TEST BANK 2024|2025 Principles of Microeconomics Test Item File 2 Ninth Edition by Case/Fair/Oster |ultimate guide 100% verified

Principles of ki




ki MicroeconomicsTes ik




t Item File 2
ki ki ki




9TH Edition by
ki ki




Case/Fair
ki




Prentice Hall ki

,Contents
Chapter 1
ki The Scope and Method of Economics
ki ki ki ki ki 1
Chapter 2
ki The Economic Problem: Scarcity and Choice
ki ki ki ki ki 29
Chapter 3
ki Demand, Supply, and Market Equilibrium
ki ki ki ki 55
Chapter 4
ki Demand and Supply Applications
ki ki ki 98
Chapter 5
ki Elasticity 117
Chapter 6
ki Household Behavior and Consumer Choice ki ki ki ki 135
Chapter 7
ki The Production Process: The Behavior of Profit-Maximizing Firms
ki ki ki ki ki ki ki 171
Chapter 8
ki Short-Run Costs and Output Decisionski ki ki ki 207
Chapter 9
ki Long-Run Costs and Output Decisions ki ki ki ki 252
Chapter 10
ki Input Demand: The Labor and Land Markets
ki ki ki ki ki ki 292
Chapter 11
ki Input Demand: The Capital Markets and Investment Decision
ki ki ki ki ki ki ki 323
Chapter 12
ki General Equilibrium and the Efficiency of Perfect Competition
ki ki ki ki ki ki ki 348
Chapter 13
ki Monopoly and Antitrust Policy ki ki ki 377
Chapter 14
ki Oligopoly 425
Chapter 15
ki Monopolistic Competition ki 449
Chapter 16
ki Externalities, Public Goods, Imperfect ki ki ki



Information,and Social Choice
ki ki ki ki 476
Chapter 17
ki Uncertainty and Asymmetric Information ki ki ki 517
Chapter 18
ki Income Distribution and Poverty
ki ki ki 535
Chapter 19
ki Public Finance: The Economics of Taxation
ki ki ki ki ki 563
Chapter 20
ki International Trade, Comparative Advantage, and Protectionism
ki ki ki ki ki 592
Chapter 21
ki Economic Growth in Developing and Transitional Economies
ki ki ki ki ki ki 628

,Chapter 1 The Scope and Method of Economics
ki ki ki ki ki ki




1.1 Why Study Economics?
ki ki




1 Multiple Choice
ki




1) The reasons to study economics include which of the following?
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A) to be an informed voter ki B) to understand society and global affairs
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C) to learn a way of thinking
ki ki D) all of the ki ki ki ki ki ki ki




aboveAnswer: D
ki ik k i



Diff: 1 ki


Topic: Why Study ki ki


Economics?Skill: Fact
ki ki k i




2) Marginalism is ki



A) the best alternative that we forego when making a decision.
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B) the study of how societies choose to use scarce resources.
ki ki ki ki ki ki ki ki ki



C) a market situation in which profit opportunities are eliminated almost instantaneously.
ki ki ki ki ki ki ki ki ki ki



D) the process of analyzing the additional costs or benefits arising from a
ki ki ki ki ki ki ki ki ki ki ki




ki decision.Answer: D ik k i



Diff: 1 ki


Topic: Why Study ki ki


Economics?Skill: Definition
ki ki k i




3) Economics is best defined as the study of ki ki ki ki ki ki ki



A) financial decision-making. k i



B) how consumers make purchasing decisions. ki ki ki ki



C) choices made by people faced with scarcity. ki ki ki ki ki ki



D) inflation, unemployment, and economic ki k i ki




k i growth.Answer: C ik k i



Diff: 2 ki


Topic: Why Study ki ki


Economics?Skill: Definition
ki ki k i




4) The Industrial Revolution refers to the rise of the modern factory system in
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duringthe late eighteenth and early nineteenth centuries.
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A) the United States ki B) England ki ki



C) France ki D) Germany ki




Answer: B ki


Diff: 1 ki


Topic: Why Study ki ki


Economics?Skill: Fact
ki ki k i




1

, 5) Which of the following statements is correct?
ki ki ki ki ki ki



A) Economics is a natural science. ki ki ki ki



B) In large measure, economics is the study of how people make choices.
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C) If poverty was eliminated there would be no reason to study economics.
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D) Economic analysis can be used to explain how societies, but not individuals, ki ki ki ki ki ki ki ki ki ki ki



makedecisions.
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Answer: B ki


Diff: 1 ki


Topic: Why Study ki ki


Economics?Skill: Fact
ki ki k i




6) Economics is the study of ki ki ki ki



A) how to invest in the stock market. ki ki ki ki ki ki



B) how society uses limited resources. ki ki ki ki



C) the role of money in markets. ki ki ki ki ki



D) how government officials decide which goods and services are
ki ki ki ki ki ki ki ki




ki produced.Answer: B ik k i



Diff: 2 ki


Topic: Why Study ki ki


Economics?Skill: Definition
ki ki k i




7) Costs that cannot be avoided, because they have already been incurred are known as
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A) differential costs. B) marginal costs. ki ki ki



C) opportunity costs.
ki D) sunk ki ki




ki costs.Answer: D ik k i



Diff: 2 ki


Topic: Why Study ki ki


Economics?Skill: Definition
ki ki k i




8) Suppose that two weeks ago you purchased a ticket to the symphony for $40. Last week
ki ki ki ki ki ki ki ki ki ki ki ki ki ki ki



kisomeone invited you to go camping on the same night as the symphony concert. You
ki ki ki ki ki ki ki ki ki ki ki ki ki ki



kiwouldmuch rather go camping than go to the symphony. You have tried unsuccessfully
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kito sell the symphony concert ticket. Which of the following statements regarding this
ki ki ki ki ki ki ki ki ki ki ki ki



ki situation is correct? ki ki



A) The $40 symphony ticket should be irrelevant in your decision making,
ki ki ki ki ki ki ki ki ki ki



because itrepresents the marginal cost of going camping.
ki ki ik ki ki ki ki ki ki



B) The $40 you paid for the symphony ticket should be irrelevant in your decision
ki ki ki ki ki ki ki ki ki ki ki ki ki



making,because it is a sunk cost.
ki ik ki ki ki ki ki



C) The $40 you paid for the symphony ticket is relevant to the decision, as this
ki ki ki ki ki ki ki ki ki ki ki ki ki ki



representsthe opportunity cost of going camping.
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D) You should base your decision on whether or not going camping will provide
ki ki ki ki ki ki ki ki ki ki ki ki



you withmore than $40 in satisfaction.
ki ki ik ki ki ki ki




Answer: B ki


Diff: 2 ki


Topic: Why Study ki ki


Economics?Skill: Conceptual
ki ki k i


AACSB: Reflective Thinking ki ki




2