relevant to the production of a good or service.2) I f your neighbor burns auto tires in the yard and you can smell them and cannot see sunlightbecause of the black smoke, you are experiencing:A) a positive externality.B) a negative externality.C) a private cost.D) a private benefit.3) Externalities:A) s hould be banned.B) s hould be subsidized.C) c an either be positive or negative.D) a re what the private consumer and producer in an exchange realize.4) I f you buy a sweater to keep you warm in the winter, you are experiencing a:A) p rivate benefit.B) e xternal benefit.C) s ocial cost because it cost you some money.D) l oss of consumer surplus.5) I f a negative exrternalitiy exists in reality, it will be experienced by:A) s ome people not directly involved in the production or consumption of the good orservice.B) t he producer of the good or service.C) t he consumers of the good or service.D) t he government.6) A n example of a positive externality would be:A) c leaning up the sidewalk on your block.B) g raduating from college.C) r epainting the house you live in.D) a ll of the above.7) W hich of the following is correct?A) P rivate cost equals external cost.B) P rivate benefit plus external benefit equals social benefit.C) E xternal cost minus private cost equals social cost.D) P rivate benefit equals external benefit minus social benefit.8) W hy might even well-meaning producers in a market economy pollute?A) T o avoid the external costs of productionB) B y polluting, supply is reduced and market price increases.C) P olluting producers are being irrational.D) T here is no good reason why some producers pollute.9) I f there is pollution in producing a good and service, then:A) e quilibrium price is too high and equilibrium quantity is too low.B) e quilibrium price and equilibrium quantity are too low.C) e quilibrium price and equilibrium quantity are too high.D) e quilibrium price is too low and equilibrium quantity is too high.10) B ecause producers do not bear the external cost of pollution:A) t he economically efficient level of production is achieved.B) p roduction is below the economically efficient level.C) p roduction is beyond the economically efficient level.D) t he market price is too high.Refer to Figure 5.1 for the questions below.Figure 5.111) F igure 5.1 shows:A) a positive externality.B) a negative externality.C) c ommon property.D) a public good.12) I n figure 5.1 the firm wants to produce:A) Q1.B) Q2.C) Q3.D) Q4.13) I n figure 5.1 the efficient output is:A) Q1.B) Q2.C) Q3.D) Q4.14) W hen a competitive market equilibrium is economically efficient:A) t here is a positive deadweight loss.B) p roducer and consumer surplus are exactly equal in size.C) t here are no positive and no negative external effects from consumption and production.D) A ll of these must be correct.15) W hich of the following is true when a negative external effect creates a deadweight loss?A) T he marginal benefit to consumers is equal to the marginal cost to society of the lastunits produced.B) T he marginal benefit to consumers is above the marginal cost to society of the last unitsproduced.C) T he marginal benefit to consumers is below the marginal cost to society of the last unitsproduced.D) N one of these are true.16) W hen there is a positive externality in a free market, there is:A) t oo much of the good produced and consumed.B) t oo little of the good produced and consumed.C) t he right amount of the good produced and consumed.D) a n economically efficient level of production and consumption.17) W hen there is a positive externality, then:A) t he marginal private benefit is less than the marginal social benefit at equilibrium.B) t he marginal private benefit is greater than the marginal social benefit at equilibrium.C) t he marginal private benefit is equal to the marginal social benefit at equilibrium.D) t he marginal private costs are declining.Refer to Figure 5.2 for the questions below.Figure 5.218) I f figure 5.2, the firm wants to produce:A) Q1.B) Q2.C) Q3.D) Q4.19) I f figure 5.2, the efficient output is:A) Q1.B) Q2.C) Q3.D) Q4.20) I f figure 5.2, the dead weight loss due to the externality is:A) F+JB) H+LC) T+UD) A+B+C+E+F21) T he level of pollution in reality should be:A) r educed completely to zero because by definition, it is a negative external effect.B) i gnored because it has always been present since the beginning of history.C) r educed to the point where the marginal benefit is equal to the marginal cost to society.D) l eft alone because the optimal level is controversial.22) T he best level of pollution for society is:A) z ero.B) w here total benefit from reducing the pollution is the greatest.C) w here marginal benefit from reducing the pollution is the greatest.D) w here net benefit from reducing the pollution is the greatest.23) T he Coase theorem is that:A) g overnment intervention is always needed if externalities are present.B) a ssigning property rights is the only thing the government should do in a marketeconomy.C) i f transactions costs are low, private bargaining will result in an efficient solution to theproblem of externalities.D) a free market equilibrium is always the best solution.24) I f government decides to control pollution by placing a tax on the product that is associatedwith the pollution, the size of the tax should be:A) t hat will force the market price so high that no buyer can afford the product.B) e qual to the social cost of the product.C) e qual to the private cost of the product.D) e qual to the external cost of the product.25) G overnment can increase the consumption of a good or service that has positive externalitiesby:A) s ubsidizing the production of the good or service so that the supply is increased andmarket price is reduced.B) t axing the production and consumption of the good or service.C) c onvincing everyone to consume the good.D) b y assigning property rights.26) W ho was the economist who first proposed that governments use taxes and subsidies tocorrect for externalities?A) R onald CoaseB) A. C. PigouC) A dam SmithD) n one of these27) T he imposition of a tax on the production of a polluting good or service that is equal to theexternal costs will:A) i ncrease the equilibrium market price.B) d ecrease the equilibrium quantity produced and consumed.C) d ecrease market supply of the product.D) a ll of the above.28) A good or service is considered to be excludable:A) i f you can keep other people who did not pay for the item from enjoying its benefits.B) i f you can't keep other people who did not pay for the item from enjoying its benefits.C) w hen you consume a unit of the good, there is one less for everyone else.D) w hen all people can be considered as an owner and no one is excluded from ownership.29) A good or service is considered to be nonexcludable:A) i f you can keep other people who did not pay for the item from enjoying its benefits.B) i f you can't keep other people who did not pay for the item from enjoying its benefits.C) w hen if you consume a unit, there is one less for everyone else.D) w hen all people are considered owners.30) W hen is a good or service considered to be rival in nature?A) I f you can keep other people who did not pay for the item from enjoying its benefits.B) I f you can't keep other people who did not pay for the item from enjoying its benefits.C) W hen you consume one unit there is one less for everyone else.D) A ll people are considered to be owners.31) A good that is both rival and excludable is a:A) p ublic good.B) p rivate good.C) n atural monopoly.D) c ommon resource.32) A good that is nonrivalrous and nonexcludable is a:A) p ublic good.B) p rivate good.C) n atural monopoly.D) c ommon resource.33) A good that is rival and nonexcludable is a:A) p ublic good.B) p rivate good.C) n atural monopoly.D) c ommon resource.34) A public good differs from a private good in that:A) o nly the government can produce public goods.B) i f a person does not pay for the good, they can be kept from enjoying the benefits of apublic good.C) i f you consume a unit of a public good, there is one less for everyone.D) n o one can be kept from enjoying the benefits of a public good and one person using itdoes not reduce the amount available for everyone else.35) I f someone enjoys the benefits from national defense but never pays any taxes to support it,that person is known in economics as a:A) t ax cheater.B) f ree loader.C) h omeless person.D) f ree rider.36) A n example of a good that has nonexclusive benefits would be:A) c akes for sale at a bakery.B) a light house.C) h ouses.D) t oothpicks.37) A n example of a natural monopoly type of good would be:A) c able television.B) a pples.C) a ir.D) n one of these.38) T he market demand for public goods can be determined by:A) b y adding up how much each citizen is willing to buy at every possible price.B) m ultiplying how much each citizen is willing to buy at every price.C) a dding up how much each consumer will pay for each unit of the public good.D) m ultiplying how much each consumer will pay for each unit of the public good.39) F or profit producers will produce only private goods because:A) t hey are small enough that everyone can afford them.B) t he cost of production is easily found.C) b uyers will be willing to pay for it because benefits are excludable.D) t hey are greedy.40) I n which of these situations is there no deadweight loss?A) F ree market production of a private good with a negative externalityB) F ree market consumption of a private good with a positive externalityC) F ree market production and consumption of a private good without any externalitiesD) C onsumption of a common resource without government restrictions41) O veruse of a common resource may be avoided in modern times by:A) g overnments taxing use of common resources.B) g overnments issuing tradeable permits for use of common resources.C) g overnments issuing quotas or legal limits for use of common resources.D) a ll of the above.42) I f you buy a product for your own use, it is a:A) p rivate good.B) p ublic good.C) n atural monopoly.D) c ommon resource.43) T he social cost of cutting trees for firewood in a government forest are:A) t he rising chance of flooding as more trees are cut.B) t he rising chance of flooding as more trees are cut plus the private cost of the cutting.C) o pportunity cost to the individual of cutting the wood.D) t he marginal costs of cutting the last tree.。

Chapter 5 Elasticity and Its Application1. If price elasticity of demand is2.0, this implies that consumers would ( c )a.buy twice as much of the good if price falls by 10 percent.b.require a 2 percent cut in price to raise quantity demanded of the good by 1percent.c.buy 2 percent more of the good in response to a 1 percent cut in price.d.require at least a $2 increase in price before showing any response to the priceincrease.2. If the price elasticity of demand within the price range from $1 and $1.25 for carrots is0.79 and for radishes is 1.6, then within that price range ( b )a.carrots are more price elastic than radishes.b.radishes are more price elastic than carrots.c.carrots and radishes must be substitute goods.d.carrots and radishes must be complementary goods.3. S ue’s Bagel Shop wants to estimate how responsive bagels are to a change in cream cheese prices. To accomplish this task, the following data would NOT be needed? ( a )a.Percentage change in bagel price.b.Original price of cream cheese.c.New quantity of bagels sold.d.Original quantity of bagels sold.4. If Weiskamp T-Shirt Co. lowers its price from $6 to $5 and finds that students increase their quantity demanded from 400 to 600 T-shirts, then the demand for Weiskamp T-shirts within this price range is ( b )a.price inelastic. c. unit elastic.b.price elastic.d. cross elastic.5. The slope of the demand curve is not the same as the price elasticity of demand because the slope of a demand curve ( b )pares percentage changes in quantity demanded and price.pares absolute changes in quantity demanded and price.c.obeys the law of demand.d.is not constant when the demand curve is linear.6. The cross elasticity of demand for substitute goods must be ( d )a.greater than one. c. zero.b.less than one. d. greater than zero.7. A 5 percent increase in the price of sugar reduces sugar consumption by about 10 percent. The increase causes households to ( b )a.spend more on sugar.b.spend less on sugar.c.spend the same amount on sugar.d.consumer more goods like coffee and tea that are complements of sugar.8. As a result of running high temperature this summer in the south of China, the corn crop declined sharply. If corn growers experienced an increase in sales revenue, the demand for corn must be ( b )a.price elastic. c. unitary elastic.b.price inelastic.d. perfectly inelastic.9. The U.S. Post Office finds that it now has extra costs associated with decontaminating first class mail for anthrax（炭疽病）. It is considering a rate hike, but it will only be successful in raising more revenue to pay for these additional costs if ( c )a.there are many substitutes for first class mail service.b.no anthrax is found on the mail.c.the demand for first class mail service is inelastic.d.the rate increase is a very large one.10. Suppose that the elasticity of supply of lawn mowers is 1.5. If the price of lawn mowers rises 5 percent, the quantity supplied of lawn mowers would ( b )a.decline 7.5 percent. c. rise 1.5 percent.b.rise 7.5 percent. d. rise 0.3 percent.11. A decrease in supply will raise the equilibrium price most when demand is ( b )a.relatively elastic. c. unit elastic.b.relatively inelastic.d. perfectly elastic.。

曼昆微观经济学英文版课后练习题第一章知识交流Chapter 1Ten Principles of EconomicsMultiple Choice1. The word that comes from the Greek word for "one who manages a household" isa. market.b. consumer.c. producer.d. economy.ANS: D DIF: 1 REF: 1-0TOP: Economy MSC: Definitional2. The word “economy” comes from the Greek word oikonomos, which meansa. “environment.”b. “production.”c. “one who manages a household.”d. “one who makes decisions.”ANS: C DIF: 1 REF: 1-0TOP: Economy MSC: Definitional3. Resources area. scarce for households but plentiful for economies.b. plentiful for households but scarce for economies.c. scarce for households and scarce for economies.d. plentiful for households and plentiful for economies.ANS: C DIF: 1 REF: 1-0TOP: Resources, Scarcity MSC: Interpretive4. Economics deals primarily with the concept ofa. scarcity.b. poverty.c. change.d. power.ANS: A DIF: 1 REF: 1-0TOP: Scarcity MSC: Definitional5. Which of the following questions is not answered by the decisions that every society must make?a. What determines consumer preferences?b. What goods will be produced?c. Who will produce the goods?d. Who will consume the goods?ANS: A DIF: 2 REF: 1-0TOP: Economies MSC: Interpretive6. The overriding reason as to why households and societies face many decisions is thata. resources are scarce.b. goods and services are not scarce.c. incomes fluctuate with business cycles.d. people, by nature, tend to disagree.ANS: A DIF: 2 REF: 1-0TOP: Scarcity MSC: Interpretive7. The phenomenon of scarcity stems from the fact thata. most economies’ production methods are not very good.b. in most economies, wealthy people consume disproportionate quantities of goods and services.c. governments restricts production of too many goods and services.d. resources are limited.ANS: D DIF: 2 REF: 1-0TOP: Scarcity MSC: Interpretive8. Approximately what percentage of the world's economies experience scarcity?a. 25%b. 50%c. 75%d. 100%ANS: D DIF: 1 REF: 1-0TOP: Scarcity MSC: Interpretive9. When a society cannot produce all the goods and services people wish to have, it is said that the economy isexperiencinga. scarcity.b. shortages.c. inefficiencies.d. inequities.ANS: A DIF: 2 REF: 1-0TOP: Scarcity MSC: Interpretive10. For society, a good is not scarce ifa. at least one individual in society can obtain all he or she wants of the good.b. firms are producing the good at full capacity.c. all members of society can have all they want of the good.d. those who have enough income can buy all they want of the good.ANS: C DIF: 1 REF: 1-0TOP: Scarcity MSC: Interpretive11. Which of the following products would be consideredscarce?a. golf clubsb. Picasso paintingsc. applesd. All of the above are correct.ANS: D DIF: 2 REF: 1-0TOP: Scarcity MSC: Interpretive12. Economics is the study ofa. production methods.b. how society manages its scarce resources.c. how households decide who performs which tasks.d. the interaction of business and government.ANS: B DIF: 1 REF: 1-0TOP: Economies, Scarcity MSC: Definitional13. Economics is the study ofa. how society manages its scarce resources.b. the government's role in society.c. how a market system functions.d. how to increase production.ANS: A DIF: 1 REF: 1-0TOP: Economies, Scarcity MSC: Definitional14. In most societies, resources are allocated bya. a single central planner.b. a small number of central planners.c. those firms that use resources to provide goods and services.d. the combined actions of millions of households and firms.ANS: D DIF: 1 REF: 1-0TOP: Resource allocation MSC: Interpretive15. The adage, "There is no such thing as a free lunch," isused to illustrate the principle thata. goods are scarce.b. people face tradeoffs.c. income must be earned.d. households face many decisions.ANS: B DIF: 2 REF: 1-1TOP: Tradeoffs MSC: Interpretive16. The adage, "There is no such thing as a free lunch," meansa. even people on welfare have to pay for food.b. the cost of living is always increasing.c. to get something we like, we usually have to give up another thing we like.d. all costs are included in the price of a product.ANS: C DIF: 1 REF: 1-1TOP: Tradeoffs MSC: Definitional17. Economists use the phrase "There is no such thing as a free lunch," to illustrate the principle thata. inflation almost always results in higher prices over time.b. nothing is free in a market economy.c. making decisions requires trading off one goal against another.d. if something looks too good to be true, it probably is not worth pursuing.ANS: C DIF: 2 REF: 1-1TOP: Tradeoffs MSC: Interpretive18. Which of the following statements best represents the principle represented by the adage, "There is no such thing asa free lunch"?a. Melissa can attend the concert only if she takes her sisterwith her.b. Greg is hungry and homeless.c. Brian must repair the tire on his bike before he can ride it to class.d. Kendra must decide between going to Colorado or Cancun for spring break.ANS: D DIF: 3 REF: 1-1TOP: Tradeoffs MSC: Applicative19. The principle that "people face tradeoffs" applies toa. individuals.b. families.c. societies.d. All of the above are correct.ANS: D DIF: 1 REF: 1-1TOP: Tradeoffs MSC: Applicative20. A typical society strives to get the most it can from its scarce resources. At the same time, the society attempts to distribute the benefits of those resources to the members of the society in a fair manner. In other words, the society faces a tradeoff betweena. guns and butter.b. efficiency and equity.c. inflation and unemployment.d. work and leisure.ANS: B DIF: 1 REF: 1-1TOP: Efficiency, Equity MSC: Interpretive21. Guns and butter are used to represent the classic societal tradeoff between spending ona. durable and nondurable goods.b. imports and exports.c. national defense and consumer goods.d. law enforcement and agriculture.ANS: C DIF: 1 REF: 1-1TOP: Tradeoffs MSC: Interpretive22. When society requires that firms reduce pollution, there isa. a tradeoff because of reduced incomes to the firms' owners and workers.b. a tradeoff only if some firms are forced to close.c. no tradeoff, since the cost of reducing pollution falls only on the firms affected by the requirements.d. no tradeoff, since everyone benefits from reduced pollution.ANS: A DIF: 3 REF: 1-1TOP: Tradeoffs MSC: Applicative23. A tradeoff exists between a clean environment and a higher level of income in thata. studies show that individuals with higher levels of income actually pollute less than low-income individuals.b. efforts to reduce pollution typically are not completely successful.c. laws that reduce pollution raise costs of production and reduce incomes.d. by employing individuals to clean up pollution, employment and income both rise.ANS: C DIF: 2 REF: 1-1TOP: Tradeoffs MSC: Applicative24. Which of the following phrases best captures the notion of efficiency?a. absolute fairnessb. equal distributionc. minimum wasted. equitable outcomeANS: C DIF: 1 REF: 1-1TOP: Efficiency MSC: Interpretive25. Which of the following is true?a. Efficiency refers to the size of the economic pie; equity refers to how the pie is divided.b. Government policies usually improve upon both equity and efficiency.c. As long as the economic pie continually gets larger, no one will have to go hungry.d. Efficiency and equity can both be achieved if the economic pie is cut into equal pieces.ANS: A DIF: 2 REF: 1-1TOP: Efficiency, Equity MSC: Interpretive26. Efficiency means thata. society is conserving resources in order to save them for the future.b. society's goods and services are distributed equally among society's members.c. society's goods and services are distributed fairly, though not necessarily equally, among society's members.d. society is getting the maximum benefits from its scarce resources.ANS: D DIF: 1 REF: 1-1TOP: Efficiency MSC: Definitional27. Economists use the word equity to describe a situation in whicha. each member of society has the same income.b. each member of society has access to abundant quantities of goods and services, regardless of his or her income.c. society is getting the maximum benefits from its scarce resources.d. the benefits of society's resources are distributed fairly among society's members.ANS: D DIF: 2 REF: 1-1TOP: Equity MSC: Interpretive28. Senator Smith wants to increase taxes on people with high incomes and use the money to help the poor. Senator Jones argues that such a tax will discourage successful people from working and will therefore make society worse off. An economist would say thata. we should agree with Senator Smith.b. we should agree with Senator Jones.c. a good decision requires that we recognize both viewpoints.d. there are no tradeoffs between equity and efficiency.ANS: C DIF: 2 REF: 1-1TOP: Efficiency, Equity MSC: Applicative29. Which of the following words and phrases best captures the notion of equity?a. minimum wasteb. maximum benefitc. samenessd. fairnessANS: D DIF: 1 REF: 1-1TOP: Equity MSC: Definitional30. When government policies are enacted,a. equity can usually be enhanced without an efficiency loss, but efficiency can never be enhanced without anequity loss.b. efficiency can usually be enhanced without an equity loss, but equity can never be enhanced without anefficiency loss.c. it is always the case that either efficiency and fairness are both enhanced, or efficiency and equity are bothdiminished.d. None of the above are correct.ANS: D DIF: 2 REF: 1-1TOP: Government, Efficiency, Equity MSC: Applicative31. A likely effect of government policies that redistribute income and wealth from the wealthy to the poor is that those policiesa. enhance equity.b. reduce efficiency.c. reduce the reward for working hard.d. All of the above are correct.ANS: D DIF: 2 REF: 1-1TOP: Government, Efficiency, Equity MSC: Interpretive32. When the government implements programs such as progressive income tax rates, which of the following is likely to occur?a. Equity is increased and efficiency is increased.b. Equity is increased and efficiency is decreased.c. Equity is decreased and efficiency is increased.d. Equity is decreased and efficiency is decreased.ANS: B DIF: 2 REF: 1-1TOP: Government, Efficiency, Equity MSC: Interpretive33. As a result of a successful attempt by government to cut the economic pie into more equal slices,a. it is easier to cut the pie, and therefore the economy can produce a larger pie.b. the government can more easily allocate the pie to those most in need.c. the pie gets smaller, and there will be less pie overall.d. government will spend too much time cutting and it causes the economy to lose the ability to produce enough pie for everyone.ANS: C DIF: 3 REF: 1-1TOP: Government, Efficiency, Equity MSC: Analytical34. When the government attempts to improve equity in an economy the result is oftena. an increase in overall output in the economy.b. additional government revenue since overall income will increase.c. a reduction in equity.d. a reduction in efficiency.ANS: D DIF: 2 REF: 1-1TOP: Government, Efficiency, Equity MSC: Interpretive。

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

M1When new firms enter a perfectly competitive market, what will be the likely result?The short-run market supply curve shifts right.2In the long run all a firm’s costs are variable. In this case, what is the exit criterion for a profit-maximizing firm?price is less than average total cost.What type of monopoly are patent and copyright laws major sources of?government-created monopoliesWhen a firm has little ability to influence market prices, it is said to be in what kind of a market?CompetitiveIn reference to setting the production level, what do we know about a firm’s cost curves?By themselves, they do not tell us what decisions the firm will make.Why does inefficiency arise from a monopoly?Some buyers will refrain from buying the good, due to the high price.131Which statement best applies to the long run?All costs can vary.2Which of the following is an example of explicit costs?payments made by the firm to others3Which of the following is an example of implicit costs?opportunity cost of resources owned by the firm4Which statement applies when marginal cost equals average total cost?Average total cost is at its minimum.5What would be subtracted from a firm's revenue to measure economic profit?opportunity costs6A firm has $300 million in revenues and explicit costs of $100 million. Its owners have invested $100 million in the company. This could have been invested at 10 percent per year. What is the firm's economic profit?$190 million7Which of the following is an example of variable cost in the short run?raw materials, energy costs, and hourly labour8Which statement best characterizes fixed costs?They are costs that do not vary with output.9What is marginal cost?the change in total cost that comes from a change in output10Which statement best explains economies of scale?Average cost declines in the long run11Because no money flows out of the business to pay for opportunity costs, they never show up on the financial statements. Therefore, which of these statements follows?This must be an economist's analysis of the business.12As production increases, how does a unit's share of fixed costs change?It continually decreases as output increases.13What is average total cost?total cost divided by the quantity of output14Marginal cost equals average total cost when average total cost is at a minimum.对15Diminishing marginal product occurs when the average product of an input declines as the quantity of the inputincreases.错16The quantity of output that minimizes the average variable cost is called the efficient scale of the firm.错17Marginal cost is the increase in total cost that arises from an extra unit of production.对18Diseconomies of scale arise when the long-run average total cost is diminishing as the quantity of output increases.错19The marginal product is essentially the additional unit of output per unit of input.对20The wonderful thing about labour is that the more people you hire, the more units you can make.错141Which statement best applies to a perfectly competitive firm with a positive economic profit?It will attract new firms into the industry in the long run.2What is a short-run supply curve for a perfectly competitive firm?the portion of the firm's marginal-cost curve that lies above the average-variable-cost curve3What is a characteristic of a perfectly competitive market?Marginal revenue equals average revenue.4When a perfectly competitive firm produces another unit of output, what equals its marginal revenue?price5A perfectly competitive firm is producing pencils for 10 cents each. If the firm produces 1500 pencils, what is its total revenue?￥1506In the short run, what is the level of output a profit-maximizing price taker should choose?P = MC, but only if P ≥ AVC7If prices tend to increase as industry output increases in the long run, which term best describes the long-run supply curve?slopes upward8What is the industry supply curve? the sum of firms' marginal-cost curves9Which of the following is the condition for a perfectly competitive market?There are many sellers and buyers, and the products produced in the market are similar.10Suppose that the price that Firm XYZ can receive for its output is $15 per unit. The average variable cost of production is $12 per unit. The average total cost of production is $17. In the short run, what conclusion can be reached about this firm? It should continue producing11What is a sunk cost? a cost that has already been committed and cannot be recovered12Which one of the following is not a condition for a firm's long-run decision to exit the market? P < TC13Mr. Smith's apple farm operates in a competitive market. If Smith reduces production by 15 percent, which consequence should ensue? no change in his prices14 A competitive firm will produce the output that allows it to maximize profits where total revenue is a maximum.错15The demand curve for a purely competitive industry is perfectly elastic, but the demand curve faced by the individual firm in a competitive market is downward sloping.错16Marginal revenue for the competitive firm is the additional revenue resulting from the sale of one more unit of output and is equal to the market price.对17Price, marginal revenue, and average revenue are identical for a competitive firm.对18The long-run equilibrium of a competitive market with free entry and exit has firms operating at their efficient scale, that is, the minimum average total cost.对19In a competitive market where MR = MC, firms will always maximize profits.对20A firm will shut down if the revenue it would get from producing is less than its total cost of production.错151What is the practice of selling the same goods to different customers at different prices but with the same marginal cost known as?price discrimination2 In the case of price discrimination, what would necessitate a lower price in the market? a more elastic demand3 What is average-cost pricing best used for?limiting a regulated monopolist to normal profits4At what level of output would a monopolist produce to maximize profit? producing the output for which marginal revenue equals marginal cost5Which of the following is the problem of marginal cost-pricing?prices are less than the firm's average variable cost 6What is a barrier to entry?a single producer is more efficient than a large number of producers7Which statement best describes a monopoly?A single firm supplies the industry's entire output.8Which of the following best explains inefficient allocation of resources under monopoly?P > MC9What is the simplest way for a monopoly to arise?own a key resource10Suppose that a regulatory commission sets the price required for efficient allocation of resources. What consequence would this have on the firm? It incurs losses.11What is the primary reason for a government-created monopoly?The government gives a firm the exclusive right to sell some good or service.12Which statement is the most accurate for a natural monopoly?A single firm can supply a good or service to an entire market at a smaller cost than could two or more firms.13How does the marginal-revenue curve for a monopoly appear?It lies below its demand curve.14If the regulated price equals average total cost, the monopolist earns positive economic profit.错15One of the problems with both marginal and average-cost pricing is that such pricing mechanisms give the monopolist no incentive to reduce costs.对16When firms are competitive, they exhibit downward-sloping demand curves; however, as monopoly is the sole producer in its market, it exhibits a horizontal market-demand curve.错17Marginal revenue for the monopoly is similar to marginal revenue for the competitive firm. It remains constant when the monopolist sells an additional unit of output.错18A natural monopoly arises because a single firm can supply a good or service to an entire market at lower cost than could two or more firms.对19A benevolent social planner who wanted to maximize total surplus in the market would ask the monopolist to produce the level of output where the demand curve and marginal-cost curve intersect.对20For a monopoly, price is equal to marginal revenue and is equal to marginal cost. For the competitive firm, price is greater than marginal revenue and is equal to marginal cost.错41Which statement is most relevant if buyers and/or sellers are price takers?They have no influence on market price.2Which statement is most relevant in the market for coffee when the price of tea, a substitute for coffee, increases? The demand for coffee will increase.3Nitrogen is an important input in the production of vegetables. If the price of nitrogen decreases, all else being equal, what will mostly likely happen in the market for vegetables?The supply of vegetables will increase.4What happens in the market for wine when an early frost damages vineyards nationwide?a decrease in the supply of wine and an increase in price5If buyers are expecting higher prices for apples in the near future, what is most likely to happen now in the market for apples?The demand for apples will increase.6Which statement is most relevant when there is a shortage of a good at the current price?The price is below the equilibrium price.7What will cause an increase in the price of homes and a decrease in the purchase of homes?The supply curve for housing has shifted leftward.8Which statement best describes a market that is in equilibrium?The price has reached the level where quantitysupplied equals quantity demanded.9If skis and ski boots are complementary goods, what is most relevant when the price of skis decreases?increased demand for ski boots10What is likely to happen when the price of a substitute good increases?an increase in equilibrium price and an increase in equilibrium quantity11Suppose there is a shortage of parking spaces in downtown Toronto during weekdays. How can the shortage be eliminated?allowing the price to rise12Because Coke and Pepsi are substitutes, what is likely to happen when the price of Coke decreases?The demand for Pepsi decreases13Which of the following causes a change in quantity demanded?the price of the good14Which of the following will not shift the supply curve?a change in the price of the good15Which event shifts the demand curve for apple jelly to the right?an increase in income if apple jelly is a normal good 16What is the effect on an inferior product of an increase in incomes?17What is the effect on product X of a decrease in the price of complementary product Z?18Use the following to answer the question: The demand for commodity X is represented by the equation Q D = 50 –5P and supply by the equation Q S = 5P– 10. What is the equilibrium price for X? $619Use the following to answer the question: The demand for commodity X is represented by the equation Q D = 50 –5P and supply by the equation Q S = 5P– 10. What is the equilibrium quantity? 2020Use the following to answer the question: The demand for commodity X is represented by the equation Q D = 50 –5P and supply by the equation Q S = 5P– 10. If the demand increases to QD = 80 – 5P, what is the new equilibrium price? $951Which statement is most accurate if the demand for a good is inelastic?Total revenue falls if the price of the good is decreased.2How would you describe the income elasticity of demand for a luxury good?large3A 2 percent increase in price causes the quantity demand to fall by 1.70 percent. What is the price elasticity of demand?0.854If the demand for a given product is inelastic, what is the likely effect on the quantity demanded when the price increases by 3 percent?decrease the quantity demanded by less than 3 percent5The price elasticity of demand for a good is 0.60. What would cause quantity demanded to increase by 12 percent?a 20 percent decrease in price6Which situation will result in a decrease in total revenue?Price rises and demand is elastic.7In the short run, which term best describes the price elasticity of supply of spaces in the university parking lot?perfectly inelastic8In which situation is supply price inelastic?A large percentage change in the price of the good causes a smaller percentage change in the quantity supplied.9Which expression is used to describe the relationship between the price of one good and the demand for another good?the cross-price elasticity of demand10Which of the following best describes the long-run supply curve?less elastic than the short-run supply curve11Which statement best describes the situation as the time horizon increases?Demand becomes more elastic.12Which of the following best illustrates the demand curve that is perfectly inelastic?vertical13Which combination helps to explain why better farming technology over the past 100 years has led to farmersleaving the industry and moving to the city?increased food supply coupled with inelastic food demand14A price elasticity of demand of 2 means that a 10 percent increase in price will result in a 20 percent decrease in quantity demanded.对15When demand is price inelastic, price and total revenue are positively related.对16Both the slope of a linear demand curve and the price elasticity of demand are constant.错17The elasticity of supply may be elastic at low levels of quantities supplied and inelastic at high levels of quantities supplied because firms often have a maximum capacity for production.对18Broadly defined markets tend to have more elastic demand than narrowly defined markets because it is easier to find close substitutes for broadly defined goods.错19The cross-price elasticity of demand measures how the quantity demanded of one good responds to a change in the price of another good.对20Because quantity demanded and income move in opposite directions, inferior goods have positive income elasticities.错71Which statement best describes producer surplus?the area above the supply curve and below the market price2Which term best describes the difference between what a consumer would willingly have paid for a unit of a product and the amount actually paid?consumer surplus3Which of the following define the total surplus?the difference between value to buyers and cost to seller4What happens to consumer surplus when the price falls in the free market? rises5What best explains the height of the supply curve?the sellers' costs6What is likely to occur if efficiency is exhibited?Resource allocation maximizes the total surplus received by all members of society.7What is your gain if you were willing to pay $3.05 for milk at the market but were charged only $2.05?a consumer surplus of $1.008What can be expected if the market price of a product rises?Producer surplus will rise.9To whom do free markets allocate the supply of goods?the buyers who value them most highly10To whom do free markets allocate the demand for goods?the sellers who can produce them at the least cost11Which of the following is exhibited by the marginal cost curve?cost of the marginal seller12What is the likely effect of moving production from a low-cost producer to a high-cost producer?decreased total surplus13What idea is Adam Smith best known for?concept of the "invisible hand"14What is the consumer surplus at equilibrium?Use the following information to answer question 14:The demandand supply curves for pens are given by:$0.2015What is the producer surplus at equilibrium?Use the following information to answer question 15:The demand and supply curves for pens are given by:$0.3316What is the total surplus at equilibrium?Use the following information to answer question 16:The demand and supply curves for pens are given by: $0.5317Total surplus is the sum of consumer and producer surplus, which is the area between the supply and the demand curves up to the equilibrium quantity.对18Free markets will not produce the quantity of goods that maximizes the sum of consumer and producer surplus.错19Market failure occurs when some unregulated markets do not allocate resources efficiently.对20Market power and externalities are examples of market failure.对。

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

1. Which of the following are macroeconomic topics/issues and which are microeconomic ones? (a) The level of consumer spending ........................................................................................ Macro (b) Subsidies paid to farmers ................................................................................................... Micro (c) The level of UK exports..................................................................................................... Macro (d) The price of DVDs .............................................................................................................. Micro (e) The rate of unemployment ................................................................................................ Macro (f) The average wage rate paid to textile workers .................................................................. Micro (g) The total amount spent by UK consumers on clothing and footwear ............................... Micro (h) The amount saved last year by UK households ................................................................ Macro2. Economists assume that economic decisions are made rationally . In the case of consumers,rational decision making means:(a) That consumers will not buy goods which increase their satisfaction by only a small amount.False(b) That consumers will attempt to maximise their individual satisfaction for the income theyearn.True (c) That consumers buy the sorts of goods that the average person buys. ............................... False(d) That consumers seek to get the best value for money from the goods they buy. ................ True3. Make a list of three things you did yesterday. What was the opportunity cost of each? Have a lookat your neighbours’ lists and see if you agree with their estimates of the opportunity costs.In each case you should think of the next best thing you could have done with your time or money , because it is that which you effectively ‘gave up’ to do the thing you chose to do. So, by choosing to go to the cinema, for example, the opportunity cost is what you could have done with the money you spent on the ticket and transport, and with the time spent at the cinema.Answers to Workshop 1Introducing Economics4. A country is capable of producing the following combinations of goods and services per period oftime, assuming that it makes full use of its resources of land, labour and capital.(a) Draw the production possibility curve for this country on the following diagram.combinations of two goods that acountry can produce within a giventime period. If a country was fullyusing its resources, then it wouldproduce somewhere on the curve.If there was unemployment orunder-utilisation of one or morefactors of production, the countrywould be producing inside the curve.The country could not producebeyond the curve.(i) 80 units of goods and 50 units of services ................................................ Y es(on the curve)(ii) 70 units of goods and 90 units of services........................................ No (outside the curve)(iii) 40 units of goods and 100 units of services....................................... Yes(inside the curve)(c) What is the opportunity cost (in terms of services) of producing 20 extra units of goods whenthis country is initially producing:(i) 60 units of goods ....................................................................... 40 units of services (90–50)(ii) 20 units of goods ................................................................... 20 units of services (140–120)Here, the opportunity cost of producing more goods is the reduction in the production ofservices that this entails. In the case of (i), producing an extra 20 units of goods wouldmean that production was now at 80 units. From the table, and the curve, you can seethat this will allow a maximum of 50 units of services to be produced. Thus productionof services has fallen from a maximum of 90 to a maximum of 50 units: a fall of 40units. Thus 40 units of services is the opportunity cost. In the case of (ii), moving fromproducing 20 units of goods to 40 units means moving from 140 units of services to 120units: an opportunity cost of 20 units of services.5.(a) Referring back to question 4, assume now that technological progress allows a four-foldincrease in the output of goods and double the amount of services for any given amount of resources. Assuming that the country’s total amount of resources stays the same, fill in the new figures on the following table to show the new production possibilities.(b) Draw the new production possibility curve on the following diagram.(c) How has this technological progress affected the opportunity cost of a unit of goods. (Tick thecorrect one of the following answers.)A. Stays the same.B. Doubles.C. Halves.D. Increases four times.E. Decreases four times.If you can produce four times as many units of goods and twice as many units of services with a given amount of resources, then, as production moves from services to goods, only half as many units of services will need to be sacrificed for each extra unit of goods (compared with the situation before the technological progress).6.In Country A, which has full employment of its resources, a large increase in the production ofgoods and services provided by the public sector (such as health, education and new roads) would only be possible if there were a reduction in the production of other goods and services, such as consumer goods. In Country B, however, which is suffering from economic recession, it is argued that an increase in public expenditure on such things as health, education and roads, would result in the production of more consumer goods.(a) Explain briefly why the effect of an increase in public expenditure on the production ofconsumer goods would be different in the two countries.In Country A, with resources fully employed, there could only be an increase in the production of certain goods and services (in this case health, education, new roads, etc.) by diverting resources away from the production of other goods. In Country B, however, by using resources more fully, there could be an increase in production of all goods. In fact, an increase in expenditure on public services, by increasing the incomes of those employed in the public sector, could lead to more expenditure on consumer goods, and this would stimulate firms to produce more of them to meet the extra demand.(b) The following diagrams show the production possibility curves for the Countries A and B.Mark the current production point on each diagram at a point consistent with the statement(c) Explain your answer to (b).In each case there is a movement from point a to point b. In the case of Country A, which is already producing on the production possibility curve, there is a movement along the curve, showing that the opportunity cost of producing more public-sector goods and services is the amount of private-sector goods and services that have to be sacrificed. In the case of Country B, production was inside the production possibility curve. By making a fuller use of resources, more of both categories of goods and services can be produced: point b is closer to the production possibility curve than is a.。

Chapter 13 The Costs of Production1. 2. 3. 4. 5. 6. 7. 8. 9. 10. _ __11. 12. 13. 14. 15. 16. 17. 18. 19. 20. _ __1. Which of the following is an implicit cost? ( )a.Salaries paid to workers who work for the firm.b.Interest on money borrowed to finance equipment purchases.c.Cash payments for raw materials.d.Foregone rent on office space owned and used by the firm.2. Sarah has been working for a law firm and earning an annual salary of $90,000. She decides to open her own practice. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Sarah will cover her start-up expenses by cashing in a $20,000 certificate of deposit on which she was earning annual interest of $1,000. Assuming that there are no additional expenses, Sarah’s annual implicit costs wil l equal ( )a.$55,200.b. $221,400.c. $91,000.d. $146,200.3. Economists assume that the goal of the firm is to ( )a.maximize total revenue. c. minimize costs.b.maximize profits. d. do all of the above.4. The difference between accounting profit and economic profit relates to ( )a.the manner in which revenues are defined.b.how total revenue is calculated.c.the manner in which costs are defined.d.the price of the good in the market.5. As Al’s Radiator Co. continues to add workers, while keeping the same amount of machinery, some workers may be underutilized because they have little work to do while waiting in line to use the machinery. When this o ccurs, Al’s Radiator Co. encounters ( )a.economies of scale. c. increasing marginal product.b.diseconomies of scale. d. diminishing marginal product.6. Which of the following is the best example of a variable cost? ( )a.Monthly payments for hired labor.b.Property tax payments.c.Monthly rent payments for a warehouse.d.Pension payments to retired workers.7. Smith Tire Co. has total fixed costs of $100,000 per year. The firm’s average vari able cost is $80 for 10,000 tires. At that level of output, the firm’s average total costs equal ( )a.$90.b. $100.c. $110.d. $120.8. Miller Technologies has average variable costs of $6 and average total costs of $10 when it produces 1,000 units of output. The firm’s total fixed costs equal ( )a.$2,000.b. $3,000.c. $4,000.d. $5,000.9. At a firm’s current output level of 200 units per week, it has 10 employ ees at a weekly wage of $500 each. Raw materials, which are ordered and delivered daily, cost $1,000 per week. The weekly cost of the firm’s capital is $1,250. Which of the following statements is correct? ( )TOTAL VARIABLE COST TOTAL FIXED COST TOTAL COSTa. $5,000 $2,250 $7,250b. $6,000 $1,250 $7,250c. $1,250 $6,000 $7,250d. $2,250 $ 500 $2,75010. If marginal cost is greater than average total cost then ( )a.profits are increasing.b.economies of scale are becoming greater.c.average total cost remains constant.d.average total cost is increasing.11. When the marginal product of labor falls, the marginal cost of output ( )a.falls, then rises. c. rises.b.becomes negative. d. remains constant.12. The minimum points of the average variable cost and average total cost curves occur where ( )a.the marginal cost curve lies below the average variable cost and average totalcost curves.b.the marginal cost curve intersects those curves.c.wages are the lowest.d.the slope of total cost is the smallest.13. If Franco’s Pizza Parlor knows that the marginal cost of the 500th pizza is $3.00 and that the average total cost of making 499 pizzas is $3.30, then ( )a.average costs are rising at Q = 500.b.average costs are falling at Q = 500.c.total costs are falling at Q = 500.d.average variable costs must be falling.14. Economies of scale ( )a.requires a change in the size of operations and therefore is a long-runconsideration.b.requires a more intensive use of existing plant and therefore is a short-runconsideration.c.means that a doubling of plant size will double output.d.requires a change in the size of plant and therefore is a short-run consideration.15. Some reasons that firms may experience diseconomies of scale include ( )a.the firm is too small to take advantage of specialization.rge management structures may be bureaucratic and inefficient.c.if there are too many employees, the work place becomes crowded and peoplebecome less productive.d.average fixed costs begin to rise again.16. A local bagel company plans to keep and maintain its bagel factory, which is estimated to last 25 years. All cost decisions it makes during the 25-year period ( )a.are short-run decisions.b.are long-run decisions.c.involve only maintenance of the factory.d.are zero, since the cost decisions were made at the beginning of the business.。