INTERMIDIATE MICROECONOMICS 9TH EDITION HAL R. VARIAN THEODORE C. BERGSTROM JAMES E. WEST

TEST BANK FOR INTERMIDIATE MICROECONOMICS 9TH EDITION HAL R. VARIAN THEODORE C. BERGSTROM JAMES E. WEST Preface vii Part I Test Bank Chapter 2 | Budget Constraint 3 Chapter 3 | Preferences 11 Chapter 4 | Utility 17 Chapter 5 | Choice 24 Chapter 6 | Demand 32 Chapter 7 | Revealed Preference 41 Chapter 8 | Slutsky Equation 49 Chapter 9 | Buying and Selling 55 Chapter 10 | Intertemporal Choice 65 Chapter 11 | Asset Markets 72 Chapter 12 | Uncertainty 79 Chapter 13 | Risky Assets 86 Chapter 14 | Consumer’s Surplus 89 Chapter 15 | Market Demand 94 Chapter 16 | Equilibrium 105 Part II Alternative Quizzes Chapter 17 | Measurement 112 Chapter 2 | Budget Constraint 251 Chapter 18 | Auctions 113 Chapter 3 | Preferences 256 Chapter 19 | Technology 119 Chapter 4 | Utility 261 Chapter 20 | Profit Maximization 125 Chapter 5 | Choice 266 Chapter 21 | Cost Minimization 132 Chapter 6 | Demand 270 Chapter 22 | Cost Curves 143 v vi | Contents Chapter 7 | Revealed Preference 275 Chapter 23 | Firm Supply 341 Chapter 8 | Slutsky Equation 280 Chapter 24 | Industry Supply 343 Chapter 9 | Buying and Selling 285 Chapter 25 | Monopoly 348 Chapter 10 | Intertemporal Choice 290 Chapter 26 | Monopoly Behavior 353 Chapter 11 | Asset Markets 294 Chapter 27 | Factor Markets 356 Chapter 12 | Uncertainty 299 Chapter 28 | Oligopoly 360 Chapter 13 | Risky Assets 304 Chapter 29 | Game Theory 365 Chapter 14 | Consumer’s Surplus 306 Chapter 30 | Game Applications 371 Chapter 15 | Market Demand 311 Chapter 31 | Behavioral Economics 377 Chapter 16 | Equilibrium 315 Chapter 32 | Exchange 378 Chapter 17 | Measurement 319 Chapter 33 | Production 384 Chapter 18 | Auctions 320 Chapter 34 | Welfare 389 Chapter 19 | Technology 326 Chapter 35 | Externalities 394 Chapter 20 | Profit Maximization 330 Chapter 36 | Information Technology 399 Chapter 21 | Cost Minimization 333 Chapter 37 | Public Goods 402 Chapter 22 | Cost Curves 337 Chapter 38 | Asymmetric Information 406 The second part of this volume consists of alternative quiz- zes for the multiple-choice questions in Bergstrom and Var- ian’s Workouts in Intermediate Microeconomics. These questions use new parameters and scrambled responses so that an instructor can use them as a quiz or for more formal graded examinations. A computerized version of this Test Bank is available at no charge to any instructor who adopts Hal Varian’s Inter- mediate Microeconomics, Ninth Edition by contacting your local representative at or . vii PART I: TEST BANK CHAPTER 2 Budget Constraint TRUE/FALSE 1. If there are two goods with positive prices and the price of one good is reduced, while income and other prices remain constant, then the size of the budget set is reduced. ANS: F DIF: 1 2. If good 1 is measured on the horizontal axis and good 2 is measured on the vertical axis and if the price of good 1 is p1 and the price of good 2 is p2, then the slope of the budget line is −p2 /p1. ANS: F DIF: 1 3. If all prices are doubled and money income is left the same, the budget set does not change because relative prices do not change. ANS: F DIF: 1 4. If there are two goods and if one good has a negative price and the other has a positive price, then the slope of the budget line will be positive. ANS: T DIF: 1 5. If all prices double and income triples, then the budget line will become steeper. ANS: F DIF: 1 6. If good 1 is on the horizontal axis and good 2 is on the vertical axis, then an increase in the price of good 1 will not change the horizontal intercept of the budget line. ANS: F DIF: 1 7. If there are two goods and the prices of both goods rise, then the budget line must become steeper. ANS: F DIF: 1 8. There are two goods. You know how much of good 1 a consumer can afford if she spends all of her income on good 1. If you knew the ratio of the prices of the two goods, then you could draw the consumer’s budget line without any more information. ANS: T DIF: 1 9. A consumer prefers more to less of every good. Her income rises, and the price of one of the goods falls while other prices stay constant. These changes must have made her better off. ANS: T DIF: 1 10. There are 3 goods. The price of good 1 is −1, the price of good 2 is +1, and the price of good 3 is +2. It is physically possible for a consumer to consume any commodity bundle with nonnegative amounts of each good. A consumer who has an income of 10 could afford to consume some commodity bundles that include 5 units of good 1 and 6 units of good 2. ANS: T DIF: 2 11. A decrease in income pivots the budget line around the bundle initially consumed. ANS: F DIF: 1