哈伯德英文版微观经济学练习c09

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哈伯德英文版微观经济学练习c05

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.。

微观经济学英文版9-14章自测题及答案

微观经济学英⽂版9-14章⾃测题及答案第九章⾃测题：1. If the world price of a product is higher than a country’s domestic price we know that countrya. should import that product.b. should no longer produce that product.c. has a comparative advantage in that product.d. could benefit by imposing a tariff on that product.2. Which of the following is NOT a benefit of trade?a. an increased variety of goodsb. lower costs through economies of scalec. increased competitiond. an ability to control domestic and world prices3. When a country allows trade and becomes an exporter of a good, domestic producersa. gain and domestic consumers lose.b. lose and domestic consumers gain.c. and domestic consumers both gain.d. and domestic consumers both lose.4. The world price of yo-yo’s is $4.00 each. The pre-trade price of yo-yo’s in Taiwan is $3.50 each. If Taiwan allows trade in yo-yo’s we know that Taiwan willa. import yo-yo’s and the price in Taiwan will be $4.00 each.b. import yo-yo’s and the price in Taiwan will be $3.50 each.c. export yo-yo’s and the price in Taiwan will be $4.00 each.d. export yo-yo’s and the price in Taiwan will be $3.50 each.5. When a country moves from a free trade position and imposes a tariff on imports, this causesa. a decrease in total surplus in the market.b. a decrease in producer surplus in the market.c. an increase in consumer surplus in the market.d. a decrease in revenue to the government.6. A tariff and an import quota will botha. increase the quantity of imports and raise domestic price.b. increase the quantity of imports and lower domestic price.c. reduce the quantity of imports and raise domestic price.d. reduce the quantity of imports and lower domestic price.7. The major difference between tariffs and import quotas is thata. tariffs create deadweight losses, but import quotas do not.b. tariffs help domestic consumers, and import quotas help domestic producers.c. tariffs raise revenue for the government, but import quotas create a surplus for import license holders.d. All of the above are correct.8. According to the graph, consumer surplusin this market before trade would bea. A.b. B + C.c. A + B + D.d. C.9. According to the graph, consumer surplusin this market after trade would bea. A.b. C + B.c. A + B + D.d. B + C + D.10. According to the graph, the change in total surplus in this market because of trade isa. Ab.Bc. Cd. D参考答案：1.c2.d3.a4.c5.a6.c7.c8.a9.c 10.d第⼗章⾃测题：1. An externality is the impact ofa. society’s decisions on the well-being of society.b. a person’s actions on that person’s well-being.c. one person’s actions on the well-being of a bystander.d. society’s decisions on the well-being of one person in the society2. If education produces positive externalities we would expecta. government to tax education.b. government to subsidize education.c. people to realize the benefits and therefore cause demand for education to increase.d. colleges to relax admission requirements.3. When a negative externality exists in a market the cost to producersa. is greater than the cost to society.b. will be the same as the cost to society.c. will be less than the cost to society.d. and society will be different regardless of whether an externality is present.4. Internalizing an externality refers to makinga. buyers and sellers take into account the external effects of their actions.b. certain that all market transaction benefits go to only buyers and sellers.c. certain government does not disrupt the internal workings of the market.d. buyers pay the full price for the products they purchase.5. Technology spillover is one type ofa. negative externality.b. positive externality.c. subsidy.d. producer surplus.6. According to the Coase theorem, private markets will solve externality problems and allocate resources efficiently as long asa. private parties can bargain without cost.b. government assigns property rights to the harmed party.c. the externalities that are present are positive and not negative.d. businesses determine an appropriate level of production.7. Pigovian taxes are typically advocated to correct for the effects ofa. positive externalities.b. negative externalities.c. regulatory burden.d. All of the above are correct.8. If the government were to limit the release of air-pollution produced by a steel mill to 10,000 units, this policy would be considered aa. regulation.b. Pigovian tax.c. subsidy.d. market-based policy.9. When one firm sells its pollution permit to another firm, which of the following does NOT occur?a. Both firms benefit.b. The total amount of pollution remains the same.c. Social welfare is enhanced.d. Over time, pollution will be eliminated.10. Which of the following policies is government most inclined to use when faced with a positive externality?a. taxationb. permitsc. subsidiesd. usage fees参考答案：1.c2.b3.c4.a5.b6.a7.b8.a9.d 10.c第⼗⼀章⾃测题1. Goods that are excludable include botha. natural monopolies and public goods.b. public goods and common resources.c. common resources and private goods.d. private goods and natural monopolies.2. Which of the following would be considered a private good?a. national defenseb. a public beachc. local cable television serviced. a bottle of natural mineral water3. The government provides public goods becausea. private markets are incapable of producing public goods.b. free-riders make it difficult for private markets to supply the socially optimal quantity.c. markets are always better off with some government oversight.d. external benefits will occur to private producers.4. The difference between technological knowledge and general knowledge is thata. general knowledge creation is usually more profitable for the creator.b. technological knowledge is excludable and general knowledge is not.c. general knowledge is excludable and technological knowledge is not.d. general knowledge is rival and technological knowledge is not.5. A lighthouse is typically considered a good example of a public good becausea. the owner of the lighthouse is able to exclude beneficiaries from enjoying the lighthouse.b. there is rarely another lighthouse nearby to provide competition.c. a nearby port authority cannot avoid paying fees to the lighthouse owner.d. all passing ships are able to enjoy the benefits of the lighthouse without paying.6. The Tragedy of the Commons results when a good isa. rival and not excludable.b. excludable and not rival.c. both rival and excludable.d. neither rival nor excludable.7. If the use of a common resource is not regulated,a. it cannot be used by anyone.b. the economy will end up with too much of a good thing.c. it becomes a private good.d. it will be overused.8. Government may be able to solve the problem of overuse of a common resource by doing each of the following EXCEPTa. regulating the use or consumption of the common resource.b. taxing the use or consumption of the common resource.c. selling the common resource to a private entity.d. allowing individuals to voluntarily reduce their use of the resource.9. Why do elephants face the threat of extinction while cows do not?a. Cattle are a valuable source of income for many people and elephants have no market value.b. There is a high demand for products that come only from the cow.c. There are still lots of cattle that roam free, while most elephants are in zoos.d. Cattle are owned by ranchers, while elephants are owned by no one.10. Excessive fishing occurs becausea. each individual fisherman has little incentive to maintain the species for the next year.b. fishermen rely on government managers to worry about fish populations.c. fishermen are concerned about the population dynamics of fish biomass, not current harvest rates.d. fishermen have other marketable skills and do not fear exploitation of fish reserves.参考答案：1.d2.d3.b4.b5.d6.a7.d8.d9.d 10.a第⼗⼆章⾃测题1. Which of the following is an implicit cost?(i) the owner of a firm forgoing an opportunity to earn a large salary working for a Wall Street brokerage firm(ii) interest paid on th e firm’s debt(iii) rent paid by the firm to lease office spacea. (ii) and (iii)b. (i) and (iii)c. (i) onlyd. All of the above are correct.2. John owns a shoe-shine business. His accountant most likely includes which of the following costs on his financial statements?a. wages John could earn washing windowsb. dividends John’s money was earning in the stock market before John sold his stock and bought a shoe-shine boothc. the cost of shoe polishd. All of the above are correct.3. Economic profita. will never exceed accounting profit.b. is most often equal to accounting profit.c. is always at least as large as accounting profit.d. is a less complete measure of profitability than accounting profit.4. Zach took $500,000 out of the bank and used it to start his new cookie business. The bankaccount pays 4 percent interest per year. During the first year of his business, Zach sold 12,000 boxes of cookies for $3 per box. Also, during the first year, the cookie business incurred costs that required outl ays of money amounting to$14,000.Zach’s economic profit for the year wasa. $–478,000.b. $–56,000.c. $2,000.d. $22,000.5. The marginal product of labor is equal to thea. incremental cost associated with a one unit increase in labor.b. incremental profit associated with a one unit increase in labor.c. increase in labor necessary to generate a one unit increase in output.d. increase in output obtained from a one unit increase in labor.6. Suppose Jan is starting up a small lemonade stand business. Va riable costs for Jan’s lemonade stand would include the cost ofa. building the lemonade stand.b. hiring an artist to design a logo for her sign.c. lemonade mix.d. All of the above are correct.7. Variable cost divided by quantity produced isa. average total cost.b. marginal cost.c. profit.d. None of the above are correct.8. The average fixed cost curvea. always declines with increased levels of output.b. always rises with increased levels of output.c. declines as long as it is above marginal cost.d. declines as long as it is below marginal cost.9. The efficient scale of the firm is the quantity of output thata. maximizes marginal product.b. maximizes profit.c. minimizes average total cost.d. minimizes average variable cost.10. Average total cost is increasing whenevera. total cost is increasing.b. marginal cost is increasing.c. marginal cost is less than average total cost.d. marginal cost is greater than average total cost.11. Which of the following expressions is correct?a. marginal cost = (change in quantity of output)/(change in total cost).b. average total cost = total cost/quantity of output.c. total cost = variable cost + marginal cost.d. All of the above are correct.12. Which of the following must always be true as the quantity of output increases?a. Marginal cost must rise.b. Average total cost must rise.c. Average variable cost must rise.d. Average fixed cost must fall.13. In the long run,a. inputs that were fixed in the short run remain fixed.b. inputs that were fixed in the short run become variable.c. inputs that were variable in the short run become fixed.d. variable inputs are rarely used.14. The length of the short runa. is different for different types of firms.b. can never exceed 3 years.c. can never exceed 1 year.d. is always less than 6 months.15. Economies of scale occur whena. long-run average total costs rise as output increases.b. long-run average total costs fall as output increases.c. average fixed costs are falling.d. average fixed costs are constant.16. Long-run average total cost curves are often U-shapeda. for the same reasons that average total cost curves are often U-shaped.b. because of constant returns to scale.c. because of increasing coordination problems at low levels of production and increasing specialization of workers at high levels of production.d. because of increasing specialization of workers at low levels of production and increasing coordination problems at high levels of production.参考答案：1.c2.c3.a4.c5.d6.c7.d8.a9.c 10.d 11.b 12.d 13.b 14.a 15.b 16.d第⼗三章⾃测题：1. For a firm in a perfectly competitive market, the price of the good is alwaysa. equal to marginal revenue.b. equal to total revenue.c. greater than average revenue.d. All of the above are correct.2. Which of the following is NOT a characteristic of a perfectly competitive market?a. Firms are price takers.b. Firms have difficulty entering the market.c. There are many sellers in the market.d. Goods offered for sale are largely the same.3. When a competitive firm triples the amount of output it sells,a. its total revenue triples.b. its average revenue triples.c. its marginal revenue triples.d. All of the above are correct.4. When a profit-maximizing firm in a competitive market has zero economic profit, accounting profita. is negative (accounting losses).b. is positive.c. is also zero.d. could be positive, negative or zero.5. For a competitive firm,a. Total revenue = Average revenue.b. Total revenue = Marginal revenue.c. Total cost = Marginal revenue.d. Average revenue = Marginal revenue.6. If marginal cost exceeds marginal revenue, the firma. is most likely to be at a profit-maximizing level of output.b. should increase the level of production to maximize its profit.c. must be experiencing losses.d. may still be earning a profit.7. When price is greater than marginal cost for a firm in a competitive market,a. marginal cost must be falling.b. the firm must be minimizing its losses.c. there are opportunities to increase profit by increasing production.d. the firm should decrease output to maximize profit.8. When fixed costs are ignored because they are irrelevant to a business’s production decision, they are calleda. explicit costs.b. implicit costs.c. sunk costs.d. opportunity costs.9. When a firm makes a short-run decision not to produce anything during a specified period of time because of current market conditions, the firm is said toa. shut down.b. exit.c. withdraw.d. leave the industry.10. Profit-maximizing firms enter a competitive market when, for existing firms in that market,a. total revenue exceeds fixed costs.b. total revenue exceeds total variable costs.c. average total cost exceeds average revenue.d. price exceeds average total cost.11. A firm’s short-run supply curve is part of which of the following curves?a. marginal revenueb. average variable costc. average total costd. marginal cost12. Suppose you bought a ticket to a football game for $30, and that you place a $35 value on seeing the game. If you lose the ticket, then what is the maximum price you should pay for another ticket?a. $30b. $35c. $60d. $6513. When new firms have an incentive to enter a competitive market, their entry willa. increase the price of the product.b. drive down profits of existing firms in the market.c. shift the market supply curve to the left.d. All of the above are correct.14. In a perfectly competitive market, the process of entry and exit will end when, for firms in the market,a. price is equal to average variable cost.b. marginal revenue is equal to average variable cost.c. economic profits are zero.d. All of the above are correct.15. In a competitive market that is characterized by free entry and exit,a. all firms will operate at efficient scale in the short run.b. all firms will operate at efficient scale in the long run.c. the price of the product will differ across firms.d. the number of sellers in the market will steadily decrease over time.16. The assumption of a fixed number of firms is appropriate for analysis ofa. the short run, but not the long run.b. the long run, but not the short run.c. both the short run and the long run.d. neither the short run nor the long run.参考答案：1.a2.b3.a4.b5.d6.d7.c8.c9.a 10.d 11.d 12.b 13.b 14.c 15.b 16.a第⼗四章⾃测题：1. Which of the following statements is correct?a. A competitive firm is a price maker and a monopoly is a price taker.b. A competitive firm is a price taker and a monopoly is a price maker.c. Both competitive firms and monopolies are price takers.d. Both competitive firms and monopolies are price makers.2. Which of the following is an example of a barrier to entry?(i) A key resource is owned by a single firm.(ii) The costs of production make a single producer more efficient than a large number of producers. (iii) The government has given the existing monopoly the exclusive right to produce the good.a. (i) and (ii)b. (ii) and (iii)c. (i) onlyd. All of the above are correct.3. The defining characteristic of a natural monopoly isa. constant marginal cost over the relevant range of output.b. economies of scale over the relevant range of output.c. constant returns to scale over the relevant range of output.d. diseconomies of scale over the relevant range of output.4. Patent and copyright laws are major sources ofa. natural monopolies.b. government-created monopolies.c. resource monopolies.d. None of the above are correct.5. The De Beers diamond monopoly is a classic example of a monopoly thata. is government-created.b. arises from the ownership of a key resource.c. results in very little advertising of the product that the monopolist produces.d. was broken up by the government a long time ago.6. In order to sell more of its product, a monopolist musta. sell to the government.b. sell in international markets.c. lower its price.d. use its market power to force up the price of complementary products.7. For a profit-maximizing monopolist,a. P＞MR = MC.b. P = MR = MC.c. P ＞MR ＞MC.d. MR ＜MC ＜P.8. For a monopoly, the supply curve is a portion of itsa. marginal revenue curve.b. marginal cost curve.c. average total cost curve.d. none of the above; a monopoly does not have a supply curve.9. What is the monopolist’s profit under the following conditions? The profit-maximizing price charged for goods produced is $16. The intersection of the marginal revenue and marginal cost curves occurs where output is 10 units and marginal cost is $8. Average total cost for 10 units of output is $6.a. $20b. $80c. $100d. $16010. Antitrust laws allow the government toa. prevent mergers.b. break up companies.c. promote competition.d. All of the above are correct.参考答案：1.b2.d3.b4.b5.b6.c7.a8.d9.c 10.d。

哈伯德-微观经济学 Charpter9

1. When total utility is maximized, which of the following is true concerning marginal utility?A. Marginal utility is minimized.B. Marginal utility is also maximized.C. Marginal utility equals zero.D. Marginal utility is equal to total utility.2. Which of the following statements concerning total utility and marginal utility is correct?A. Total utility is the sum of marginal utilities.B. Marginal utility is the sum of total utility.C. Marginal utility is maximized when total utility is zero.D. Marginal utility is usually larger than total utility. A. 34.B. 24.C. 22.D. 6.4. Refer to the figure below. Marginal utility is:A. Greater at points u and v than at points w and x.B. Greater at points w and x than at points u and v.C. Greatest at point y.D. The same at points u and v than at points w and x.5. What is a budget constraint?A. A limited amount of income available to consumers to spend on goods and services.B. The amount of money necessary to purchase a given combination of goods.C. An amount of income that yields equal marginal utility per dollar spent.D. The amount of income that must be spent on goods and services in order to maximize utilityfrom consumption.6. Refer to the formula below. In this case, the marginal utility per dollar spent on good X is lessthan the marginal utility per dollar spent on good Y. According to the rule of equal marginal utility per dollar spent, what can a consumerdo in order to increase total utility from consumption of goods X and Y?A. Increase the consumption of good X.B. Increase the consumption of good Y.C. Decrease the consumption of both goods.D. Increase the consumption of both goods.7. Suppose you have a fixed budget for two goods, X and Y. The price of good X is Px = $10 and the price of good Y is Py = $5. The marginal utility of X is MUx= 60 utils and the marginal utility of Y is MUy = 15 utils. Should the consumption of X and/or Y be higher, lower, or remain the same?A. Consumption of good X should decrease, and consumption of good Y should increase.B. The current combination of goods maximizes total utility. Consumption should remain thesame.C. Consumption of good X should increase, and consumption of good Y should decrease.3 4D. The consumption of goods X and Y should increase.8. Refer to the table below. As stated in the first row, the income of the consumer (I) equals $20. The price of good X (Px) equals $3.00 and the price of good Y (Py) equals $2.00. Total utilityutility subject to her budget constraint?A. 4 units of X and 4 units of Y.B. 6 units of X and 6 units of Y.C. 4 units of X and 3 units of Y.D. 6 units of X and 1 unit of Y.9. Fill in the blanks. The change in the quantity demanded of a good that results from______________________, holding all other factors constant, is known as the income effect .A. the tendency of people to be unwilling to sell something they ownB. the effect of a change in price on consumer purchasing powerC. a change in price making the good more or less expensive relative to other goodsD. an increase in the usefulness of a product as the number of consumers who use it increases10. How do the income and substitution effects work when the price of an inferior gooddecreases?A. The income effect causes an increase in the quantity demanded and the substitution effectcauses a decrease in the quantity demanded.B. Both the income effect and the substitution effect cause a decrease in the quantitydemanded of the good.C. The income effect causes a decrease in the quantity demanded and the substitution effectcauses an increase in the quantity demanded.D. Both the income effect and the substitution effect cause an increase in the quantitydemanded of the good.11. Refer to the figure below. The graph shows your weekly demand for pizza. How was thisdemand curve constructed?A. By computing your consumption of pizza when both the price of pizza and the number ofslices you consume per week remain constant.B. By computing your consumption of pizza when the price of pizza remains constant.C. By computing your optimal consumption of pizza at the various prices shown.D. By computing your consumption of pizza at various prices, regardless of utility gained.12. What are the characteristics of Giffen goods?A. Giffen goods are normal, not inferior goods.B. Giffen goods have downward-sloping demand curves.C. Giffen goods are goods for which the income effect prevails over the substitution effect whenprice changes.D. All of the above.13. What happens when network externalities are present?A. The usefulness of a product decreases as the number of products rises.B. The usefulness of telecommunications equipment rises.C. The usefulness of a product increases with the number of consumers who use it.D. The usefulness of networks diminishes with the number of consumers who enter them.14. What are the potential results of path dependence?A. Market failure.B. A loss of efficiency if the government chooses to intervene in these markets.C. A reduction in switching costs.D. All of the above.15. Which of the following is consistent with the general view of fairness by consumers?A. In order to part with their money, consumers need to receive something material in return.B. Making donations gives people more utility than if they had kept the money and spent it onthemselves.C. People leave tips but only if they anticipate returning to the same restaurant again.D. All of the above.16. In the ultimatum game, when the allocator and the recipient care about fairness, how is thedistribution of $20.00 affected?A. Allocators and recipients always end up sharing the $20.00 equally.B. Allocators receive everything and recipients nothing.C. Recipients usually reject offers of less than a 10 percent share.D. Allocators usually offer recipients a very small share.17. Refer to the figure below. When producers take fairness into account, which of the followingcould be true?A. Producers could charge $75 even though the result would be a shortage.B. Producers could raise prices gradually as demand strengthens.C. Producers could charge $145 in anticipation of stronger demand.D. The market will almost always settle in equilibrium at $125.17 2118. Fill in the blanks. Researchers have found that sometimes firms will give up some profits inthe ________ to keep their customers happy and increase their profits in the _________.A. sale of some goods; sale of other goodsB. short run; long runC. early stages of product development; mature marketD. long run; short run19. Which of the following mistakes do consumers commonly commit when making decisions?A. They are overly optimistic about their future behavior.B. They fail to ignore sunk costs.C. They take into account monetary costs but ignore nonmonetary opportunity costs.D. All of the above.20. Using advertising to convert myopic consumers into sophisticated consumers is:A. a popular way for firms to gain a competitive advantage over rival firmsB. a highly profitable strategyC. profitable only under certain conditionsD. not a profitable strategy21. Refer to the figure below. Which combinations are considered to be equivalentcombinations?A. All four points, or combinations shown are equivalent combinationsB. In this diagram, no combination is equivalent to another.C. The combinations u and v.D. The combinations w and t.22. Refer to the figure below. If the price of pizza is $5, how much is the monthly income of theconsumer?A. The monthly income of this consumer is not a single number but it is changing from onemonth to anotherB. $10C. $100D. $2022 2323. Refer to the figure below. Along this budget line, what do points B, C, and E have in common?A. At all three points total utility is maximized.B. Any of those combinations can be obtained with the same amount of income.C. At all three points the price of burgers is the same as the price of tacos.D. All of the above statements are correct.24. Refer to the figure below. When trying to maximize utility subject to a budget constraint, theconsumer would choose?A. Point e only.B. Either point e or point j only.C. Any one of points k, e, or j.D. Point k only.25. Refer to the figure below. Which of the following points corresponds to the affordable bundlethat yields the highest total utility?A. Point e.B. Point w.C. Point z.D. Point b.24 25。

微观经济学练习题与答案英文版

Chapter 01Thinking Like an Economist Multiple Choice Questions1. Economics is best defined as the study of:A. prices and quantities.B. inflation and interest rates.C. how people make choices under the conditions of scarcity and the results of those choices.D. wages and incomes.2. Economic questions always deal with:A. financial matters.B. political matters.C. insufficient resources.D. choice in the face of limited resources.3. The range of topics or issues that fit within the definition of economics is:A. limited to market activities, e.g., buying soap.B. limited to individuals and firms.C. extremely wide, requiring only the ideas of choice and scarcity.D. very limited.4. The central concern of economics is:A. poverty.B. scarcity.C. wealth accumulation.D. overconsumption.5. The scarcity principle indicates that:A. no matter how much one has, it is never enough.B. compared to 100 years ago, individuals have less time today.C. with limited resources, having more of "this" means having less of "that."D. because tradeoffs must be made, resources are therefore scarce.6. The logical implication of the scarcity principle is that:A. one will never be satisfied with what one has.B. as wealth increases, making choices becomes less necessary.C. as wealth decreases, making choices becomes less necessary.D. choices must be made.7. If all the world's resources were to magically increase a hundredfold, then:A. the scarcity principle would still govern behavior.B. economics would no longer be relevant.C. the scarcity principle would disappear.D. tradeoffs would become unnecessary.8. The principle of scarcity applies to:A. the poor exclusively.B. all consumers.C. all firms.D. everyone—consumers, firms, governments, and nations.9. At the very least, Joe Average and Bill Gates are both identically limited by:A. their wealth.B. the 24 hours that comprise a day.C. their knowledge.D. their influence.10. Forest is a mountain man living in complete isolation in Montana. He is completely self-sufficient through hunting, fishing, and farming. He has not been in the city to buy anything in five years. One can infer:A. the scarcity principle does not apply to Forest.B. Forest is not required to make choices.C. the scarcity principle still applies because more hunting means less fishing and farming.D. Forest is very satisfied.11. The scarcity principle applies to:A. all decisions.B. only market decisions, e.g., buying a car.C. only non-market decisions, e.g., watching a sunset.D. only the poor.12. Chris has a one-hour break between classes every Wednesday. Chris can either stay at the library and study or go to the gym and work out. The decision Chris must make is:A. not an economic problem because neither one costs money.B. not an economic problem because it's an hour that is wasted no matter what Chris does.C. an economic problem because the tuition Chris pays covers both the gym and the library.D. an economic problem because Chris has only one hour during which he can study or work out.13. Josh wants to go to the football game this weekend, but he has a paper due on Monday. It will take him the whole weekend to write the paper. Josh decided to stay home and work on the paper. According to the scarcity principle, the reason Josh didn't go to the game is that:A. Josh prefers schoolwork to football games.B. writing the paper is easier than going to the game.C. Josh doesn't have enough time for writing the paper and going to the game.D. it's too expensive to go to the game.14. Whether studying the size of the U.S. economy or the number of children a couple will choose to have, the unifying concept is that wants are:A. limited, resources are limited, and thus choices must be made.B. unlimited, resources are limited, and thus choices must be made.C. unlimited, resources are limited to some but not to others, and thus some people must make choices.D. unlimited, resources are limited, and thus government needs to do more.15. The cost-benefit principle indicates that an action should be taken:A. if the total benefits exceed the total costs.B. if the average benefits exceed the average costs.C. if the net benefit (benefit minus cost) is zero.D. if the extra benefit is greater than or equal to the extra costs.16. When a person decides to pursue an activity as long as the extra benefits are at least equal to the extra costs, that person is:A. violating the cost-benefit principle.B. following the scarcity principle.C. following the cost-benefit principle.D. pursuing the activity too long.17. Choosing to study for an exam until the extra benefit (improved score) equals the extra cost (mental fatigue) is:A. not rational.B. an application of the cost-benefit principle.C. an application of the scarcity principle.D. the relevant opportunity cost.18. The scarcity principle tells us that __________, and the cost-benefit principle tells us __________.A. choices must be made; how to make the choicesB. choices must be made; that the costs can never outweigh the benefits of the choicesC. rare goods are expensive; that the costs should outweigh the benefits of the choicesD. rare goods are expensive; that the costs can never outweigh the benefits of the choices19. According to the cost-benefit principle:A. the lowest cost activity usually gives the lowest benefit.B. a person should always choose the activity with the lowest cost.C. a person should always choose the activity with the greatest benefit.D. the extra costs and benefits of an activity are more important considerations than the total costs and benefits.20. A rational person is one who:A. is reasonable.B. makes choices that are easily understood.C. possesses well-defined goals and seeks to achieve them.D. is highly cynical.21. The seventh glass of soda that Tim consumes will produce an extra benefit of 10 cents and has an extra cost of zero (Tim is eating at the cafeteria). The cost-benefit principle predicts that Tim will:A. realize he has had too much soda to drink and go home.B. drink the seventh glass and continue until the marginal benefit of drinking another glass of soda is zero.C. volunteer to empty out the fountain.D. not drink the seventh glass.22. Janie must either mow the lawn or wash clothes, earning her a benefit of $30 or $45, respectively. She dislikes both equally and they both take the same amount of time. Janie will therefore choose to _________ because the economic surplus is ________.A. mow the lawn; greaterB. wash clothes; greaterC. mow the lawn; smallerD. wash clothes; smaller23. Dean decided to play golf rather than prepare for tomorrow's exam in economics. One can infer that:A. Dean has made an irrational choice.B. Dean is doing poorly in his economics class.C. the economic surplus from playing golf exceeded the surplus from studying.D. the cost of studying was less than the cost of golfing.Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year.24. The opportunity cost of attending Elite U is:A. $50,000B. $10,000C. $20,000D. $15,00025. The opportunity cost of attending State College is:A. $30,000B. $20,000C. $15,000D. $10,00026. Larry maximizes his surplus by attending:A. Elite U, because $60,000 is greater than the benefit at the other schools.B. State College, because the difference between the benefit and cost is greatest there.C. NoName U, because Larry has a full scholarship there.D. Elite U, because the opportunity costs of attending Elite U are the lowest.27. Larry has decided to go to Elite U. Assuming that all of the values described are correct, for Larry to decide on Elite U, he must have:A. calculated his surplus from each choice and picked the one with the highest surplus.B. underestimated the benefits of attending NoName.C. miscalculated the surplus of attending Elite U.D. determined the opportunity cost of each choice and picked the one with the lowest opportunity cost.28. Jen spends her afternoon at the beach, paying $1 to rent a beach umbrella and $11 for food and drinks rather than spending an equal amount of money to go to a movie. The opportunity cost of going to the beach is:A. the $12 she spent on the umbrella, food and drinks.B. only $1 because she would have spent the money on food and drinks whether or not she went to the beach.C. the movie she missed seeing.D. the movie she missed seeing plus the $12 she spent on the umbrella, food and drinks.29. Relative to a person who earns minimum wage, a person who earns $30 per hour has:A. a lower opportunity cost of working longer hours.B. a higher opportunity cost of taking a day off.C. a lower opportunity cost of driving farther to work.D. the same opportunity cost of spending time on leisure activities.30. The opportunity cost of an activity is the value of:A. an alternative forgone.B. the next-best alternative forgone.C. the least-best alternative forgone.D. the difference between the chosen activity and the next-best alternative forgone.31. Amy is thinking about going to the movies tonight. A ticket costs $7 and she will have to cancel her dog-sitting job that pays $30. The cost of seeing the movie is:A. $7.B. $30.C. $37.D. $37 minus the benefit of seeing the movie.32. Economic surplus is:A. the benefit gained by taking an action.B. the price paid to take an action.C. the difference between the benefit gained and the cost incurred of taking an action.D. the wage someone would have to earn in order to take an action.33. The Governor of your state has cut the budget for the University and increased spending on Medicaid. This is an example of:A. the pitfalls of considering average costs instead of marginal costs.B. poor normative economic decision making.C. poor positive economic decision making.D. choice in the face of limited resources.34. Sally earned $25,000 per year before she became a mother. After she became a mother, she told her employer that her opportunity cost of working is now $50,000, and so she is not willing to work for anything less. Her decision is based on:A. the high cost of raising a child.B. her desire to save for her child's college expenses.C. her increased value to her employer.D. the value she places on spending time with her child.35. Alex received a four-year scholarship to State U. that covered tuition and fees, room and board, and books and supplies. As a result:A. attending State U. for four years is costless for Alex.B. Alex has no incentive to work hard while at State U.C. the cost of attending State U. is the amount of money Alex could have earned working for four years.D. the cost of attending State U. is the sum of the benefits Alex would have had attending each of the four other schools to which Alex had been admitted.36. Suppose Mary is willing to pay up to $15,000 for a used Ford pick-up truck, but she finds one for $12,000. Her __________ is __________.A. benefit; $12,000B. cost; $15,000C. economic surplus; $3,000D. economic surplus; $12,00037. In general, rational decision making requires one to choose the actions that yield the:A. largest total benefits.B. smallest total costs.C. smallest net benefits.D. largest economic surpluses.38. Suppose the most you would be willing to pay for a plane ticket home is $250, but you buy one online for $175. The economic surplus of buying the online ticket is:A. $175.B. $250.C. $75.D. $0.39. The use of economic models, like the cost-benefit principle, means economists believe that:A. this is exactly how people choose between alternatives.B. this is a reasonable abstraction of how people choose between alternatives.C. those who explicitly make decisions this way are smarter.D. with enough education, all people will start to explicitly make decisions this way.40. Jenna decides to see a movie that costs $7 for the ticket and has an opportunity cost of $20. After the movie, she says to one of her friends that the movie was not worth it. Apparently:A. Jenna failed to apply the cost-benefit model to her decision.B. Jenna was not rational.C. Jenna overestimated the benefits of the movie.D. Jenna underestimated the benefits of the movie.41. Most of us make sensible decisions most of the time, because:A. we know the cost-benefit principle.B. subconsciously we are weighing costs and benefits.C. most people know about the scarcity principle.D. we conduct hypothetical mental auctions when we make decisions.42. Suppose a person makes a choice that seems inconsistent with the cost-benefit principle. Which of the following statements represents the most reasonable conclusion to draw?A. The person (explicitly or implicitly) over-estimated the benefits or under-estimated the costs or both.B. The cost-benefit principle is rarely true.C. The person does not grasp how decisions should be made.D. The person is simply irrational.43. Economic models are intended to:A. apply to all examples equally well.B. eliminate differences in the way people behave.C. generalize about patterns in decision-making.D. distinguish economics students from everyone else.44. Economic models claim to be:A. reasonable abstractions of how people make choices, highlighting the most important factors.B. exact replications of the decision-making process people use.C. interesting chalkboard exercises with little applicability to the real world.D. exceptionally accurate methods of predicting nearly all behavior of everyone.45. The cost-benefit model used by economists is:A. unrealistic because it is too detailed and specific to apply to a variety of situations.B. unrealistic because everyone can think of times when he or she violated the principle.C. useful because everyone follows it all of the time.D. useful because most people follow it most of the time.46. Barry owns a clothing store in the mall and has asked two economic consultants to develop models of consumer behavior that he can use to increase sales. Barry should choose the model that:A. does not include simplifying assumptions.B. is the most detailed and complex.C. assumes that consumers apply the cost-benefit principle.D. predicts that consumers will always prefer Barry's store to the competing stores.47. Economists use abstract models because:A. every economic situation is unique, so it is impossible to make generalizations.B. every economic situation is essentially the same, so specific details are unnecessary.C. they are useful for describing general patterns of behavior.D. computers have allowed economists to develop abstract models.48. Most people make some decisions based on intuition rather than calculation. This is:A. irrational, because intuition is often wrong.B. consistent with the economic model of decision-making, because calculating costs and benefits leads to decision-making pitfalls.C. consistent with the economic model because people intuitively compare the relative costs and benefits of the choices they face.D. inconsistent with the economic model, but rational because intuition takes into account non-financial considerations.49. Moe has a big exam tomorrow. He considered studying this evening, but decided to go out with Curly instead. Since Moe always chooses rationally, it must be true that: A. the opportunity cost of studying tonight is less than the value Moe gets from spending time with Curly.B. the opportunity cost of studying tonight is equal to the value Moe gets from spending time with Curly minus the cost of earning a low grade on the exam.C. Moe gets more benefit from spending time with Curly than from studying.D. Moe gets less benefit from spending time with Curly than from studying.50. If one fails to account for implicit costs in decision making, then applying thecost-benefit rule will be flawed because:A. the benefits will be overstated.B. the costs will be understated.C. the benefits will be understated.D. the costs will be overstated.Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfares are $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1400. Your only alternative use for your frequent-flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round-trip airfares are $450.51. If you do not use the frequent-flyer coupon to fly, should you go to Miami?A. Yes, your benefit is more than your cost.B. No, your benefit is less than your cost.C. Yes, your benefit is equal to your cost.D. No, because there are no benefits in the trip.52. What is the opportunity cost of using the coupon for the Miami trip?A. $100B. $450C. $500D. $55053. If you use the frequent-flyer coupon to fly to Atlanta, would you get any economic surplus by making the trip?A. No, there is a loss of $50.B. Yes, surplus of $350.C. Yes, surplus of $400.D. Yes, surplus of $100.54. If the Chicago-Atlanta round-trip air fare is $350, should you go to Miami?A. No, there is a loss of $50.B. No, there is a loss of $100.C. Yes, there is economic surplus of $50.D. Yes, there is economic surplus of $400.55. Pat earns $25,000 per year (after taxes), and Pat's spouse, Chris, earns $35,000 (after taxes). They have two pre-school children. Childcare for their children costs $12,000 per year. Pat has decided to stay home and take care of the children. Pat must:A. value spending time with the children by more than $25,000.B. value spending time with the children by more than $12,000.C. value spending time with the children by more than $13,000.D. value spending time with the children as much as does Chris.You paid $35 for a ticket (which is non-refundable) to see SPAM, a local rock band, in concert on Saturday. (Assume that you would not have been willing to pay any more than $35 for this concert.) Your boss called and she is looking for someone to cover a shift on Saturday at the same time as the concert. You will have to work 4 hours and she will pay you time and a half, which is $9/hr.56. Should you go to the concert instead of working Saturday?A. Yes, your benefit is more than your cost.B. No, your benefit is less than your cost.C. Yes, your benefit is equal to your cost.D. No, because there are no benefits in the concert.57. What is the opportunity cost of going to the concert?A. $1B. $9C. $35D. $3658. What is your opportunity cost, if you go to work on Saturday?A. $0B. $9C. $35D. $3659. Your economic surplus of going to work on Saturday is:A. $0B. $1C. $35D. $36Matt has decided to purchase his textbooks for the semester. His options are to purchase the books via the Internet with next day delivery to his home at a cost of $175, or to drive to campus tomorrow to buy the books at the university bookstore at a cost of $170. Last week he drove to campus to buy a concert ticket because they offered 25 percent off the regular price of $16.因为他们提供75折的正常价格16美元。

哈伯德英文版微观经济学练习c10

哈伯德英文版微观经济学练习c10Microeconomics - Testbank 1 (Hubbard/O'Brien)Chapter 10 Technology, Production, and Costs1) T he average total cost of production is the:A) e xtra cost required to produce one more unit.B) t otal cost of production.C) t otal cost of production divided by the level of output.D) t otal cost of production multiplied times the level of output.2) A mong the potential sources of an advance in technology for a producing firm is:A) b etter trained workers.B) m ore efficient physical capital.C) h igher skill level of managers.D) a ll of the above.3) T he short run is:A) o ne day.B) o ne week.C) s ix months.D) a s long it takes a particular firm to change its plant capacity.4) A factor of production that is not fixed in the short run is:A) p hysical capital.B) t echnology.C) l abor.D) l and.5) A characteristic of the long run is:A) t here are no fixed inputs.B) a ll inputs can be varied.C) p lant capacity can be increased or decreased.D) a ll of the above.6) E conomics cost of production differ from those in accounting in that:A) e conomics includes expenditures for hired resources while accounting does not.B) e conomics adds the opportunity cost of a firm using its own resources.C) a ccounting includes expenditures for hired resources while economics does not.D) a ccounting costs are always larger than economic costs.7) W hich of the following is an implicit cost of production?A) I nterest paid on a loan to a bank.B) W ages paid to labor plus the cost of carrying benefits for workers.C) T he utility bill paid to water, electricity, and natural gas companies.D) R ent that could have been earned on a building owned and used by the firm.8) I mplicit costs of production are also called:A) o verhead.B) v ariable costs.C) d irect costs.D) o pportunity costs.9) A factor of production that generally is fixed in the short run is:A) r aw materials.B) l abor.C) a building.D) w ater.10) T he relationship between different amounts of inputs and the resulting level of output is a:A) t otal cost schedule.B) p roduction possibilities frontier.C) p roduction function.D) p roduction quota.11) I f the firm is producing nothing in the short run, then:A) t otal costs are zero.B) v ariable costs are low but positive.C) m arginal costs are negative.D) f ixed costs are positive.12) A s a firm hires more labor in the short run, the:A) l evel of total product stays constant.B) o utput per worker rises.C) e xtra output of another worker may rise at first, but eventually must fall.D) c osts of production are increasing at a fixed rate per unit of output.Refer to Figure 10.1 for the questions below.Figure 10.113) I n figure 10.1, diminishing returns to labor set in after:A) L1.B) L2.C) L3.D) n one of the above.14) I n figure 10.1, short run output is maximized at:A) L1.B) L2.C) L3.D) n one of the above.15) I n figure 10.1, AP of labor declines after L2 because:A) M P of labor is below AP of labor.B) M P of labor is falling.C) M P of labor is negative.D) M P of labor is positive.16) I f four workers can produce 18 chairs a day and five can produce 20 chairs a day, themarginal product of the fifth worker is:A) four chairs.B) f ive chairs.C) t wo chairs.D) 38 chairs.17) T he short run marginal product of labor increasing at first and then falling is an example ofthe law of:A) d emand.B) s upply.C) d iminishing marginal utility.D) d iminishing returns.18) T he reason the marginal product of labor in the short run increases at first and then falls isbecause:A) a s more labor is hired, they are not as skilled as the first ones hired.B) t here are fewer opportunities for division of labor and specialization.C) t he management is inefficient.D) t he extra workers have busy work piled on them.19) I f 11 workers can produce a total of 54 units of a productand another worker has a marginalproduct of six, then the average product of 12 workers is:A) 60.B) 54.C) 48.D) 5.20) I f another worker adds nine units of output to a group of workers who had an averageproduct of seven units, then the average product of labor:A) w ill remain the same.B) w ill increase.C) w ill decrease.D) a nd what will happen to it can not be determined.21) I f average product is decreasing, we know that:A) t otal product is negative.B) m arginal product is negative.C) m arginal product is smaller than average product.D) m arginal product is at its positive.22) I f all we know is all workers' marginal product, then total and average product can be foundby:A) d ividing marginal costs by the number of workers.B) m ultiplying the average marginal product times the number of workers.C) s umming the marginal values to find the total and multiplying it times the number ofworkers to get the average.D) s umming the marginal values to find the total and dividing it by the number of workersto get the average.23) I f we know that marginal product is equal to average product, then:A) a verage product is at a maximum.B) t otal product is at a maximum.C) m arginal product is at a maximum.D) a verage product must be falling.24) M arginal cost is U-shaped because of the:A) l aw of demand.B) l aw of diminishing marginal utility.C) l aw of diminishing returns.D) l aw of increasing costs.25) A verage total cost is equal to:A) a verage fixed costs minus average variable costs.B) t otal costs divided by the level of output.C) m arginal costs plus variable costs.D) t otal costs divided by the number of workers.Refer to Figure 10.2 for the questions below.Figure 10.226) I n figure 10.2, the difference between average total costs and average variable costs is:A) a verage fixed costs.B) m arginal costs.C) f ixed costs.D) s unk costs.27) I n figure 10.2, average variable costs approach average total costs as output rises because:A) m arginal costs are above average variable costs.B) a verage fixed costs are falling.C) f ixed costs are falling.D) t otal costs are falling.28) I n the long run:A) a ll inputs in production are variable.B) t here are no fixed costs.C) t otal costs equal variable costs.D) a ll of these are correct.29) L ong run costs are U-shaped because:A) o f the law of demand.B) o f the law of diminishing returns.C) o f economies and diseconomies of scale.D) o f the law of supply.30) I f average total cost is $50 and average fixed cost is $15 when output is 20 units, then thefirm's total variable cost at that level of output is:A) $1,000.B) $700.C) $300.D) i mpossible to determine without additional information.31) I f average total cost is $50 and average fixed cost is $15 when output is 20 units, then thefirm's average variable cost at that level of output is:A) $45.B) $35.C) $30.D) i mpossible to determine without additional information.32) W hen the average total cost is $16, the level of total cost is $800, then the number of units thefirm is producing is:A) i mpossible to determined with the information given.B) 784.C) 12,800.D) 50.33) I f a firm doubles all its inputs in the long run and it finds its average cost of production hasdecreased, then it has:A) d iminishing returns.B) e conomies of scale.C) d iseconomies of scale.D) d eclining fixed costs.34) E conomies of scale exist because as a firm increases its size in the long run:A) t he firm can afford more sophisticated technology in production.B) l abor and management can specialize their activities more.C) a s a larger input buyer the firm can purchase inputs at a lower per unit cost.D) a ll of these.35) I n natural monopolies such as the generation of electricity, long-run average costs continue todecrease as the plant size gets larger, because:A) d iminishing returns are not present.B) d iseconomies of scale are very minor but economies of scale continue.C) s omeone must have made a mistake at lower levels of output.D) t here are no fixed costs.36) W hen a firm's long-run average cost curve is horizontal for a range of output, then in thatrange the firm has:A) i ncreasing returns to scale.B) c onstant returns to scale.C) d ecreasing returns to scale.D) c onstant average fixed costs.37) A n isoquant shows:A) t he combinations of two goods that yield the same total satisfaction.B) t he combinations of two inputs that yield the same total product.C) t he combinations of two inputs that cost the same total quantity of money.D) t he combination of two goods that cost the same amount of money.38) T he typical shape of isoquants is:A) c oncave towards the origin.B) c onvex towards the origin.C) s traight downsloping line.D) s traight upsloping line.39) A s a firm substitutes labor for capital, more labor is required to equal one less unit of capitalbecause:A) c apital is always more productive than labor.B) a s less capital is used, diminishing returns to labor become more pronounced.C) d iseconomies of scale.D) t he price of each input changes.40) A n isocost line shows:A) a ll the possible combinations of two inputs the firm can use.B) a ll the possible combinations of two inputs the firm can use that have the same total cost.C) a ll the possible combinations of two inputs the firm can use that have the same marginalcost.D) a ll the possible combinations of two inputs with constant returns to scale.41) T he position of the isocost line is determined by the:A) p rices of the two inputs.B) p roductivities of the two inputs.C) l evel of total cost.D) p rice of the product.42) O n an isoquant/isocost graph the least cost combination of producing a given output is:A) a ny point on the isoquant curve.B) a ny point on the isocost curve.C) t he tangency point between the isoquant curve and the isocost line.D) o nly on one of the axes of the graph.43) D ifferent economies might use different combinations of inputs like labor and capital toproduce the same goods because of:A) d ifferent technologies.B) d ifferences in the productivity of the inputs.C) d ifferences in the prices of the inputs.D) a ll of the above.44) I f labor is the horizontal axis input and physical capital is the vertical axis input, then at theleast costs output:A) t he marginal rate of technical substitution is equal to the wage rate divided by the costof capital.B) t he marginal rate of technical substitution is multiplied times the wage rate divided bythe cost of capital.C) t he marginal rate of technical substitution is divided by the wage rate multiplied timesthe cost of capital.D) t he marginal rate of technical substitution is equal to the amount of capital divided bythe amount of labor.45) I f the amount of labor being used has a marginal product of 12 units of output per worker at awage rate of $6 per worker and the current capital amount being used has a marginal product of 20 units per machine, then for this to be a least cost combination of inputs the cost of capital must be:A) $2.B) $10.C) $20.D) I mpossible to determine with the information given.。

哈伯德的经济学微观课后答案

哈伯德的经济学微观课后答案【篇一：哈伯德宏观中文答案】收入的增加将增加正常商品的需求，这也将增加正常品行业就业的需求。

在经济扩张期，不管怎么样都将减少对劣质品的需求以及劣质品生产行业的就业需求。

在经济衰退期间，消费者收入的下降将减少对正常品的需求，这也将减少在该行业就业需求，但劣质品的需求将增加，生产劣质品的工作需求也将增加。

4．联邦政府购买航空飞机，美国消费者购买法国葡萄酒，福特汽车公司购买新的机器工具都代表了最终产品的采购。

而面包店从小麦农场主那购买小麦代表的是一个中间品的采购。

因为前三种产品都是被它的最终使用者购买，不再从事生产其它产品和服务活动的。

而面包店购买的小麦是用于继续生产其它产品的。

6．不计入，因为本次房产的重新出售不会产生新的产品和服务，房地产经纪人帮助出售或购买的服务的价值计入2006年的gdp，因为他们在2006年里提供了新的服务。

8． a. 2006年实际gdp = (100 x $50) + (100 x $2) + (50 x $30) = $6,7002007年实际gdp = (100 x $50) + (120 x $2) + (65 x $30) = $7,190b.(7190—6700)/6700*100=7.3%10．附加值只包括中间产品的额外市场价值，而利润包括了附加值在内的所有产品价值。

12．艺术家所实现的附加值=800*10—5000=3000当地艺术商店实现的附加值=1000*10-800*10=200014． a gdp可能增加，c gdp可能减小，b 可能引起gdp缓慢增加，因为犯罪率的增加可能导致政府对执法的开支增加，以及私人对自己安全支出的增加。

但是犯罪率的增加代表着地下经济的生产水平提高，gdp也将减少。

16．这里的非正规经济活动指的是地下经济活动，这些活动是隐藏的并且不计入gdp中，它使得各国之间的生活水平比较更加困难，但是经济学家通常用一般人均实际国内生产总值来比较生活水准。

哈伯德英文版微观经济学练习c02

Microeconomics - Testbank 1 (Hubbard/O'Brien)Chapter 2 Trade-offs, Comparative Advantage, and the Market System1) S carcity:A) r equires tradeoffs.B) i s due to limited wants.C) i s due to unlimited resources.D) a ll of the above.2) A n example of a factor of production would be:A) a car produced by an auto manufacturer.B) a worker hired by an auto manufacturer.C) m oney borrowed by an auto manufacturer.D) a ll of the above.3) T he production possibilities frontier shows:A) t he various products that can be produced now and in the future.B) a ttainable combinations of two products that may be produced in a particular timeperiod with available resources.C) w hat an equitable distribution of products among citizens would be.D) w hat people want to have produced in a particular time period.4) T he attainable production points on a production possibility curve are:A) t he horizontal and vertical intercepts.B) t he points along the production possibilities frontier.C) t he points outside the area enclosed by the production possibilities frontier.D) t he points along and inside the production possibility frontier.5) T he unattainable points vis-a-vis a production possibilities frontier are:A) t he points within the production possibilities frontier.B) t he points along the production possibilities frontier.C) t he points of the horizontal and vertical intercepts.D) t he points outside the production possibilities frontier.Refer to Figure 2.1 for the questions below.Figure 2.16) I n figure 2.1, point A:A) i s technically efficient.B) i s unattainable with current resources.C) i s inefficient implying not all resources are being used.D) i s the equilibrium.7) I n figure 2.1, point B:A) i s technically efficient.B) i s unattainable with current resources.C) i s inefficient implying not all resources are being used.D) i s the equilibrium.8) I n figure 2.1, point C:A) i s technically efficient.B) i s unattainable with current resources.C) i s inefficient implying not all resources are being used.D) i s the equilibrium.9) O n a production possibilities frontier, a combination of output that is inside the frontier is:A) a llocatively efficient.B) p roductively efficientC) a llocatively inefficient.D) p roductively inefficient.10) A ssumed with a production possibilities frontier is that:A) o nly two products are produced.B) r esource supplies are fixed.C) t echnology is fixed.D) a ll of the above.1-5：ABBDD6-10：CDB-D11) T he term that means the highest valued alternative given up when a person chooses toengage in an activity is:A) a ccounting cost.B) d ollar cost.C) o pportunity cost.D) e xplicit cost.12) I f a firm can produce a combination of 60 units of X together with 80 units of Y if it produces70 units of X, the firm can only produce 60 units of Y, thus the opportunity cost to produce 10more units of X is:A) 20 units of Y.B) 10 units of X.C) t wo units of Y.D) o ne-half a unit of X.13) I ncreasing opportunity cost along a bowed out production possibilities frontier occursbecause:A) o f inefficient production.B) o f ineffective management by entrepreneurs.C) s ome factors of production are not equally suited to producing both goods or services.D) o f the scarcity of factors of production.14) T he slope or rate of change along a production possibilities frontier:A) h as no economic relevance or meaning.B) i s always constant.C) i s always varying.D) m easures the opportunity cost of producing one more unit of a good.15) A t full employment, an economy that wants to produce more war goods:A) m ust wait until resource supplies have increased.B) m ust increase the production of consumer goods.C) m ust cut back on the production of other goods.D) m ust be attempting the impossible.16) A production situation with constant opportunity cost would be graphed as :A) a negatively sloped curve bowed out from the origin.B) a positively sloped straight line.C) a negatively sloped curve bowed in toward the origin.D) a negatively sloped straight line.17) P roduction possibilities frontier model shows that:A) i f consumers decide to buy more of a product its price will increase.B) a market economy is more efficient in producing goods and services than is a centrallyplanned economy.C) e conomic growth can only be achieved by free market economies.D) i f all resources are fully and efficiently utilized, more output of good X can only beachieved by producing less of another good.18) I f a nation's production possibilities frontier moves outward, this represents:A) e conomic growth.B) r ising prices of the two goods on the production possibilities frontier model.C) a n impossible situation.D) a change in producing one good in favor of the other.19) E conomic growth represented is on a production possibilities frontier model by theproduction possibility frontier:A) s hifting outward.B) s hifting inward.C) b ecoming steeper.D) b ecoming flatter.20) W ithout an increase in the supplies of factors of production, how can a nation groweconomically?A) I t cannotB) T hrough technological advance which enables more output with the same resourcesuppliesC) B y lowering the price of factors of productionD) B y increasing the price of factors of production11-15：CACDC16-20：DDAAB21) P eople trade with each other because:A) b y specializing in one activity people can increase production.B) p eople who specialize must trade with others for what they want to consume.C) s pecialization by individual people implies trade by everyone.D) o f all of these reasons.22) Y ou have an absolute advantage whenever you:A) a re better educated than someone else.B) c an produce more of something than others with the same resources.C) p refer to do one particular activity.D) c an produce something at a lower opportunity cost than others.23) I f George can mow 10 lawns or cultivate 5 gardens a day while Jack can mow 6 lawns orcultivate 4 gardens a day, then:A) J ack has an absolute advantage in both lawn mowing and garden cultivating.B) G eorge has an absolute advantage in both lawn mowing and garden cultivating.C) J ack has an absolute advantage in lawn mowing.D) J ack has an absolute advantage in garden cultivating.24) I f George can mow 10 lawns or cultivate 5 gardens a day while Jack can mow 6 lawns orcultivate 4 gardens a day, then:A) J ack has a comparative advantage in garden cultivating.B) G eorge has an absolute advantage in both lawn mowing and garden cultivating.C) G eorge has a comparative advantage in lawn mowing.D) A ll of the above are correct.25) I f George can mow 10 lawns or cultivate 5 gardens a day while Jack can mow 6 lawns orcultivate 4 gardens a day, then Jack's opportunity cost of mowing a lawn is:A) h alf a garden cultivated.B) t wo lawns mowed.C) t wo-thirds of a garden cultivated.D) o ne and a half lawns mowed.26) C omparative advantage means:A) a producing unit can produce more of a good or service with the same amount ofresources than any other producing unit.B) a producing unit can produce a good or service at a lower opportunity cost than anyother producing unit.C) c ompared to anyone else, you are better at what you do.D) n one of the above.27) I ndividuals who have never been the best at doing anything:A) w ill never be able to earn a decent income.B) c an still have a comparative advantage in producing some good or service.C) c an only be employed at simple jobs.D) w ill have to be supported by the government.28) H ouseholds:A) h ave no influence on the circular flow in a market economy.B) p urchase resources in the factor market.C) s ell goods in the product market.D) s ell resources in the factor market.29) A mong the characteristics of the circular flow in a market economy is:A) f irms sell goods and services in the product market.B) h ouseholds spend earnings from resource sales on goods and services in the productmarket.C) f irms hire resources sold by households in the factor market.D) a ll of these are characteristic of the circular flow in a market economy.30) W hich of the following is correct about a simple circular flow model?A) P roducers are neither buyers nor sellers in the product market.B) H ouseholds are sellers in the product market.C) P roducers are buyers in the factors market.D) N one of these are correct.21-25：DBB-C26-30：BBDDC31) A n Inquiry into the Nature and Causes of the Wealth of Nations published in 1776 waswritten by?A) J ohn Maynard KeynesB) K arl MarxC) A lfred MarshallD) A dam Smith32) A dam Smith's behavioral assumption about humans was that:A) p eople typically act irrationally.B) p eople usually act in a rational, self-interested way.C) p eople are consistently greedy.D) p eople typically act randomly.33) S mith's invisible hand is the:A) g overnment's oversight to control the economy.B) p roperty ownership laws and the rule of the court system.C) i ndividuals acting in their own self-interest.D) r eal world laws of economics that are unseen.34) T he economic impact of Smith's invisible hand is:A) c haos in a market not controlled by the government.B) s ome people are able to take advantage of others and earn large incomes.C) t he market provides consumers with what they want.D) p roducers can secretly band together and decide what to produce.35) T he fundamental thing the government must do to facilitate the operation of a marketeconomy is:A) p roduce goods to provide for low income households.B) s et up and enforce private property rights.C) e nsure an equal distribution of income to all citizens.D) a ll of the above.36) P rivate property rights provide that:A) a n arrested individual has a right to a lawyer to represent them.B) t he government can redistribute income.C) t he government cannot put you in a prison without a trial by jury.D) a resource can used in production or sold by its legal owner.37) T he ultimate purpose of patents and copyrights is to:A) p rovide owners with large profit forever.B) p rotect firms from being taken advantage of by competing firms.C) p rotect domestic firms from foreign competition.D) e ncourage the expenditure of funds on research and development to create newproducts.38) A successful market economy requires well defined property rights and:A) b alanced supplies of all factors of production.B) a n independent court system and judges making impartial decisions on the basis of law.C) d etailed government regulations.D) a ll of the above.39) T he Great Depression of the 1930s with a large number of workers and factories unemployedwould be represented in production possibilities frontier graph by:A) a point inside the frontier.B) a point outside the frontier.C) a point on the frontier.D) a n intercept on either the vertical or horizontal axis.40) I f the best lawyer in town is also the best at operating a word processor, then this personshould:A) s plit their time evenly between being a lawyer and a word processor.B) s pecialize in being a lawyer because its opportunity cost is lower.C) f lip a coin, there is no clear choice between the two careers.D) s pecialize in being a work processor because it is a job that uses modern technology.31-35：DB-CB36-40:DDBAB。

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Microeconomics - Testbank 1 (Hubbard/O'Brien)Chapter 9 Consumer Choice and Behavioral Economics1) E conomists assume the goal of consumers is to:A) d o as little work as possible to survive.B) m ake themselves as well off as possible.C) e xpend all their income.D) c onsume as much as possible.2) M arginal utility is:A) t he total satisfaction received from consuming a good or service.B) t he average satisfaction received from consuming a good or service.C) t he extra satisfaction received from consuming one unit of a good or service.D) n one of these describes marginal utility.3) A s a consumer consumes more and more of a good or service in a particular time period,eventually marginal utility:A) r ises.B) i s constant.C) d eclines.D) f luctuates.4) I f a consumer receives 20 units of utility from consuming two units of a good and forconsuming three units this consumer receives 25 units of utility, the marginal utility ofconsuming the third unit is:A) 45 utility units.B) 25 utility units.C) 20 utility units.D) 5 utility units.5) I f a consumer receives 20 units of utility from consuming two units of a good and fromconsuming three units this consumer receives 25 units of utility, the marginal utility ofconsuming the second unit is:A) 25 utility units.B) 20 utility units.C) 5 utility units.D) u nknown as more information is needed to determine the answer.6) I f a consumer receives 22 units of marginal utility for consuming the first unit of a good, 20units from consuming the second, and 15 from the third, the total utility of consuming thethree units is:A) 57 utility units.B) 35 utility units.C) 15 utility units.D) u nknown as more information is needed to determine the answer.7) T otal utility:A) a lways increases as a person consumes more and more of a good.B) h as a constant rate of increase as a person consumes more and more of a good.C) i s equal to the sum of the marginal utilities of all units consumed.D) i s negative when marginal utility is declining.8) I f, as a person consumes more and more of a good, each additional unit adds less satisfactionthan the previous unit consumed, we are seeing the working of the law of:A) d emand.B) s upply.C) i ncreasing opportunity cost.D) d iminishing marginal utility.9) M arginal utility can be:A) n egative.B) z ero.C) p ositive.D) a ll of these.10) I f, when you consume another unit of a good, your marginal utility is zero, then:A) y ou want more of the good.B) y our total utility has peaked.C) y ou have not yet reached the point of diminishing marginal utility.D) y ou should consume less of this good.11) C onsumers have to make tradeoffs in deciding what to consume because:A) t hey can only consume so much each day.B) t here is not enough time to consume everything.C) t hey are limited by a budget constraint.D) t here is not enough of all goods produced.12) I f your total satisfaction increases when you consume another unit, your marginal utilitymust be:A) i ncreasing.B) d ecreasing.C) n egative.D) p ositive.13) I f you ate too many pieces of pie and got sick, then at least the last piece of pie:A) h ad constant marginal utility.B) h ad constant total utility.C) h ad negative marginal utility.D) h ad positive marginal utility.14) T otal utility typically increases at a decreasing rate as a consumer consumes more of onegood or service, so marginal utility must:A) r emains constant.B) i ncrease also.C) d ecrease.D) b e negative.15) S omething has utility for a consumer if it:A) i s scarce.B) h as a high price.C) i s something everyone else wants.D) g enerates enjoyment or satisfaction.16) W hen marginal utility is zero, total utility is:A) m aximized.B) d ecreasing.C) n egative.D) i ncreasing.17) C onsumers maximize total utility within their budget constraint by:A) b uying the cheapest goods they can find.B) b uying whatever they like the best.C) b uying the good with the largest marginal utility per dollar spent.D) b uying the same dollar amount of each good.18) I f a consumer always buys goods rationally, then:A) t he total utilities of the different goods consumed will be equal.B) t he average utilities of the different goods consumed will be equal.C) t he marginal utility per dollar spent on all goods will be equal.D) t he marginal utility of the different goods consumed will be equal.19) S uppose Joe is maximizing total utility within his budget constraint and the price of jeans is$25 and yielded 100 units of extra satisfaction. If the price of a shirt is $20, then the extra satisfaction received for the last shirt must be:A) 2000 units of utility.B) 500 units of utility.C) 100 units of utility.D) 80 units of utility.20) I f a consumer is maximizing total utility by buying goods X and Y, for a consumer to buymore of good X:A) t he consumer is maximizing so nothing can change the consumption of X.B) t he price of X has to fall.C) t he price of X has to rise.D) t he price of Y has to fall.21) M ost would prefer to drive a luxury car that has all the options, but more people buy lessexpensive cars even though they could afford the luxury car because:A) c ar buyers are irrational.B) t he total utility of less expensive cars is greater than luxury cars.C) t he marginal utility per dollar spent on the less expensive car is higher than on luxurycars.D) n one of these can explain this.22) I f a consumer is purchasing good X at $5 and gets 25 units of marginal utility from the lastunit and good Y at $3 and gets 12 units of marginal utility from the last unit, the consumer:A) i s maximizing total utility and does not want to change their consumption of good X orgood Y.B) w ants to consume more of good X and less of good Y.C) w ants to consume more of good Y and less of good X.D) w ants to consume less of both good X and good Y.23) I f a consumer is obtaining nine units of utility per dollar spent on apples and six units ofutility per dollar spent on oranges, then the consumer:A) i s maximizing total utility.B) w ants to buy more apples and less oranges.C) w ants to buy more oranges and less apples.D) w ants to buy less oranges and less apples.24) I f a consumer is utility maximizing and the price of one good falls, what has happened to themarginal utility divided by the price of the good and what should the consumer do?A) M U/P has increased and the consumer should buy more of this good.B) M U/P has increased and the consumer should buy less of this good.C) M U/P has decreased and the consumer should buy more of this good.D) M U/P has decreased and the consumer should buy less of this good.25) W hen the price of a normal good falls causing your purchasing power to rise, you buy moreof it due to:A) t he substitution effect.B) t he income effect.C) t he deadweight loss effect.D) t he elasticity effect.26) W hen the price of a good falls and you buy more of it because it is relatively less expensive,this is called:A) t he substitution effect.B) t he income effect.C) t he deadweight loss effect.D) t he elasticity effect.27) I f a normal good you are consuming has its price increase, you will buy less of it because:A) t he negative income effect is greater than the positive substitution effect.B) t he positive income and substitution effects work together.C) t he negative income and substitution effects work together.D) t he positive income effect is smaller than and the negative substitution effect.28) I f an inferior good you are consuming has its price increase, you will buy less of it because:A) t he negative income effect is smaller than the positive substitution effect.B) t he positive income and substitution effects work together.C) t he negative income and substitution effects work together.D) t he positive income effect is larger than and the negative substitution effect.29) W hen price decreases for a normal good, the income and substitution effects:A) w ork in the same direction to increase quantity demanded.B) w ork in the same direction to decrease quantity demanded.C) w ork in opposite directions and quantity demanded increases.D) w ork in opposite directions and quantity demanded decreases.30) A Giffen good:A) m ust be an inferior good.B) i s one where the positive income effect of a price increase is larger than the negativesubstitution effect.C) i s one where buyers increase quantity demanded when price increases.D) a ll of the above.31) T o be a Giffen good a good must be:A) a normal good.B) i nferior with an income effect that is larger than the opposing substitution effect.C) i nferior with an income effect that is smaller than the opposing substitution effect.D) i nferior with an income effect and a substitution effect working in the same direction.32) A network externality is when:A) t here is production cost savings from being networked with suppliers.B) t here is production cost savings from being networked with buyers.C) t he utility of a good is affected by how many others use the good.D) t he utility of a good is affected by celebrities who use the good.33) A good is path dependent, when:A) c onsumers get utility from consuming goods that others are consuming such asrestaurants.B) t he first technology that was adopted has an advantage over a better technology thatcame later.C) p eople who move location follow the path of people who moved before them.D) i t can only be used in one way.34) B usiness firms might raise prices only if costs have increased but not when demand hasincreased because:A) d emand changes are hard to determine while cost changes are provided by suppliers.B) f ear that the public may demand the government put a price ceiling on the product.C) f ear that buyers will consider demand-caused price increases as unfair and buyelsewhere.D) c ost changes are usually permanent while demand changes are often temporaryfluctuations.35) S unk costs:A) a re costs that have already been paid and cannot be recaptured.B) a re important for optimal decision making.C) a re costs associated with repairing something you already own.D) a re costs that firms sink into marketing.36) W hat is held constant along one indifference curve?A) P rices of goodsB) M arginal rate of substitutionC) M arginal utilityD) T otal utility37) I ndifference curves intersect:A) a t equilibrium.B) t he consumer optimum.C) w here the marginal rate of substitution for each indifference curve is equal.D) n ever.38) T he indifference curve shows what a consumer:A) w ants.B) c an buy.C) w ill buy.D) c an't buy.39) T he budget constraint on an indifference curve graph shows what a consumer:A) w ants.B) c an buy.C) w ill buy.D) h as bought.40) T he rational consumer will buy that combination of the two goods on an indifference curvegraph that is where:A) t he indifference curve intersects the horizontal axis.B) t he indifference curve intersects the vertical axis.C) a n indifference curve is tangent to the budget constraint.D) t he budget constraint intersects one of the axes.41) W hen the price of one of the goods on an indifference curve graph increases while the otherremains constant, the consumer's:A) i ndifference curve becomes more concave away from the origin.B) i ndifference curve becomes straighter.C) b udget constraint moves away from the origin on the axis of the good whose price hasincreased.D) b udget constraint moves in towards the origin on the axis of the good whose price hasincreased.42) O n an indifference curve/budget constraint graph, the substitution effect of a price change forone good is shown as a movement:A) a long one indifference curve.B) f rom one indifference curve to another one.C) f rom one equilibrium point to another one.D) a long one budget constraint.43) O n an indifference curve/budget constraint graph, the income effect of a price change of onegood is shown as a movement:A) a long one indifference curve.B) f rom one indifference curve to another.C) f rom one equilibrium point to another.D) a long one budget constraint.44) A n increase in a consumer's income is shown on an indifference curve/budget constraintgraph by:A) i ndifference curves all shifting inward.B) i ndifference curves all shifting outward.C) b udget constraint shifting inward.D) b udget constraint shifting outward.Refer to Figure 9.1 for the questions below.Figure 9.145) I n figure 9.1, a change in income is shown in:A) p anel a.B) p anel b.C) p anel c.D) n one of the above.46) I n figure 9.1, a change in the price of candy is shown in:A) p anel a.B) p anel b.C) p anel c.D) n one of the above.47) I n figure 9.1, beginning with the lower level of utility, an increase in the price of popcorn isshown in:A) p anel a.B) p anel b.C) p anel c.D) n one of the above.48) I n figure 9.1 beginning with the lower level of utility, panel c shows:A) a n increase in income.B) a n increase in the price of candy.C) a decrease in the price of candy.D) n one of the above.。