TEST BANK 2024|2025 Principles of Microeconomics Test Item File 2 Ninth Edition by Case/Fair/Oster |newest edition 2024|2025.

Principles of ju




ju MicroeconomicsTes ju




t Item File 2
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9TH Edition by
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ju Case/Fair




Prentice Hall ju

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



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

,Chapter 1 The Scope and Method of Economics
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1.1 Why Study Economics?
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1 Multiple Choice
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1) The reasons to study economics include which of the following?
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A) to be an informed voter ju B) to understand society and global affairs
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C) to learn a way of thinking
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above Answer: D
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Diff: 1 ju


Topic: Why Study j u ju


Economics?Skill: Fact
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2) Marginalism is ju



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.
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C) a market situation in which profit opportunities are eliminated almost instantaneously.
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D) the process of analyzing the additional costs or benefits arising from a
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ju decision.Answer: D ju j u



Diff: 1 ju


Topic: Why Study j u ju


Economics?Skill: Definition
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3) Economics is best defined as the study of ju ju ju ju ju ju ju



A) financial decision-making. j u



B) how consumers make purchasing decisions. ju j u j u j u



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



D) inflation, unemployment, and economic j u j u j u




j u growth.Answer: C ju j u



Diff: 2 ju


Topic: Why Study j u ju


Economics?Skill: Definition
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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 ju B) England ju ju



C) France ju D) Germany ju




Answer: B ju


Diff: 1 ju


Topic: Why Study j u ju


Economics?Skill: Fact
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1

, 5) Which of the following statements is correct?
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A) Economics is a natural science. ju ju ju ju



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, ju ju ju ju ju ju ju ju ju ju ju



makedecisions.
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Answer: B ju


Diff: 1 ju


Topic: Why Study j u ju


Economics?Skill: Fact
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6) Economics is the study of ju ju ju ju



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



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



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



D) how government officials decide which goods and services are
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ju produced.Answer: B ju j u



Diff: 2 ju


Topic: Why Study j u ju


Economics?Skill: Definition
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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. ju ju ju



C) opportunity costs.
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ju costs.Answer: D ju j u



Diff: 2 ju


Topic: Why Study j u ju


Economics?Skill: Definition
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8) Suppose that two weeks ago you purchased a ticket to the symphony for $40. Last week
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jusomeone invited you to go camping on the same night as the symphony concert. You
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juwouldmuch rather go camping than go to the symphony. You have tried unsuccessfully
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juto sell the symphony concert ticket. Which of the following statements regarding this
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jusituation is correct? ju ju



A) The $40 symphony ticket should be irrelevant in your decision making,
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because itrepresents the marginal cost of going camping.
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B) The $40 you paid for the symphony ticket should be irrelevant in your decision
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making,because it is a sunk cost.
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C) The $40 you paid for the symphony ticket is relevant to the decision, as this
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representsthe opportunity cost of going camping.
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D) You should base your decision on whether or not going camping will provide
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you withmore than $40 in satisfaction.
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Answer: B ju


Diff: 2 ju


Topic: Why Study j u ju


Economics?Skill: Conceptual
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AACSB: Reflective Thinking ju ju




2