微观经济学原理习题集

1. The scientific method is not applicable to the study of economics because e

conomics is not a true science.

A) True B) False

2. Hypotheses derived from economic analysis can be validated through e

mpirical analysis, but hardly ever with absolute certainty.

A) True B) False

3. Which of the following statements relates to the concept of efficiency?

A) The absence of waste.

B) Using resources as effectively as possible.

C) Being able to produce more of one good only by producing less of so

mething else.

D) All the above. E) b. and c. only.

5. Mass unemployment of resources means society operates inside its productio

n-possibility frontier.

A) True B) False

6. If two goods use the same resources and the same technology, the pro

duction possibilities curve between the two goods will have a positive slope.

A) True B) False

7. It is scarcity that makes goods economic goods. A) True B) False

8. Which of the following is the most basic of the subjects with which t

he study of economics must try to deal?

A) Markets. B) Money.

C) Profit seeking.

D) The price mechanism. E) Scarcity.

9. Poor money management by the government, aside from increasing the

unemployment rate, will have a relatively small effect on the economy.

A) True B) False

11. Barter is inconvenient because:

A) bargaining power is unequal between rich and poor. B) without money, who can define \values?

C) my wants and supplies do not match your supplies and wants. D) it leads to imperfect competition. E) all of the above.

12. The economic role of government in mixed economies can include: A) provision of public goods. B) tax collections.

C) income redistribution. D) all of the above. E) none of the above.

13. By the \hand,\Smith meant the influence and lobbying of th

e hidden interest groups.

A) True B) False

14. A society which forgoes present consumption:

A) is forced to do so because of excessive consumption within the countr

y in the past.

B) may be devoting new resources to new capital formation. C) is merely devoting resources to the replacement of capital.

D) expects to consume only that amount tomorrow which was foregone to

day.

E) does none of the above.

15. An economic good is valued in part by its scarcity. A) True B) False

16. The statement that roundabout methods of production are often more ef

ficient than more direct methods:

A) means that roundabout methods use the same inputs as more direct me

thods, except for time, which is not a scarce economic good.

B) means that consumers ought to choose those goods which most lend th

emselves to roundabout methods of production.

C) means that the most roundabout method is always the most efficient m

ethod of producing any output.

D) is false, for direct and indirect methods of production are usually the s

ame in terms of efficiency.

E) suggests that foregone consumption devoted to investment sometimes in

creases future output in ways that more closely match individual and/or social desires.

17. Which of the following statements is true of specialization?

A) Specialization is inconsistent with the idea of individual freedom. B) Economies that practice a division of labor are morally superior to tho

se that do not.

C) In accepting specialization, a person sacrifices his or her own interests

for the sake of society's interest.

D) While specialization has enormous advantages, the costs outweigh them.

E) Increased productivity is more likely to be achieved through specializati

on.

18. In an affluent modern society, businesses may have to offer workers m

ore fulfilling jobs.

A) True B) False

19. Consumers vote their dollars primarily in: A) labor markets. B) land markets. C) capital markets. D) goods markets . E) none of the above.

20. An example of legal limitations on property rights is the prohibition of

pollution.

A) True B) False

21. Lower prices coax out higher quantities demanded along a downward-sl

oping demand curve.

A) True B) False

22. An increase in price will lead to a lower quantity demanded because: A) suppliers will supply only the smaller amount. B) quality deteriorates.

C) people will purchase less of the good. D) all of the above. E) none of the above.

se the following to answer question 24:

Table 1

The Market for Potato Chips

(quantities measured in bags per week)

Price Quantity Supplied Quantity Demanded $1.00 500 2000 2.00 1000 1750 3.00 1500 1500 4.00 2000 1250 5.00 2500 1000

24. According to Table 1, the equilibrium price for potato chips is: A) $1.00. B) $2.00. C) $2.50. D) $3.00. E) $4.00.

25. Upward-sloping supply curves are the result of: A) increasing returns to scale. B) increasing costs of production. C) changes in government policies. D) changes in technology. E) none of the above

26. To say that a price \the market\is to say that everyone who w

ants that commodity is getting all they want.

A) True B) False

27. The position of the supply schedule for American-made cars will not b

e directly affected by which of the following?

A) Union wage rates. B) Car prices.

C) The possibility of strikes.

D) A change in assembly technology. E) All of the above will affect supply.

28. The demand curve for a normal good will shift to the right if: A) income increases. B) population increases.

C) the price of a substitute good increases. D) all the above.

E) none of the above.