Test bank for Principles of Microeconomics Test Item File 2 Ninth Edition by Case/Fair/Oster

Test Item File to Accompany
HY HY HY HY




Principles of HY




HY MicroeconomicsTes H
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t Item File 2
HY HY HY




Ninth Edition
HY




by
HY




HY Case/Fair/Oste

r




Prentice Hall HY

,Contents
Chapter HY1 The HYScope HYand HYMethod HYof HYEconomics 1
Chapter HY2 The HYEconomic HYProblem: HYScarcity HYand HYChoice 29
Chapter HY3 Demand, HYSupply, HYand HYMarket HYEquilibrium 55
Chapter HY4 Demand HYand HYSupply HYApplications 98
Chapter HY5 Elasticity 117
Chapter HY6 Household HYBehavior HYand HYConsumer HYChoice 135
Chapter HY7 The HYProduction HYProcess: HYThe HYBehavior HYof HYProfit-Maximizing 171
HYFirms


Chapter HY8 Short-Run HYCosts HYand HYOutput HYDecisions 207
Chapter HY9 Long-Run HYCosts HYand HYOutput HYDecisions 252
Chapter HY10 Input HYDemand: HYThe HYLabor HYand HYLand HYMarkets 292
Chapter HY11 Input HYDemand: HYThe HYCapital HYMarkets HYand HYInvestment 323
HYDecision


Chapter HY12 General HYEquilibrium HYand HYthe HYEfficiency HYof HYPerfect 348
HYCompetition


Chapter HY13 Monopoly HYand HYAntitrust HYPolicy 377
Chapter HY14 Oligopoly 425
Chapter HY15 Monopolistic HYCompetition 449
Chapter HY16 Externalities, HYPublic HYGoods, HYImperfect
HYInformation, Hand HYSocial HYChoice
Y 476
Chapter HY17 Uncertainty HYand HYAsymmetric HYInformation 517
Chapter HY18 Income HYDistribution HYand HYPoverty 535
Chapter HY19 Public HYFinance: HYThe HYEconomics HYof HYTaxation 563
Chapter HY20 International HYTrade, HYComparative HYAdvantage, HYand HYProtectionism 592
Chapter HY21 Economic HYGrowth HYin HYDeveloping HYand HYTransitional HYEconomies 628

,Chapter 1 The Scope and Method of Economics
HY HY HY HY HY HY




1.1 Why HYStudy HYEconomics?
1 Multiple H Y Choice

1) The H Y reasons H Y to H Y study H Y economics H Y include H Y which H Y of H Y the H Y following?
A) to HYbe HYan HYinformed HYvoter B) H Y to H Y understand H Y society H Y and H Y global
H Y affairs

C) HY to HYlearn HYa HYway HYof HYthinking D) HYall HYof HYthe
HYabove HYAnswer: HY D
Diff: HY1
Topic: H Y Why HYStudy
HYEconomics?HYSkill: H Y Fact



2) Marginalism H Y is
A) the HY best HY alternative H Y that H Y we H Y forego HY when HY making H Y a H Y decision.
B) the HYstudy HYof HYhow HYsocieties HYchoose HYto HYuse HYscarce HYresources.
C) a H Y market H Y situation H Y in H Y which H Y profit H Y opportunities H Y are H Y eliminated H Y almost
H Y instantaneously.

D) the H Y process H Y of H Y analyzing H Y the H Y additional H Y costs H Y or H Y benefits H Y arising
HY from H Y a H Y decision.HYAnswer: HY D
Diff: HY1
Topic: H Y Why HYStudy
HYEconomics?HYSkill:

H Y Definition



3) Economics HYis HYbest HYdefined HYas HYthe HYstudy HYof
A) financial H Y decision-making.
B) how H Y consumers H Y make H Y purchasing H Y decisions.
C) choices H Y made H Y by H Y people H Y faced H Y with H Y scarcity.
D) inflation, H Y unemployment, H Y and H Y economic
HY growth.HYAnswer: HY C
Diff: HY2
Topic: H Y Why HYStudy
HYEconomics?HYSkill:

H Y Definition



4) The HYIndustrial HYRevolution HYrefers HYto HYthe HYrise HYof HYthe HYmodern HYfactory HYsystem HYin
duringHYthe HYlate HYeighteenth HYand HYearly HYnineteenth HYcenturies.
A) the HYUnited HYStates B) HYEngland
C) HY France D) HYGermany
Answer: H Y B
Diff: HY1
Topic: H Y Why HYStudy
HYEconomics?HYSkill: H Y Fact




1

, 5) Which H Y of H Y the H Y following H Y statements H Y is H Y correct?
A) Economics HY is H Y a H Y natural H Y science.
B) In HY large H Y measure, H Y economics H Y is H Y the H Y study HY of H Y how H Y people H Y make HY choices.
C) If H Y poverty H Y was H Y eliminated H Y there H Y would HY be H Y no H Y reason H Y to H Y study HY economics.
D) Economic H Y analysis H Y can H Y be H Y used H Y to H Y explain H Y how H Y societies, H Y but H Y not
H Y individuals, H Y makeHYdecisions.


Answer: H Y B
Diff: HY1
Topic: H Y Why HYStudy
HYEconomics?HYSkill: H Y Fact



6) Economics HYis HYthe HYstudy HYof
A) how HYto HYinvest HYin HYthe HYstock HYmarket.
B) how H Y society H Y uses H Y limited H Y resources.
C) the HYrole HYof HYmoney HYin HYmarkets.
D) how H Y government H Y officials H Y decide H Y which H Y goods H Y and H Y services
HY are H Y produced.HYAnswer: HY B
Diff: HY2
Topic: H Y Why HYStudy
HYEconomics?HYSkill:

H Y Definition



7) Costs H Y that H Y cannot H Y be HY avoided, H Y because H Y they H Y have H Y already H Y been HY incurred H Y are
H Y known H Y as

A) differential HYcosts. B) HYmarginal HYcosts.
C) HY opportunity HYcosts. D) HYsunk
HYcosts.HYAnswer: HY D
Diff: HY2
Topic: H Y Why HYStudy
HYEconomics?HYSkill:

H Y Definition



8) Suppose HYthat HYtwo HYweeks HYago HYyou HYpurchased HYa HYticket HYto HYthe HYsymphony HYfor
HY$40. HYLast HY week HYsomeone HYinvited HYyou HYto HYgo HYcamping HYon HYthe HYsame HYnight

HYas HYthe HYsymphony HYconcert. HYYou HYwould HYmuch HYrather HYgo HYcamping HYthan HYgo HYto

HYthe HYsymphony. HYYou HYhave HYtried HYunsuccessfully HYto HYsell HYthe HYsymphony H Y concert

H Y ticket. H Y Which H Y of H Y the H Y following H Y statements H Y regarding H Y this H Y situation H Y is

H Y correct?

A) The H Y $40 H Y symphony H Y ticket H Y should H Y be H Y irrelevant H Y in H Y your H Y decision
H Y making, H Y because H Y itHYrepresents HYthe HYmarginal HYcost HYof HYgoing HYcamping.

B) The H Y $40 H Y you H Y paid HY for H Y the H Y symphony H Y ticket H Y should H Y be H Y irrelevant HY in
H Y your H Y decision H Y making,HYbecause HYit HYis HYa HYsunk HYcost.

C) The HY$40 HYyou HYpaid HYfor HYthe HYsymphony HYticket HYis HYrelevant HYto HYthe HYdecision,
HYas HYthis HYrepresents HYthe HYopportunity HYcost HYof HYgoing HYcamping.

D) You HY should H Y base H Y your H Y decision H Y on H Y whether H Y or H Y not HY going HY camping
H Y will H Y provide H Y you HY withHYmore HYthan HY$40 HYin HYsatisfaction.


Answer: H Y B
Diff: HY2
Topic: H Y Why HYStudy
HYEconomics?HYSkill:

H Y Conceptual

AACSB: H Y Reflective HYThinking


2