Microeconomics 6th Ed Solution Manual Besanko and
Braeutigam | Complete 2027 Guide
Chapter 1: Analyzing Economic Problems
1. The analytical tools underlying nearly all microeconomic studies are:
a) unconstrained optimization and comparative statics.
b) comparative statics and game theory.
c) opportunity cost and equilibrium analysis.
d) constrained optimization, equilibrium analysis, and comparative statics.
Answer: d
Rationale: Most microeconomic models analyze how agents make optimal choices
under constraints (constrained optimization), how these choices balance out in a
system (equilibrium analysis), and how outcomes change when underlying
conditions shift (comparative statics).
2. Economics is often described as:
a) The science of choice.
b) The science of constrained choice.
c) The science of supply and demand.
d) The science of market forces.
Answer: b
Rationale: This definition highlights the core economic problem: because
resources are scarce, individuals and societies cannot have everything they want
and must make choices within these limits.
3. Microeconomics examines:
a) the economic behavior of an entire nation.
b) the economic behavior of individual economic decision units.
c) topics such as national income and inflation.
d) monetary policy.
,Answer: b
Rationale: Microeconomics focuses on the actions of individual agents like
consumers, workers, and firms. Macroeconomics deals with the overall economy.
4. An endogenous variable is:
a) a variable that an economic agent chooses.
b) consumption, investment or government spending.
c) a variable determined within the economic system being studied.
d) a variable pertaining to the home country economy.
Answer: c
Rationale: Endogenous variables are the outcomes of the model, explained by the
model itself. Exogenous variables are external factors taken as given.
5. An example of a constraint is:
a) a limitation on the production of automobiles.
b) a maximum size.
c) the maximum budget associated with research and development.
d) all of the above.
Answer: b
Rationale: A constraint is a boundary that limits the available options, such as a
maximum size, budget, or time. While 'all of the above' is tempting, the source
specifically identifies 'a maximum size' as the correct example .
6. Equilibrium is a condition where:
a) all economic variables are equal.
b) a system will continue indefinitely as long as all given factors are unchanged.
c) a system will change in the short run as long as all given factors are unchanged.
d) economic variables will change over time.
Answer: b
Rationale: Equilibrium is a state of balance where there is no inherent tendency
for change. The system will remain in this state unless an external factor is altered.
7. Economics is the study of _____.
a) the allocation of money
,b) changes in supply and demand
c) the allocation of scarce resources
d) the increase in prices
Answer: c
Rationale: This is the most fundamental definition of economics: the study of how
societies allocate scarce resources to satisfy unlimited wants.
8. Questions economists might ask include all of the following except:
a) What goods and services will be produced, and in what quantities?
b) Who will produce the goods and services, and how?
c) How will weather patterns affect the quality of life in the United States?
d) Who will receive the goods and services that are produced?
Answer: c
Rationale: This question is more related to climatology or environmental science.
The core economic questions revolve around production, distribution, and
consumption of goods and services .
9. Examples of problems that microeconomists might study include:
a) analyzing unemployment trends and business cycles.
b) how firms are contributing to global warming.
c) how much consumers spend in the US economy each year.
d) agricultural price support programs and housing policies such as rent control
programs.
Answer: d
Rationale: The effects of specific policies like agricultural price supports or rent
control on individual markets are classic microeconomic topics .
10. A variable whose value is determined within the economic system being
studied:
a) Endogenous
b) Exogamous
c) Constrained
d) Continuous
, Answer: a
Rationale: This is the formal definition of an endogenous variable. It is determined
inside the model.
11. In general, economics is the study of:
a) the allocation of scarce wants to unlimited resources.
b) the allocation scarce resources to unlimited wants.
c) the allocation of resources between the government and the private sector.
d) the allocation of workers between firms.
Answer: b
Rationale: This captures the fundamental economic problem: unlimited human
wants vs. limited resources.
12. Identifying the appropriate way to allocate an economy's resources is an
example of:
a) a constrained optimization problem.
b) a comparative statics problem.
c) an equilibrium analysis.
d) marginal analysis.
Answer: a
Rationale: Resource allocation is a classic example of constrained optimization
where a society (or planner) aims to maximize welfare given its resource
constraints.
Chapter 2: Supply and Demand Analysis
13. A relationship that shows the quantity of goods that consumers are willing
to buy at different prices is the:
a) elasticity
b) market demand curve
c) market supply curve
d) market equilibrium
Braeutigam | Complete 2027 Guide
Chapter 1: Analyzing Economic Problems
1. The analytical tools underlying nearly all microeconomic studies are:
a) unconstrained optimization and comparative statics.
b) comparative statics and game theory.
c) opportunity cost and equilibrium analysis.
d) constrained optimization, equilibrium analysis, and comparative statics.
Answer: d
Rationale: Most microeconomic models analyze how agents make optimal choices
under constraints (constrained optimization), how these choices balance out in a
system (equilibrium analysis), and how outcomes change when underlying
conditions shift (comparative statics).
2. Economics is often described as:
a) The science of choice.
b) The science of constrained choice.
c) The science of supply and demand.
d) The science of market forces.
Answer: b
Rationale: This definition highlights the core economic problem: because
resources are scarce, individuals and societies cannot have everything they want
and must make choices within these limits.
3. Microeconomics examines:
a) the economic behavior of an entire nation.
b) the economic behavior of individual economic decision units.
c) topics such as national income and inflation.
d) monetary policy.
,Answer: b
Rationale: Microeconomics focuses on the actions of individual agents like
consumers, workers, and firms. Macroeconomics deals with the overall economy.
4. An endogenous variable is:
a) a variable that an economic agent chooses.
b) consumption, investment or government spending.
c) a variable determined within the economic system being studied.
d) a variable pertaining to the home country economy.
Answer: c
Rationale: Endogenous variables are the outcomes of the model, explained by the
model itself. Exogenous variables are external factors taken as given.
5. An example of a constraint is:
a) a limitation on the production of automobiles.
b) a maximum size.
c) the maximum budget associated with research and development.
d) all of the above.
Answer: b
Rationale: A constraint is a boundary that limits the available options, such as a
maximum size, budget, or time. While 'all of the above' is tempting, the source
specifically identifies 'a maximum size' as the correct example .
6. Equilibrium is a condition where:
a) all economic variables are equal.
b) a system will continue indefinitely as long as all given factors are unchanged.
c) a system will change in the short run as long as all given factors are unchanged.
d) economic variables will change over time.
Answer: b
Rationale: Equilibrium is a state of balance where there is no inherent tendency
for change. The system will remain in this state unless an external factor is altered.
7. Economics is the study of _____.
a) the allocation of money
,b) changes in supply and demand
c) the allocation of scarce resources
d) the increase in prices
Answer: c
Rationale: This is the most fundamental definition of economics: the study of how
societies allocate scarce resources to satisfy unlimited wants.
8. Questions economists might ask include all of the following except:
a) What goods and services will be produced, and in what quantities?
b) Who will produce the goods and services, and how?
c) How will weather patterns affect the quality of life in the United States?
d) Who will receive the goods and services that are produced?
Answer: c
Rationale: This question is more related to climatology or environmental science.
The core economic questions revolve around production, distribution, and
consumption of goods and services .
9. Examples of problems that microeconomists might study include:
a) analyzing unemployment trends and business cycles.
b) how firms are contributing to global warming.
c) how much consumers spend in the US economy each year.
d) agricultural price support programs and housing policies such as rent control
programs.
Answer: d
Rationale: The effects of specific policies like agricultural price supports or rent
control on individual markets are classic microeconomic topics .
10. A variable whose value is determined within the economic system being
studied:
a) Endogenous
b) Exogamous
c) Constrained
d) Continuous
, Answer: a
Rationale: This is the formal definition of an endogenous variable. It is determined
inside the model.
11. In general, economics is the study of:
a) the allocation of scarce wants to unlimited resources.
b) the allocation scarce resources to unlimited wants.
c) the allocation of resources between the government and the private sector.
d) the allocation of workers between firms.
Answer: b
Rationale: This captures the fundamental economic problem: unlimited human
wants vs. limited resources.
12. Identifying the appropriate way to allocate an economy's resources is an
example of:
a) a constrained optimization problem.
b) a comparative statics problem.
c) an equilibrium analysis.
d) marginal analysis.
Answer: a
Rationale: Resource allocation is a classic example of constrained optimization
where a society (or planner) aims to maximize welfare given its resource
constraints.
Chapter 2: Supply and Demand Analysis
13. A relationship that shows the quantity of goods that consumers are willing
to buy at different prices is the:
a) elasticity
b) market demand curve
c) market supply curve
d) market equilibrium
