Test Bank L
PrinciplesofMicroeconomics
L L
FOURTH EDITION L
N. Gregory Mankiw
L L
Harvard University
L
Prepared by L
Daniel K. Biederman
L L
University of North Dakota
L L L
Kenneth H. Brown L L
University of Northern Iowa
L L L
Lisa K. Jepsen
L L
University of Northern Iowa
L L L
Bryce Kanago L
University of Northern Iowa
L L L
Ken McCormick
L
University of Northern Iowa
L L L
, TestLBank
PrinciplesLofLMicroeconomics,L4thLEdition
N.LGregoryLMankiw
PreparedLby
DanielLK.LBiederman,LKennethLH.LBrown,LLisaLK.LJepsen,LBryceLKanago,LandLKenLMcCormick.
VP/EditorialLDirector: Sr.LProductionLProjectLManager: AssistantLEditor:
JackLW.LCalhoun EmilyLS.LGross ErinLBerger
Editor-in-Chief: ManagerLofLTechnology,LEditorial:
AncillaryLCoordinator:
AlexLvonLRosenberg VickyLTrue
ErinLM.LDonohoe
Publisher: TechnologyLProjectLEditor:
SteveLMomper DanaLCowden ArtLDirector:
MichelleLKunkler
Sr.LAcquisitionsLEditor:
MikeLWorls WebLCoordinator: ProductionLArtist:
KarenLSchaffer PattiLHudepohl
DevelopmentalLEditor:
JaneLTufts Sr.LManufacturingLCoordinator: InternalLandLCoverLDesigner:
SandeeLMilewski StrattonLDesign
ContributingLEditors:
SarahLK.LDorger ProductionLHouse: CoverLIllustration:
LJenniferLE.LBak TateLGallery,LLondon/ArtLResource,LNY
OffCenterLConceptLHouse
er
Printer:LGlobu InternalLIllustrator:
Sr.LMarketingLManager: sLPrintingLMinst WilliamLLow/CobaltLIllustrationLServices
BrianLJoyner er,LOH
Assoc.LMarketingLCommunication
sLManager:
SarahLGreber
COPYRIGHTL©L2007 ALLLRIGHTSLRESERVED.LNoLpartLof ForLpermissionLtoLuseLmaterialLfromLthi
ThomsonLSouth- thisLworkLcoveredLbyLtheLcopyrightLh sLtextLorLproduct,LsubmitLaLrequestLonlin
Western,LaLpartLofLTheLThomsonLCorpo ereonLmayLbeLreproducedLorLusedLinL eLatLhttp://www.thomsonrights.com.
ration.LThomson,LtheLStarLlogo,LandLSo anyLformLorLbyLanyLmeans—
uth- graphic,Lelectronic,LorLmechanical,Lin ForLmoreLinformationLaboutLou
WesternLareLtrademarksLusedLhereinLu cludingLphotocopying,Lrecording,Ltapi rLproducts,LcontactLusLat:
nderLlicense. ng,LWebLdistribution,LinformationLstor
ageLandLretrievalLsystems,LorLinLanyL ThomsonLLearningLAcademicLResourc
PrintedLinLtheLUnitedLStatesLofLAmericaL otherLmanner— eLCenter
1L 2LL3LL4L 5LL09LL08LL07L 06 exceptLasLmayLbeLpermittedLbyLtheLlic 1-800-423-0563
enseLtermsLherein.
ISBNL0-324-31895-2 ThomsonLHigherLEducation
5191LNatorpLBoulevard
Mason,LOHL45040L
USA
,Contents
Preface v
ChapterL1LTenLPrinciplesLofLEconomics 1
ChapterL2LThinkingLLikeLanLEconomist 35
ChapterL3LInterdependenceLandLtheLGainsLfromLTrade 80
ChapterL4LTheLMarketLForcesLofLSupplyLandLDemand 117
ChapterL5LElasticityLandLItsLApplications 169
ChapterL6LSupply,LDemand,LandLGovernmentLPolicies 217
ChapterL7LConsumers,LProducers,LandLtheLEfficiencyLofLMarkets 261
ChapterL8LApplication:LTheLCostsLofLTaxation 305
ChapterL9LApplication:LInternationalLTrade 345
ChapterL10LExternalities 389
ChapterL11LPublicLGoodsLandLCommonLResources 435
ChapterL12LTheLDesignLofLtheLTaxLSystem 474
ChapterL13LTheLCostsLofLProduction 522
ChapterL14LFirmsLinLCompetitiveLMarkets 574
ChapterL15LMonopoly 621
ChapterL16LOligopoly 674
ChapterL17LMonopolisticLCompetition 726
ChapterL18LTheLMarketsLforLtheLFactorsLofLProduction 769
ChapterL19LEarningsLandLDiscrimination 814
ChapterL20LIncomeLInequalityLandLPoverty 858
ChapterL21LTheLTheoryLofLConsumerLChoice 898
ChapterL22LFrontiersLofLMicroeconomics 946
iii
,
PrinciplesofMicroeconomics
L L
FOURTH EDITION L
N. Gregory Mankiw
L L
Harvard University
L
Prepared by L
Daniel K. Biederman
L L
University of North Dakota
L L L
Kenneth H. Brown L L
University of Northern Iowa
L L L
Lisa K. Jepsen
L L
University of Northern Iowa
L L L
Bryce Kanago L
University of Northern Iowa
L L L
Ken McCormick
L
University of Northern Iowa
L L L
, TestLBank
PrinciplesLofLMicroeconomics,L4thLEdition
N.LGregoryLMankiw
PreparedLby
DanielLK.LBiederman,LKennethLH.LBrown,LLisaLK.LJepsen,LBryceLKanago,LandLKenLMcCormick.
VP/EditorialLDirector: Sr.LProductionLProjectLManager: AssistantLEditor:
JackLW.LCalhoun EmilyLS.LGross ErinLBerger
Editor-in-Chief: ManagerLofLTechnology,LEditorial:
AncillaryLCoordinator:
AlexLvonLRosenberg VickyLTrue
ErinLM.LDonohoe
Publisher: TechnologyLProjectLEditor:
SteveLMomper DanaLCowden ArtLDirector:
MichelleLKunkler
Sr.LAcquisitionsLEditor:
MikeLWorls WebLCoordinator: ProductionLArtist:
KarenLSchaffer PattiLHudepohl
DevelopmentalLEditor:
JaneLTufts Sr.LManufacturingLCoordinator: InternalLandLCoverLDesigner:
SandeeLMilewski StrattonLDesign
ContributingLEditors:
SarahLK.LDorger ProductionLHouse: CoverLIllustration:
LJenniferLE.LBak TateLGallery,LLondon/ArtLResource,LNY
OffCenterLConceptLHouse
er
Printer:LGlobu InternalLIllustrator:
Sr.LMarketingLManager: sLPrintingLMinst WilliamLLow/CobaltLIllustrationLServices
BrianLJoyner er,LOH
Assoc.LMarketingLCommunication
sLManager:
SarahLGreber
COPYRIGHTL©L2007 ALLLRIGHTSLRESERVED.LNoLpartLof ForLpermissionLtoLuseLmaterialLfromLthi
ThomsonLSouth- thisLworkLcoveredLbyLtheLcopyrightLh sLtextLorLproduct,LsubmitLaLrequestLonlin
Western,LaLpartLofLTheLThomsonLCorpo ereonLmayLbeLreproducedLorLusedLinL eLatLhttp://www.thomsonrights.com.
ration.LThomson,LtheLStarLlogo,LandLSo anyLformLorLbyLanyLmeans—
uth- graphic,Lelectronic,LorLmechanical,Lin ForLmoreLinformationLaboutLou
WesternLareLtrademarksLusedLhereinLu cludingLphotocopying,Lrecording,Ltapi rLproducts,LcontactLusLat:
nderLlicense. ng,LWebLdistribution,LinformationLstor
ageLandLretrievalLsystems,LorLinLanyL ThomsonLLearningLAcademicLResourc
PrintedLinLtheLUnitedLStatesLofLAmericaL otherLmanner— eLCenter
1L 2LL3LL4L 5LL09LL08LL07L 06 exceptLasLmayLbeLpermittedLbyLtheLlic 1-800-423-0563
enseLtermsLherein.
ISBNL0-324-31895-2 ThomsonLHigherLEducation
5191LNatorpLBoulevard
Mason,LOHL45040L
USA
,Contents
Preface v
ChapterL1LTenLPrinciplesLofLEconomics 1
ChapterL2LThinkingLLikeLanLEconomist 35
ChapterL3LInterdependenceLandLtheLGainsLfromLTrade 80
ChapterL4LTheLMarketLForcesLofLSupplyLandLDemand 117
ChapterL5LElasticityLandLItsLApplications 169
ChapterL6LSupply,LDemand,LandLGovernmentLPolicies 217
ChapterL7LConsumers,LProducers,LandLtheLEfficiencyLofLMarkets 261
ChapterL8LApplication:LTheLCostsLofLTaxation 305
ChapterL9LApplication:LInternationalLTrade 345
ChapterL10LExternalities 389
ChapterL11LPublicLGoodsLandLCommonLResources 435
ChapterL12LTheLDesignLofLtheLTaxLSystem 474
ChapterL13LTheLCostsLofLProduction 522
ChapterL14LFirmsLinLCompetitiveLMarkets 574
ChapterL15LMonopoly 621
ChapterL16LOligopoly 674
ChapterL17LMonopolisticLCompetition 726
ChapterL18LTheLMarketsLforLtheLFactorsLofLProduction 769
ChapterL19LEarningsLandLDiscrimination 814
ChapterL20LIncomeLInequalityLandLPoverty 858
ChapterL21LTheLTheoryLofLConsumerLChoice 898
ChapterL22LFrontiersLofLMicroeconomics 946
iii
,
