Name: Class: Date:
Chap 01 4e Goolsbee
Indicate the answer choice that best completes the statement or answers the question.
1. Which of these is NOT a microeconomic topic?
a. a tax on tobacco
b. expansionary monetary policy
c. a subsidy for solar power
d. a quota on taxicabs
2. To learn about the intricacies of theories and models, economists use:
a. graphs and mathematics.
b. their best guess.
c. Wikipedia.
d. only the stock market.
3. Which of these is considered a microeconomic topic?
a. unemployment
b. inflation
c. gross domestic product
d. the telecommunications industry
4. You invented a new product, for which you've acquired a patent, making you the sole seller of your product.
The market structure is:
a. monopoly.
b. perfect competition.
c. oligopoly.
d. monopolistically competition.
5. Which of these is NOT a situation in which markets might operate inefficiently?
a. All information is known by both parties in a transaction.
b. When a transaction affects people who are neither the buyer nor the seller.
c. When a good's benefits are shared across many people at the same time.
d. When a seller has more relevant information about a product than a buyer.
6. Goodyear, Michelin, and Bridgestone tire companies make strategic decisions based on the actions of the
other firms in the market. The market structure is:
a. oligopoly.
b. perfect competition.
c. monopoly.
d. monopolistically competition.
Page 1
, Name: Class: Date:
Chap 01 4e Goolsbee
7. On the supply side of the market, you would examine the:
a. decisions of firms.
b. reference of consumers.
c. income of consumers.
d. number of consumers.
8. When comparing a monopoly outcome to a perfectly competitive outcome, the monopolist produces _____
and charges a _____ price.
a. more; higher
b. less; higher
c. less; lower
d. more; lower
9. The term ceteris paribus is an assumption that economists make that implies:
a. all else is equal.
b. to the victor go the spoils.
c. that nothing can be said to be certain except death and taxes.
d. that the market is always efficient.
10. Oligopolies exist when:
a. there are no barriers to entry.
b. firms are price takers.
c. the market supply curve reflects the aggregate cost curves of firms.
d. multiple firms interact strategically in the same market.
11. Which of these is a microeconomic policy?
a. fiscal policy
b. monetary policy
c. rent control
d. tariffs imposed on all importing nations
12. As a producer of corn, the corn you grow is identical to the corn of all other farmers, and regardless of how
much you produce, you must accept the market price for your crop. The market structure for corn is:
a. monopoly.
b. perfect competition.
c. oligopoly.
d. monopolistically competition.
Page 2
Chap 01 4e Goolsbee
Indicate the answer choice that best completes the statement or answers the question.
1. Which of these is NOT a microeconomic topic?
a. a tax on tobacco
b. expansionary monetary policy
c. a subsidy for solar power
d. a quota on taxicabs
2. To learn about the intricacies of theories and models, economists use:
a. graphs and mathematics.
b. their best guess.
c. Wikipedia.
d. only the stock market.
3. Which of these is considered a microeconomic topic?
a. unemployment
b. inflation
c. gross domestic product
d. the telecommunications industry
4. You invented a new product, for which you've acquired a patent, making you the sole seller of your product.
The market structure is:
a. monopoly.
b. perfect competition.
c. oligopoly.
d. monopolistically competition.
5. Which of these is NOT a situation in which markets might operate inefficiently?
a. All information is known by both parties in a transaction.
b. When a transaction affects people who are neither the buyer nor the seller.
c. When a good's benefits are shared across many people at the same time.
d. When a seller has more relevant information about a product than a buyer.
6. Goodyear, Michelin, and Bridgestone tire companies make strategic decisions based on the actions of the
other firms in the market. The market structure is:
a. oligopoly.
b. perfect competition.
c. monopoly.
d. monopolistically competition.
Page 1
, Name: Class: Date:
Chap 01 4e Goolsbee
7. On the supply side of the market, you would examine the:
a. decisions of firms.
b. reference of consumers.
c. income of consumers.
d. number of consumers.
8. When comparing a monopoly outcome to a perfectly competitive outcome, the monopolist produces _____
and charges a _____ price.
a. more; higher
b. less; higher
c. less; lower
d. more; lower
9. The term ceteris paribus is an assumption that economists make that implies:
a. all else is equal.
b. to the victor go the spoils.
c. that nothing can be said to be certain except death and taxes.
d. that the market is always efficient.
10. Oligopolies exist when:
a. there are no barriers to entry.
b. firms are price takers.
c. the market supply curve reflects the aggregate cost curves of firms.
d. multiple firms interact strategically in the same market.
11. Which of these is a microeconomic policy?
a. fiscal policy
b. monetary policy
c. rent control
d. tariffs imposed on all importing nations
12. As a producer of corn, the corn you grow is identical to the corn of all other farmers, and regardless of how
much you produce, you must accept the market price for your crop. The market structure for corn is:
a. monopoly.
b. perfect competition.
c. oligopoly.
d. monopolistically competition.
Page 2
