经济学原理习题1-2

1-2

1.When a society cannot produce all the goods and services people wish to have, the economy is experiencing

a. s carcity.

b. s urpluses.

c. i nefficiencies.

d. i nequalities.

2. The study of how society manages its scarce resources is most closely associated with which field of study?

a. e nvironmental studies

b. e conomics

c. m anagement

d. a ccounting

3. John is an athlete. He has $120 to spend and wants to buy either a heart rate monitor or new running shoes. Both the heart rate monitor and running shoes cost $120, so he can only buy one. This illustrates the principle that

a. t rade can make everyone better off.

b. p eople face trade-offs.

c. r ational people think at the margin.

d. p eople respond to incentives.

4. In economics, the cost of something is

a. t he dollar amount of obtaining it.

b. a lways measured in units of time given up to get it.

c. w hat you give up to get it.

d. o ften impossible to quantify, even in principl

e.

5. A rational decision maker takes an action only if the

a. m arginal benefit is less than the marginal cost.

b. m arginal benefit is greater than the marginal cost.

c. a verage benefit is greater than the average cost.

d. m arginal benefit is greater than both the average cost and the marginal cost.

6. Suppose the state of Wyoming passes a law that increases the tax on cigarettes. As a result, smokers who live in Wyoming start purchasing their cigarettes in surrounding states. Which of the following principles does this best illustrate?

a. P eople respond to incentives.

b. R ational people think at the margin.

c. T rade can make everyone better off.

d. M arkets are usually a good way to organize economic activity.

7. Trade between the United States and China

a. b enefits both the United States and China.

b. i s a losing proposition for the United States because Chinese labor is less expensive

than U.S. labor.

c. i s a losing proposition for China because capital is much more abundant in the U.S.

than in China.

d. i s a losing proposition for China because U.S. workers are more productive than

Chinese workers.

8. The "invisible hand" directs economic activity through

a. a dvertising.

b. p rices.

c. c entral planning.

d. g overnment regulations.

9. One reason we need government, even in a market economy, is that

a. t here is insufficient market power in the absence of government.

b. p roperty rights are too strong in the absence of government.

c. t he invisible hand is not perfect.

d. B oth a and b are correct.

10. Productivity is defined as the

a. a mount of goods and services produced from each unit of labor input.

b. n umber of workers required to produce a given amount of goods and services.

c. a mount of labor that can be saved by replacing workers with machines.

d. a ctual amount of effort workers put into an hour of working tim

e.

11. Inflation is defined as

a. a period of rising productivity in the economy.

b. a period of rising income in the economy.

c. a n increase in the overall level of output in the economy.

d. a n increase in the overall level of prices in the economy.

12. The short-run tradeoff between inflation and unemployment implies that, in the

short run,

a.a decrease in the growth rate of the quantity of money will be accompanied by an

increase in the unemployment rate.

b . an increase in the growth rate of the quantity of money will be accompanied by an increase in the unemployment rate.

c.policymakers are able to reduce the inflation rate and, at the same time, reduce the

unemployment rate.

d policymakers can influenc

e the inflation rate, but not the unemployment rate. Case 1-1

Suppose that you have a choice between going to the movies with a friend for two hours or working at your job. If you go to the movies, you will spend $7 on a ticket and $5 on popcorn. If you choose to work, you will earn $10 an hour.

13. Refer to Case 1-1. What is your opportunity cost of going to the movies?

14. Refer to Case 1-1. What is your opportunity cost of working?

Answers to 1-2

1.a

2.b

3.b

4.c

5.b

6.a

7.a

8.b

9.c 10.a 11.d 12.a

13.$7+$5+$10*2=$32

14. The enjoyment you would have received from going to the movies with your friend.