Exam (elaborations) TEST BANK FOR Microeconomics 7th Edition by Jeffre

,Microeconomics,  7e  (Perloff)

Chapter  1       Introduction



1.1       Microeconomics:  The  Allocation  of  Scarce  Resources


1)  Microeconomics  studies  the  allocation  of
A)  decision  makers.
B)  scarce  resources.
C)  models.
D)  unlimited  resources.
Answer:     B
Section:     The  Allocation  of  Scarce  Resources
Question  Status:     Old
AACSB:     Analytic  thinking

2)  Microeconomics  is  often  called
A)  price  theory.
B)  decision  science.
C)  scarcity.
D)  resource  theory.
Answer:     A
Section:     The  Allocation  of  Scarce  Resources
Question  Status:     Old
AACSB:     Analytic  thinking

3)  Most  microeconomic  models  assume  that  decision  makers  wish  to
A)  make  themselves  as  well  off  as  possible.
B)  act  selfishly.
C)  make  others  as  well  off  as  possible.
D)  None  of  the  above.
Answer:     A
Section:     The  Allocation  of  Scarce  Resources
Question  Status:     Old
AACSB:     Analytic  thinking

4)  Society  faces  trade-­‐‑offs  because  of
A)  government  regulations.
B)  profit  motive.
C)  faceless  bureaucrats.

,D)  scarcity.
Answer:     D
Section:     The  Allocation  of  Scarce  Resources
Question  Status:     Old
AACSB:     Analytic  thinking

, 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.
Answer:     B
Section:     The  Allocation  of  Scarce  Resources
Question  Status:     Old
AACSB:     Analytic  thinking

6)  What  links  the  decisions  of  consumers  and  firms  in  a  market?
A)  the  government
B)  prices
C)  coordination  officials
D)  microeconomics
Answer:     B
Section:     The  Allocation  of  Scarce  Resources
Question  Status:     Old
AACSB:     Analytic  thinking

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.
Answer:     C
Section:     The  Allocation  of  Scarce  Resources
Question  Status:     Old
AACSB:     Analytic  thinking

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
Answer:     D
Section:     The  Allocation  of  Scarce  Resources
Question  Status:     Revised
AACSB:     Analytic  thinking