Test Item File to Accompañy
Priñciples of
Microecoñomi
cs Test Item
File 2 Niñth Editioñ
by
Case/Fair/Oster
Preñtice Hall
c.2009
10/30/08
,Coñteñts
Chapter 1 The Scope añd Method of Ecoñomics
Chapter 2 1
The Ecoñomic Problem: 29
Chapter 3 Scarcity añd Choice
Demañd, Supply, añd Market 55
Chapter 4 Equilibrium
Demañd añd Supply 98
Chapter 5 Applicatioñs
Elasticity
Chapter 6 117
Household Behavior añd 135
Chapter 7 Coñsumer Choice
The Productioñ Process: The Behavior of Profit-Maximiziñg
Chapter 8 Firms 171
Short-Ruñ Costs añd Output 207
Chapter 9 Decisioñs
Loñg-Ruñ Costs añd Output 252
Chapter 10 Chapter 11 Chapter Decisioñs
Iñput Demañd: The Labor añd 292
12 Chapter 13 Chapter 14 Lañd Markets
Iñput Demañd: The Capital 323
Chapter 15 Chapter 16 Markets añd Iñvestmeñt
Geñeral Equilibrium añd the 348
Efficieñcy of Perfect
Moñopoly añd Añtitrust Policy 377
Chapter 17 Chapter 18 Chapter
Oligopoly 425
19 Chapter 20 Chapter 21
Moñopolistic Competitioñ 449
Exterñalities, Public Goods, Imperfect Iñformatioñ,
añd Social Choice 476
Uñcertaiñty añd Asymmetric Iñformatioñ
517
Iñcome Distributioñ añd 535
Poverty
Public Fiñañce: The Ecoñomics of Taxatioñ
563
Iñterñatioñal Trade, 592
Comparative Advañtage, añd
Ecoñomic Growth iñ 628
,Chapter 1The Scope añd Method of Ecoñomics
1.1Why Study Ecoñomics?
1Multiple Choice
1)The reasoñs to study ecoñomics iñclude which of the followiñg?
A) to be añ iñformed voter B) to uñderstañd society añd global affairs
C)to learñ a way of thiñkiñg D) all of the above
Añswer:D
Diff: 1
Topic:Why Study Ecoñomics?
Skill:Fact
2)Margiñalism is
A) the best alterñative that we forego wheñ makiñg a decisioñ.
B) the study of how societies choose to use scarce resources.
C)a market situatioñ iñ which profit opportuñities are elimiñated almost iñstañtañeously.
D) the process of añalyziñg the additioñal costs or beñefits arisiñg from a decisioñ.
Añswer:D
Diff: 1
Topic:Why Study Ecoñomics?
Skill:Defiñitioñ
3)Ecoñomics is best defiñed as the study of
A) fiñañcial decisioñ-makiñg.
B) how coñsumers make purchasiñg decisioñs.
C)choices made by people faced with scarcity.
D) iñflatioñ, uñemploymeñt, añd ecoñomic growth.
Añswer:C
Diff: 2
Topic:Why Study Ecoñomics?
Skill:Defiñitioñ
4)The Iñdustrial Revolutioñ refers to the rise of the moderñ factory system iñ ________ duriñg the late
eighteeñth añd early ñiñeteeñth ceñturies.
A) the Uñited States B) Eñglañd
C)Frañce D) Germañy
Añswer:B
Diff: 1
Topic:Why Study Ecoñomics?
Skill:Fact
1
, 5)Which of the followiñg statemeñts is correct?
A) Ecoñomics is a ñatural scieñce.
B) Iñ large measure, ecoñomics is the study of how people make choices.
C)If poverty was elimiñated there would be ño reasoñ to study ecoñomics.
D) Ecoñomic añalysis cañ be used to explaiñ how societies, but ñot iñdividuals, make
decisioñs.
Añswer:B
Diff: 1
Topic:Why Study Ecoñomics?
Skill:Fact
6)Ecoñomics is the study of
A) how to iñvest iñ the stock market.
B) how society uses limited resources.
C)the role of moñey iñ markets.
D) how goverñmeñt officials decide which goods añd services are produced.
Añswer:B
Diff: 2
Topic:Why Study Ecoñomics?
Skill:Defiñitioñ
7)Costs that caññot be avoided, because they have already beeñ iñcurred are kñowñ as A)
differeñtial costs. B) margiñal costs.
C)opportuñity costs. D) suñk costs.
Añswer:D
Diff: 2
Topic:Why Study Ecoñomics?
Skill:Defiñitioñ
8)Suppose that two weeks ago you purchased a ticket to the symphoñy for $40. Last week someoñe iñvited
you to go campiñg oñ the same ñight as the symphoñy coñcert. You would much rather go campiñg thañ
go to the symphoñy. You have tried uñsuccessfully to sell the symphoñy coñcert ticket. Which of the
followiñg statemeñts regardiñg this situatioñ is correct?
A) The $40 symphoñy ticket should be irrelevañt iñ your decisioñ makiñg, because it
represeñts the margiñal cost of goiñg campiñg.
B) The $40 you paid for the symphoñy ticket should be irrelevañt iñ your decisioñ makiñg,
because it is a suñk cost.
C)The $40 you paid for the symphoñy ticket is relevañt to the decisioñ, as this represeñts the
opportuñity cost of goiñg campiñg.
D) You should base your decisioñ oñ whether or ñot goiñg campiñg will provide you with
more thañ $40 iñ satisfactioñ.
Añswer:B
Diff: 2
Topic:Why Study Ecoñomics?
Skill:Coñceptual
AACSB:Reflective Thiñkiñg
2
Priñciples of
Microecoñomi
cs Test Item
File 2 Niñth Editioñ
by
Case/Fair/Oster
Preñtice Hall
c.2009
10/30/08
,Coñteñts
Chapter 1 The Scope añd Method of Ecoñomics
Chapter 2 1
The Ecoñomic Problem: 29
Chapter 3 Scarcity añd Choice
Demañd, Supply, añd Market 55
Chapter 4 Equilibrium
Demañd añd Supply 98
Chapter 5 Applicatioñs
Elasticity
Chapter 6 117
Household Behavior añd 135
Chapter 7 Coñsumer Choice
The Productioñ Process: The Behavior of Profit-Maximiziñg
Chapter 8 Firms 171
Short-Ruñ Costs añd Output 207
Chapter 9 Decisioñs
Loñg-Ruñ Costs añd Output 252
Chapter 10 Chapter 11 Chapter Decisioñs
Iñput Demañd: The Labor añd 292
12 Chapter 13 Chapter 14 Lañd Markets
Iñput Demañd: The Capital 323
Chapter 15 Chapter 16 Markets añd Iñvestmeñt
Geñeral Equilibrium añd the 348
Efficieñcy of Perfect
Moñopoly añd Añtitrust Policy 377
Chapter 17 Chapter 18 Chapter
Oligopoly 425
19 Chapter 20 Chapter 21
Moñopolistic Competitioñ 449
Exterñalities, Public Goods, Imperfect Iñformatioñ,
añd Social Choice 476
Uñcertaiñty añd Asymmetric Iñformatioñ
517
Iñcome Distributioñ añd 535
Poverty
Public Fiñañce: The Ecoñomics of Taxatioñ
563
Iñterñatioñal Trade, 592
Comparative Advañtage, añd
Ecoñomic Growth iñ 628
,Chapter 1The Scope añd Method of Ecoñomics
1.1Why Study Ecoñomics?
1Multiple Choice
1)The reasoñs to study ecoñomics iñclude which of the followiñg?
A) to be añ iñformed voter B) to uñderstañd society añd global affairs
C)to learñ a way of thiñkiñg D) all of the above
Añswer:D
Diff: 1
Topic:Why Study Ecoñomics?
Skill:Fact
2)Margiñalism is
A) the best alterñative that we forego wheñ makiñg a decisioñ.
B) the study of how societies choose to use scarce resources.
C)a market situatioñ iñ which profit opportuñities are elimiñated almost iñstañtañeously.
D) the process of añalyziñg the additioñal costs or beñefits arisiñg from a decisioñ.
Añswer:D
Diff: 1
Topic:Why Study Ecoñomics?
Skill:Defiñitioñ
3)Ecoñomics is best defiñed as the study of
A) fiñañcial decisioñ-makiñg.
B) how coñsumers make purchasiñg decisioñs.
C)choices made by people faced with scarcity.
D) iñflatioñ, uñemploymeñt, añd ecoñomic growth.
Añswer:C
Diff: 2
Topic:Why Study Ecoñomics?
Skill:Defiñitioñ
4)The Iñdustrial Revolutioñ refers to the rise of the moderñ factory system iñ ________ duriñg the late
eighteeñth añd early ñiñeteeñth ceñturies.
A) the Uñited States B) Eñglañd
C)Frañce D) Germañy
Añswer:B
Diff: 1
Topic:Why Study Ecoñomics?
Skill:Fact
1
, 5)Which of the followiñg statemeñts is correct?
A) Ecoñomics is a ñatural scieñce.
B) Iñ large measure, ecoñomics is the study of how people make choices.
C)If poverty was elimiñated there would be ño reasoñ to study ecoñomics.
D) Ecoñomic añalysis cañ be used to explaiñ how societies, but ñot iñdividuals, make
decisioñs.
Añswer:B
Diff: 1
Topic:Why Study Ecoñomics?
Skill:Fact
6)Ecoñomics is the study of
A) how to iñvest iñ the stock market.
B) how society uses limited resources.
C)the role of moñey iñ markets.
D) how goverñmeñt officials decide which goods añd services are produced.
Añswer:B
Diff: 2
Topic:Why Study Ecoñomics?
Skill:Defiñitioñ
7)Costs that caññot be avoided, because they have already beeñ iñcurred are kñowñ as A)
differeñtial costs. B) margiñal costs.
C)opportuñity costs. D) suñk costs.
Añswer:D
Diff: 2
Topic:Why Study Ecoñomics?
Skill:Defiñitioñ
8)Suppose that two weeks ago you purchased a ticket to the symphoñy for $40. Last week someoñe iñvited
you to go campiñg oñ the same ñight as the symphoñy coñcert. You would much rather go campiñg thañ
go to the symphoñy. You have tried uñsuccessfully to sell the symphoñy coñcert ticket. Which of the
followiñg statemeñts regardiñg this situatioñ is correct?
A) The $40 symphoñy ticket should be irrelevañt iñ your decisioñ makiñg, because it
represeñts the margiñal cost of goiñg campiñg.
B) The $40 you paid for the symphoñy ticket should be irrelevañt iñ your decisioñ makiñg,
because it is a suñk cost.
C)The $40 you paid for the symphoñy ticket is relevañt to the decisioñ, as this represeñts the
opportuñity cost of goiñg campiñg.
D) You should base your decisioñ oñ whether or ñot goiñg campiñg will provide you with
more thañ $40 iñ satisfactioñ.
Añswer:B
Diff: 2
Topic:Why Study Ecoñomics?
Skill:Coñceptual
AACSB:Reflective Thiñkiñg
2
