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MICROECONOMICS 9TH EDITION (PERLOFF) EXAM LATEST
VERSION QUESTIONS AND ANSWERS 2026 EDITION
MICROECONOMICS 9TH EDITION (PERLOFF) – EXAM 130 QUESTIONS
QUESTIONS 1-30: INTRODUCTION AND SUPPLY & DEMAND
1. Microeconomics studies the allocation of:
A) decision makers.
B) scarce resources.
C) models.
D) unlimited resources.
Correct Answer: B
Rationale: Microeconomics studies the allocation of scarce resources. Because
resources are limited relative to wants, society must make choices about how to
allocate them. This is the fundamental problem that microeconomics addresses .
2. Microeconomics is often called:
A) price theory.
B) decision science.
C) scarcity.
D) resource theory.
Correct Answer: A
Rationale: Microeconomics is often called price theory because it focuses on how
prices are determined in markets and how prices coordinate the decisions of
consumers and firms. This reflects the central role that prices play in allocating
resources in a market economy .
3. Most microeconomic models assume that decision makers wish to:
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A) make themselves as well off as possible.
B) act selfishly.
C) make others as well off as possible.
D) None of the above.
Correct Answer: A
Rationale: Most microeconomic models assume that decision makers wish to make
themselves as well off as possible. This is the assumption of rational self-interest,
which means that individuals and firms make choices that maximize their own well-
being, given their constraints .
4. Society faces trade-offs because of:
A) government regulations.
B) profit motive.
C) faceless bureaucrats.
D) scarcity.
Correct Answer: D
Rationale: Society faces trade-offs because of scarcity. Since resources are limited,
choosing to produce more of one good means producing less of another. Every choice
involves giving up something else—this is the concept of opportunity cost .
5. A market:
A) always involves the personal exchange of goods for money.
B) allows interactions between consumers and firms.
C) always takes place at a physical location.
D) has no influence on prices.
Correct Answer: B
Rationale: A market allows interactions between consumers and firms. While markets
can be physical or virtual, their essential function is to facilitate exchange between
buyers and sellers. Prices in a market are determined through the interaction of supply
and demand .
6. What links the decisions of consumers and firms in a market?
A) the government
B) prices
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C) coordination officials
D) microeconomics
Correct Answer: B
Rationale: Prices link the decisions of consumers and firms in a market. Prices serve as
signals that coordinate the choices of buyers and sellers. When consumers want more
of a good, prices rise, signaling firms to produce more .
7. The price of a good is:
A) always equal to the cost of producing the good.
B) never affected by the number of buyers and sellers.
C) usually determined in a market.
D) None of the above.
Correct Answer: C
Rationale: The price of a good is usually determined in a market through the interaction
of supply and demand. Prices are not always equal to production costs, as they can be
influenced by market power, shortages, or other factors .
8. Who or what is responsible for bringing together scarce resources to produce
most of the goods and services in the U.S.?
A) the U.S. government
B) the United Nations
C) the Federal Reserve Bank
D) markets and prices
Correct Answer: D
Rationale: Markets and prices are responsible for bringing together scarce resources to
produce most goods and services in the U.S. The price system coordinates the
decisions of millions of consumers, firms, and resource suppliers without central
planning .
9. Which of the following is a fundamental topic addressed by microeconomics?
A) whether to extend unemployment insurance
B) determining how many new iPhones the Apple company should produce
C) the level of inflation in the country
D) the impact of interest rates on savings in the economy
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Correct Answer: B
Rationale: Determining how many new iPhones Apple should produce is a fundamental
microeconomic question. Microeconomics examines the decisions of individual firms
and consumers, while macroeconomic topics include inflation, unemployment, and
interest rates .
10. A "twinkie tax" on fatty foods would aim to:
A) reduce the consumption of fatty foods.
B) reduce the production of fatty foods.
C) raise tax revenues for other uses.
D) All of the above.
Correct Answer: D
Rationale: A tax on fatty foods could aim to reduce consumption (by making them more
expensive), reduce production (as demand falls), and raise tax revenues. This illustrates
how government policy can influence market outcomes through price mechanisms .
11. Which choice below illustrates the tradeoff faced by surfboard manufacturers
after Clark foam shut down in 2005, eliminating 80% of the world's foam blanks
used to shape surfboards? The firms decide to:
A) substitute foam blanks for balsa wood blanks as used in the 1940s.
B) advertise their new surfboard wax.
C) offer surf classes.
D) B and C
Correct Answer: A
Rationale: When the supply of foam blanks was disrupted, surfboard manufacturers
faced a tradeoff and chose to substitute balsa wood blanks for foam blanks. This
illustrates how firms respond to scarcity by finding alternatives—a key concept in
microeconomics .
12. In the Soviet Union, which boasted about giving every worker a job, some
workers were given the task of digging holes and filling them again. What function
of microeconomic analysis did this policy address?
A) What goods/services to produce
B) How to produce the goods and services
MICROECONOMICS 9TH EDITION (PERLOFF) EXAM LATEST
VERSION QUESTIONS AND ANSWERS 2026 EDITION
MICROECONOMICS 9TH EDITION (PERLOFF) – EXAM 130 QUESTIONS
QUESTIONS 1-30: INTRODUCTION AND SUPPLY & DEMAND
1. Microeconomics studies the allocation of:
A) decision makers.
B) scarce resources.
C) models.
D) unlimited resources.
Correct Answer: B
Rationale: Microeconomics studies the allocation of scarce resources. Because
resources are limited relative to wants, society must make choices about how to
allocate them. This is the fundamental problem that microeconomics addresses .
2. Microeconomics is often called:
A) price theory.
B) decision science.
C) scarcity.
D) resource theory.
Correct Answer: A
Rationale: Microeconomics is often called price theory because it focuses on how
prices are determined in markets and how prices coordinate the decisions of
consumers and firms. This reflects the central role that prices play in allocating
resources in a market economy .
3. Most microeconomic models assume that decision makers wish to:
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A) make themselves as well off as possible.
B) act selfishly.
C) make others as well off as possible.
D) None of the above.
Correct Answer: A
Rationale: Most microeconomic models assume that decision makers wish to make
themselves as well off as possible. This is the assumption of rational self-interest,
which means that individuals and firms make choices that maximize their own well-
being, given their constraints .
4. Society faces trade-offs because of:
A) government regulations.
B) profit motive.
C) faceless bureaucrats.
D) scarcity.
Correct Answer: D
Rationale: Society faces trade-offs because of scarcity. Since resources are limited,
choosing to produce more of one good means producing less of another. Every choice
involves giving up something else—this is the concept of opportunity cost .
5. A market:
A) always involves the personal exchange of goods for money.
B) allows interactions between consumers and firms.
C) always takes place at a physical location.
D) has no influence on prices.
Correct Answer: B
Rationale: A market allows interactions between consumers and firms. While markets
can be physical or virtual, their essential function is to facilitate exchange between
buyers and sellers. Prices in a market are determined through the interaction of supply
and demand .
6. What links the decisions of consumers and firms in a market?
A) the government
B) prices
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C) coordination officials
D) microeconomics
Correct Answer: B
Rationale: Prices link the decisions of consumers and firms in a market. Prices serve as
signals that coordinate the choices of buyers and sellers. When consumers want more
of a good, prices rise, signaling firms to produce more .
7. The price of a good is:
A) always equal to the cost of producing the good.
B) never affected by the number of buyers and sellers.
C) usually determined in a market.
D) None of the above.
Correct Answer: C
Rationale: The price of a good is usually determined in a market through the interaction
of supply and demand. Prices are not always equal to production costs, as they can be
influenced by market power, shortages, or other factors .
8. Who or what is responsible for bringing together scarce resources to produce
most of the goods and services in the U.S.?
A) the U.S. government
B) the United Nations
C) the Federal Reserve Bank
D) markets and prices
Correct Answer: D
Rationale: Markets and prices are responsible for bringing together scarce resources to
produce most goods and services in the U.S. The price system coordinates the
decisions of millions of consumers, firms, and resource suppliers without central
planning .
9. Which of the following is a fundamental topic addressed by microeconomics?
A) whether to extend unemployment insurance
B) determining how many new iPhones the Apple company should produce
C) the level of inflation in the country
D) the impact of interest rates on savings in the economy
, Page 4 of 69
Correct Answer: B
Rationale: Determining how many new iPhones Apple should produce is a fundamental
microeconomic question. Microeconomics examines the decisions of individual firms
and consumers, while macroeconomic topics include inflation, unemployment, and
interest rates .
10. A "twinkie tax" on fatty foods would aim to:
A) reduce the consumption of fatty foods.
B) reduce the production of fatty foods.
C) raise tax revenues for other uses.
D) All of the above.
Correct Answer: D
Rationale: A tax on fatty foods could aim to reduce consumption (by making them more
expensive), reduce production (as demand falls), and raise tax revenues. This illustrates
how government policy can influence market outcomes through price mechanisms .
11. Which choice below illustrates the tradeoff faced by surfboard manufacturers
after Clark foam shut down in 2005, eliminating 80% of the world's foam blanks
used to shape surfboards? The firms decide to:
A) substitute foam blanks for balsa wood blanks as used in the 1940s.
B) advertise their new surfboard wax.
C) offer surf classes.
D) B and C
Correct Answer: A
Rationale: When the supply of foam blanks was disrupted, surfboard manufacturers
faced a tradeoff and chose to substitute balsa wood blanks for foam blanks. This
illustrates how firms respond to scarcity by finding alternatives—a key concept in
microeconomics .
12. In the Soviet Union, which boasted about giving every worker a job, some
workers were given the task of digging holes and filling them again. What function
of microeconomic analysis did this policy address?
A) What goods/services to produce
B) How to produce the goods and services
