Test Bank of Microeconomics 7th Edition Jeffrey M. Perloff

st Bank of Microeconomics 7th Edition Jeffrey M. Perloff Microeconomics, 7e (Perloff) Chapter 1 Introduction 1.1 Microeconomics: The Allocation of Scarce Resources 1) Microeconomics studies the allocation of 2) Microeconomics is often called 3) Most microeconomic models assume that decision makers wish to 4) Society faces trade-offs because of 5) A market 6) What links the decisions of consumers and firms in a market? 7) The price of a good is 8) Who or what is responsible for bringing together scarce resources to produce most of the goods and services in the U.S.? 9) Which of the following is a fundamental topic addressed by microeconomics? 10) A "twinkie tax" on fatty foods would aim to 11) Which choice below illustrates the tradeoff faced by surfboard manufacturers after Clark foam shut down in 2005, eliminating 80% of the world's foam blanks used to shape surfboards? The firms decide to 12) In the Soviet Union, which boasted about giving every worker a job, some workers were given the task of digging holes and filling them again. What function of microeconomic analysis did this policy address? 13) The objective of creating a permit trading system for SO2 (sulfur dioxide) is to 14) Under most circumstances, the application of taxes on goods will only affect who gets the goods. 15) Most modern financial centers use computers to match buyers and sellers. This absence of personal contact contradicts the definition of a market. 16) Governments do not respond to prices. 17) Explain how a market helps determine which goods and services will be produced, how to produce them, and who gets them. ...................................CONTINUED.........................................