微观经济学Chapter1-16英文习题

Chapter 11. Economic analysis:A) involves some simplifications of reality.B) is only vaguely related to reality because if it did so coincide, it would not still be theory.C) is impossible, because of the impossibility of a controlled experiment.D) if it is good theory, involves no simplification of reality.E) involves so much distortion of reality as to be worthless.Ans: A2. What are economic goods?A) Goods that are very expensive.B) Goods that are in scarce or limited supply.C) Goods that a country produces and then trades to another county.D) Goods that are vital to an individual's welfare.E) All of the above.Ans: B3. "Scarcity" in economics refers basically to:A) periods of famine.B) monopolization of existing supplies of goods.C) monopolization of resources to provide goods.D) monopolization of outlets to sell goods.E) none of the above.Ans: E4. "Distribution" in economics refers to:A) retailing, wholesaling, and transportation.B) what.C) how.D) for whom.E) none of the above.Ans: D5. The three questions of what, how, and for whom:A) relate to the three factors of production.B) exist because of scarcity.C) are more of a problem in a market economy.D) are more of a problem in a command economy.E) are no longer relevant.Ans: B6.The description of economics as, "cool heads in the service of warm hearts", means that:A) allocating scarce resources may require painful decisions.B) costs and benefits need to be weighed objectively.C) the proper balance must be struck between the discipline of the market and the generosity of the welfare state.D) all of the above.E) none of the above.Ans: D7. When moving along a production possibilities frontier, the opportunity cost to society of obtaining more of one of the two goods:A) is measured in dollar terms.B) usually decreases as more of the good is produced.C) is measured by the amount of the other good that must be given up.D) is measured by the additional resources that must be used to produce the good.E) is usually constant.Ans: C8.These data reflect three possible combinations of food and nothing that can be produced from a given set of resources.Food 10 5 0Clothing O X 50Refer to the above data. If both clothing and food always use all inputs in the same proportion, then X must be:A) 25.B) more than 25.C) less than 25.D) 50.E) cannot not be determined from the dataAns: A9. Being on the production-possibility frontier between guns and butter means that:A) it is impossible to produce any more guns.B) it is impossible to produce any more butter.C) more guns can be produced only by doing without some butter.D) population is in equilibrium.E) if society becomes more productive in producing butter, then we can have morebutter but not more guns.Ans: C10. A shift in a production-possibility frontier can result from:A) unemployment.B) inflation.C) changes in production techniques.D) changes in the combination of goods produced.E) changes in consumers' tastes.Ans: C11Figure 1-1Which point on the production-possibility frontiers drawn in Figure 1 indicates no consumption goods being produced?A) A.B) B.C) C.D) D.E) E.Ans: E12. Of the following points, which point reflects the most efficient use of available resources in relation to frontier AE in Figure 1-1?A) F.B) G.C) C.D) H.E) Cannot tell from the information provided.Ans: C13.Relative to frontier A'E' in Figure 1-1, which of the following points is least efficient?A) B'.B) C'.C) B.D) C.E) F.Ans: E14. Point A on which panel in Figure 1-2 represents an inefficient use of resources?A) Panel A.B) Panel B.C) Panel C.D) Panel D.E) Panel E.Ans: D15. For a theory to be useful, it must be confirmed in each test case.Ans: FalseCHAPTER 21. In a market system, the what decision is made most basically byA) representative government.B) national planning.C) bankers.D) advertisers and their ability to persuade buyers.E) spending decisions of those with money.Ans: E2. In a market economy, the presumed harmony between individual and public interest depends upon:A) the good will of private business people.B) careful planning and coordination of economic activity.C) altruism on the part of consumers.D) competitive markets and the pursuit of self-interest by individuals.E) the wisdom of government decisions.Ans: D3. Pollution control policy is directed first and foremost at improving:A) equity.B) efficiency.C) stability.D) all of the above.E) none of the aboveAns: B4. Who is in charge of a market economy? That is, what agents and factors are the most important in determining market outcomes?A) Large companies.B) Congress and the president.C) Consumers alone.D) All producers.E) Consumers and technology.Ans: E5. The principle of the "invisible hand" claims that:A) the selfish pursuits of everyone's own interest will lead to the best good for all under market competition.B) government must gently guide economic activity so that the best for all will be attained.C) government policies work like an invisible hand, steering resources to their best use.D) producers must quietly cooperate so that prices are not so low as to cause losses.E) none of the above.Ans: A6. Consumers vote their dollars primarily in:A) labor markets.B) land markets.C) capital markets.D) goods markets .E) none of the above.Ans: D7. 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 those 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 specialization.Ans: E8. Which of the following is not an example of government regulation designed to curb a negative externality?A) Anti-child labor laws.B) Anti-pollution laws.C) A national sales tax.D) Legislation against strip mining.E) The Clean Air Act.Ans: C9. Prices in factor markets are primarily determined byA) government regulation.B) big business collusion.C) the interaction of business supply without household demand.D) the interaction of household supply with business demand.E) none of the above.Ans: D10. An economy dominated by imperfect competition is characterized byA) too much output, and low prices compared to perfect competition.B) same amount of output, and low prices compared to perfect competition.C) too little output, and low prices compared to perfect competition.D) too little output, and high prices compared to perfect competition.E) too much output, and high prices compared to perfect competition.Ans: D11. Which of the following is the key requirement for imperfect competition?A) Advertising.B) Many buyers.C) Many sellers.D) Ability of a buyer or seller to affect a good's price.E) Government policies.Ans: D12. Of the three basic problems in our modern economy, prices in a market system solve:A) what and for whom, but physical scientists solve how.B) what and how, but for whom is determined by social scientists.C) how and for whom, but Congress solves the what.D) each of the above, and no two are contradictory.E) none of the above is accurate.Ans: E13. Which of the following would best determine, in a market economy, the answer to the for whom question?A) Fairness.B) International trade patterns.C) Pricing of factors of production that people own.D) Cost minimization.E) Consumers' tastes and needs.Ans: C14. How goods are produced is determined by:A) consumer demand.B) government intervention to force businesses to produce goods cheaply.C) big business activity.D) business competition to buy factor inputs and sell goods most cheaply.E) none of the above.Ans: D15. A "mixed economy may involve both perfect and imperfect competition.Ans: TrueCHAPTER 31.If E were the old equilibrium in the market for wheat in the figure below, and E' the new one, which of the following could have caused the change?A) Consumer income rose, causing a supply shift.B) Bad weather caused a supply shift.C) Consumer income rose, causing a demand shift.D) Supply and demand both shifted.E) None of the above are plausible descriptions.Ans: C2. The demand curve for a normal good will shift to the left if:A) income increases.B) population increasesC) the price of a substitute good decreases.D) all the above.E) none of the above.Ans: C3. A price at which the amount people wish to buy exceeds the amount that people wish to produce (given upward-sloping supply curves):A) lies above the equilibrium, market clearing price.B) lies below the market clearing price.C) will induce a shift in the demand schedule to achieve equilibrium.D) is impossible.E) is none of the above.Ans: B4. An increase in the supply of commodity X for any given price of X could be expected to be caused byA) an increase in the prices of other commodities.B) an increase in the prices of factors of production important to this commodity.C) a reduction in the prices of factors of production important to this commodity.D) an increase in consumer income.E) none of the above.Ans: C5. Given the supply and demand curves drawn for a normal good in Figure 3-2, an increase in income can be expected to cause:A) equilibrium price and quantity to increase.B) equilibrium price to increase and equilibrium quantity to fall.C) equilibrium price to increase while equilibrium quantity holds steady.D) equilibrium price and quantity to fall.E) equilibrium price to fall and equilibrium quantity to climb.Ans: A6. Let P* and Q* represent market clearing price and quantity, respectively. Given the supply and demand curves drawn in Figure 3-2, an increase in the price of an input employed in the production of Q can be expected to cause:A) P* and Q* to climb.B) P* to climb while Q* falls.C) P* to climb while Q* holds steady.D) P* to fall while Q* climbs.E) P* and Q* to fall.Ans: B7. 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.Ans: C8. 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 aboveAns: E9. Suppose that at the current market price, the amount which producers wish to produce and sell exceeds the amount that consumers wish to purchase. This price:A) lies above the market clearing price.B) lies below the market clearing price.C) is impossible.D) will induce a shift in the demand schedule.E) none of the above.Ans: A10. In a competitive market, the market clearing quantity is determined primarily by:A) the supply of the good.B) the cost of producing the good in question.C) the interaction of supply and demand.D) the decisions of the buyers as to how much they are willing to pay.E) all of the above.Ans: E11.Let P* and Q* in Figure 3-4 represent market clearing price and quantity, respectively. Given the supply and demand curves drawn in Figure 3-4, a reduction in the price of a substitute good for Q can be expected to cause:A) P* and Q* to climb.B) P* to climb while Q* declines.C) P* to climb while Q* holds fixed.D) P* to fall while Q* climbs.E) P* and Q* to fall.Ans: E12. Let P* and Q* represent market clearing price and quantity, respectively. Given the supply and demand curves drawn in Figure 3-4, a reduction in the price of an input used in the production of Q can be expected to cause:A) P* and Q* to climb.B) P* to climb while Q* falls.C) P* to climb while Q* holds steady.D) P* to fall while Q* climbs.E) P* and Q* to fall.Ans: D13. Assume that automotive workers go on strike, so that the production of cars falls. Given the supply and demand curves in Figure 3-5, which of the following would result in comparison to the initial equilibrium position?A) Prices fall, Quantity fallsB) Prices rise, Quantity fallsC) Prices rise, Quantity risesD) Prices and Quantity do not change.E) None of the above.Ans: B14. Assume that A represents demand for cars and B represents supply of cars. If A: P = 10,000 - 2Q and B: P = 6000 + 2Q, the equilibrium price and quantity are:A) P = 1000, Q = 8000B) P = 800, Q = 100C) P = 8000, Q = 1000D) P = 100, Q = 800E) None of the above.Ans: C15. An increase in demand means a movement to a higher price along a given demand curve.Ans: FalseCHPATER 41. Rank the points A, B and C on the demand curve in the figure below in order of greatest to least elasticity of demand.A) C, A, B.B) B, A, C.C) A, B, C.D) They are of equal elasticity.E) More information is needed.Ans: C2. An increase in supply will lower price unless:A) supply is perfectly price inelastic.B) demand is perfectly price elastic.C) it is followed by a reduction in quantity demanded.D) demand is highly price inelastic.E) both demand and supply are highly price inelastic.Ans: B3. A straight-line demand curve has which of the following properties?A) Constant slope and varying price elasticity.B) Constant income elasticity with varying slope.C) Varying slope and varying cross elasticity.D) Constant slope and constant price elasticity.E) None of the above may be asserted in general.Ans: A4. If the burden of an excise tax is shifted forward completely onto the consumer, we can say that:A) supply is perfectly price elastic.B) demand is perfectly price elastic.C) demand is more price elastic than supply.D) supply is price inelastic and demand is price elastic.E) none of the above.Ans: A5. In "tight" housing markets, rent controls are often applied to hold the price of housing to a "reasonable" level. What is the immediate effect of this price policy with respect to the allocative functions of prices, and the relative incomes of tenants and landlords?A) The allocative function of prices is impaired, but the tenants are prevented from gaining at the expense of the landlords.B) The allocative function of prices is not impaired, and the tenants are prevented from gaining at the expense of landlords.C) The allocative function of prices is impaired, and the tenants who find housing gain at the expense of landlords.D) The allocative function of prices is not impaired, but the landlords gain at the expense of tenants who do not find housing.E) None of the above.Ans: C6. The price elasticity of supply shown in Figure 4-8 between points A and B is:A) .1.B) .5.C) 1.D) 5.E) none of the above.Ans: C7. Suppose that successive price reductions reduce total revenue. The supplier faces a demand curve that is, in this region:A) price elastic.B) unitary elastic.C) infinitely price elastic.D) indeterminate.E) price inelastic.Ans: E8. "If its advocates are correct, the minimum-wage bill passed by the House of Representatives would raise wages for nearly 7 million underpaid workers, but would have no noticeable effect on employment." The quotation implies that the demand for the labor services of the 7 million workers mentioned, with respect to the price of labor services, has elasticity equal to:A) 2.B) 5.C) 1.D) 0.E) .5Ans: D9. A horizontal demand curve may be described as:A) relatively price elastic.B) perfectly price inelastic.C) relatively price inelastic.D) perfectly price elastic.E) unit elastic.Ans: D10. f a good is in fixed supply, then the incidence of a taxA) falls entirely on the consumers.B) falls mostly on the producers and partly on consumers.C) falls entirely on the producers.D) depends on the elasticity of demand.E) none of the above.Ans: C11. Refer to the Figure 4-13. What is the elasticity of the demand curve DD between pointsA and B?A) 3.67B) 1.8C) 1.0D) 0.56E) None of the aboveAns: A12. Refer to Figure 4-13. What is the elasticity of the demand curve DD between points B and C?A) 3.33B) 1.8C) 1.0D) 0.56E) None of the aboveAns: B13. Refer to Figure 4-13. What is the elasticity of the demand curve DD between points C and D?A) 3.33B) 1.8C) 1.0D) 0.56E) None of the aboveAns: C14. If at a price of $8, quantity bought will be 3300 per day, and at $12, quantity bought will be 2700 per day, then the price elasticity of demand is approximately:A) 0.4B) 0.5C) 0.7D) 2.0E) 2.5Ans: B15. Given a relatively, but not perfectly, price elastic supply curve, an increase in demand will certainly:A) raise price but leave quantity sold unchanged.B) raise price and increase quantity sold.C) lower price, since supply cannot increase except through the inducement of higher price.D) reduce quantity sold but leave price unchanged.E) do none of the above, since "increase in demand" refers to a movement along a given demand curve.Ans: BCHAPTER 51.In the figure below, the drop in consumer surplus resulting from an increase in pricefrom 5 to 10 is given by the area:A) FGHB) CEHC) FGDCD) CEGFE) DEGAns: D2. A change in which of the following should not affect the demand for hot coffee?A) The price of coffee.B) The price of tea.C) Consumer incomes.D) The weather.E) All the above affect the demand for coffee.Ans: A3. The paradox of value notes that:A) there is no rational explanation why people should set a high value on objects such as diamonds, which have little real usefulness.B) the price obtained from selling any commodity may bear little relationship to the cost of producing it.C) supply and demand curves do very little to explain how value (or price) is determined.D) no one consumer has any control over the price (or value) of a commodity, but consumers collectively do have such control.E) there is no consistent relationship between the total utility obtained from any commodity and the price charged for it.Ans: E4. To be in equilibrium (i.e., to maximize satisfaction), the consumer must:A) purchase no inferior goods.B) equalize the marginal utilities of the last unit purchased of every commodity.C) be sure that the prices of all commodities purchased are proportional to their total utilities.D) be sure that the price of each good is equal to the marginal utility of money.E) allocate income so that the last penny spent on any good generates the same increment of utility as the last penny spent on any other good.Ans: E5. If I get 10 units of total utility (TU) from 2 oranges, 14 of TU from 3 oranges, and 17 of TU from 4 oranges, I obey the law of diminishing marginal utility because:A) MU falls as consumption increases.B) TU increases as consumption increases.C) TU > MU.D) MU > TU.E) MU = TU.Ans: A6. For a normal good, the substitution effect of a price increase:A) pushes the quantity demanded down along with the income effect.B) pushes the quantity demanded down enough that the income effect cannot push demand higher.C) pushes the quantity demanded up, but not enough to dominate an income effect that ultimately pushes demand down.D) has an effect on the quantity demanded that is identical to the income effect.E) pushes the quantity demanded up along with the income effect.Ans: A7. Table 5-1Total UtilityUnits 1 2 3 4 5Good X 120 216 288 336 360Good Y 90 160 220 270 305Refer to Table 5-1. If good X costs $6 per unit and good Y costs $5 per unit, at what quantities of X and Y is utility maximized if the budget is $31?A) X = 2, Y = 3B) X = 4, Y = 5C) X = 3, Y = 4D) X = 3, Y = 3E) None of the aboveAns: D8. Refer to Table 5-1. Suppose now X costs $8 per unit and Y costs $5 per unit. For what amounts of X and Y are (marginal utility)/price equal?A) X = 3, Y = 4B) X = 4, Y = 5C) X = 2, Y = 3D) X = 1, Y = 2E) None of the aboveAns: C9. Refer to Figure 5-6. What is total market demand at P = 5?A) 0B) 5C) 10D) 15E) None of the aboveAns: B10. Suppose Mary is currently spending all her income on cookies and milk. The marginal utility of cookies is 15, the price of cookies is $5, the marginal utility of milk is 10, and the price of milk is $1. To increase her total utility, Mary should:A) buy more cookies and less milk.B) buy more milk and fewer cookies.C) buy more of both goods.D) buy less of both goods.E) do nothing. She is currently maximizing utility with her limited budget.Ans: B11. The income effect describes:A) the percentage change in consumption of a good given some percentage change in the price of another good.B) the fact that when the price of a good falls, consumers will substitute it into their market baskets in place of relatively more expensive goods.C) the fact that when the price of a good falls, consumers will have more purchasing power with the same nominal income.D) the effect of a change in consumer income on the quantity of a good demanded.E) an upward-sloping demand curve.Ans: C12. Assume household income is $30, the price of X is $6 and the price of Y is $3. Refer to table 5-2. What quantities of X and Y will be purchased by the household?Marginal UtilityUnits 1 2 3 4 5 6 7Good X 72 48 30 24 18 12 6Good Y 60 42 30 15 10 5 2A) X = 2, Y = 6B) X = 3, Y = 4C) X = 3, Y = 3D) X = 4, Y = 2E) None of the aboveAns: B13. A good which sells for a higher price than one which is more important for welfare reflects the concept of:A) complementarity in demand.B) substitution.C) marginal or total utility.D) the paradox of value.E) law of diminishing marginal utility.Ans: D14. At my equilibrium demand choices for goods 1 and 2:A) MU1 = MU2B) MU1/Q1 = MU2/Q2C) MU1/P1 = MU2/P2D) P1 = P2E) none of the above.Ans: C15. The rule for rational budget allocation by a consumer is that the marginal utility of each good:A) purchased divided by its price must be equal.B) purchased multiplied by its price must be equal.C) must be zero.D) must be infinite.E) none of the above.Ans: ACHAPTER 61. The marginal product of labor is the:A) output which it could produce unaided by machinery or other factors of production.B) extra revenue which a firm will get by selling the output of one additional worker.C) amount of extra output that is produced when one extra worker is added to a fixed amount of other factors.D) amount of extra output that is produced when one worker is added and other factors of production are increased proportionately.E) none of the above.Ans: CTotal Product withVarious Input CombinationsLandLabor 10 15 200 0 0 01 20 20.67 20.52 38 39.33 40.03 54 57.00 58.54 68 72.67 76.05 80 87.33 92.56 90 102.00 108.02. Suppose that production is defined by the function recorded in the table above. The marginal product of the 4th unit of labor, given 20 units of land, is equal to:A) 15.5B) 17.5C) 19.0D) 1.5E) none of the aboveAns: B3. Suppose that production is defined by the function recorded in the table above. Given 6 units of labor, the marginal product of increasing land from 10 units to 15 units is equal to:A) 15.B) 12.C) 3.D) 2.4.E) none of the above.Ans: D4. Suppose that production were represented by the production function displayed in the table above. You would conclude that:A) land displayed diminishing returns.B) labor displayed diminishing returns.C) production displayed constant returns to scale.D) all of the above were true.E) none of the above were true.Ans: D5. The law of diminishing returns is expressed in terms of an eventual decline in the:A) total product of an input.B) average product of an input.C) marginal product of an input.D) returns to scale of an input.E) broadest general productivity measures only.Ans: C6. The short run is a period of time so short that:A) output cannot be varied.B) at least one input is fixed.C) all inputs are fixed.D) all inputs are variable.E) none of the above.Ans: B7. For the law of diminishing returns to hold, the missing blank in this table must be:Quantity Totalof Labor Product0 01 -2 8A) 4.B) 2.C) more than 4.D) less than 4.E) 0.Ans: C8. Suppose that you have drawn a total product curve for labor given a specific technology. Now let some sort of technological change increase the productivity of labor. A new total product curve would have to be drawn:A) above the old with a steeper slope for any level of employment greater than zero.B) above the old with a flatter slope for any level of employment greater than zero.C) below the old with a steeper slope for any level of employment greater than zero.D) below the old with a flatter slope for any level of employment greater than zero.E) directly over the old curve signifying no change in the total product graph; only the marginal product graph would change.Ans: A9. Suppose that production of a particular good requires two inputs, labor (L) and capital (K). If K is fixed, which of the panels in Figure 6-2 possibly represent(s) decreasing marginal productivity of labor?A) Panel a.B) Panel b.C) Panel c.D) All of the above.E) None of the above.Ans: B10. Suppose that two inputs, K and L, are variable and increase at the same rate. Which one of the panels in Figure 6-2 represents Increasing Return to Scale (IRS)?A) Panel a.C) Panel c.D) Panel d.E) None of the above.Ans: C11. The production function is a technical law which:A) relates dollar inputs to dollar outputs.B) indicates the best way to combine outputs in the marketplace.C) indicates the best level of output to produce.D) describes a relationship between inputs and output in a production process.E) relates marginal products to factor prices.Ans: D12. Average product of labor measures:A) the addition to total output when an additional worker is hired.B) total product divided by total cost.C) the marginal product of the last worker multiplied by the wage rate.D) total product divided by the wage rate.E) total product divided by the quantity of labor.Ans: E13. The employment of which of the following inputs might be adjusted in the short run?A) Physical capital.B) Number of hours worked by labor.C) Units of energy required per unit output.D) Units of material required per unit output.E) None of the above.Ans: B14. When will the average product of labor increase?A) New technology improves the quality of capital used by labor.B) Marginal product of labor is increasing.C) Additional workers are hired.D) Both A and C.E) Both A and B.Ans: E15. As businesses grow, their need for capital typically tends to:。