Table of Contents:
1. Introduction
2. Supply and Demand
3. Applying the Supply-and-Demand Model
4. Consumer Choice
5. Applying Consumer Theory
6. Firms and Production
7. Costs
8. Competitive Firms and Markets
9. Applying the Competitive Model
10 General Equilibrium and Economic Welfare
11 Monopoly
12 Pricing and Advertising
13 Oligopoly and Monopolistic Competition
,CHAPTER 1 h Introduction
MULTIPLE hCHOICE.
Choose hthe hone halternative hthat hbest hcompletes hthe hstatement hor hanswers hthe hquestion.
1) Microeconomics hstudies hthe hallocation hof
A) decision hmakers.
B) scarce hresources.
C) models.
D) unlimited hresources.
Answer: hB
hDiff: h0
Topic: hThe hAllocation hof hScarce hResources
2) Microeconomics his hoften hcalled
A) price htheory.
B) decision hscience.
C) scarcity.
D) resource htheory.
Answer: hA
hDiff: h0
Topic: hThe hAllocation hof hScarce hResources
3) Society hfaces htrade-offs hbecause hof
A) government hregulations.
B) greedy hcorporations.
C) faceless hbureaucrats.
D) scarcity.
Answer: hD
hDiff: h0
Topic: hThe hAllocation hof hScarce hResources
4) The hOregon hHealth hCare hPlan his han hexample hof hhow hpolicy hmakers hcope hwith
A) scarcity hof hmedical htreatment.
B) scarcity hof hpatients.
C) scarcity hof hpolicy hmakers.
D) answering hthe hquestion hof hhow hto hproduce.
Answer: hA
hDiff: h0
Topic: hThe hAllocation hof hScarce hResources
5) The hpurpose hof hmaking hassumptions hin heconomic hmodel hbuilding his hto
A) force hthe hmodel hto hyield hthe hcorrect hanswer.
B) minimize hthe hamount hof hwork han heconomist hmust hdo.
, C) simplify hthe hmodel hwhile hkeeping himportant hdetails.
D) express hthe hrelationship hmathematically.
Answer: hC
hDiff: h0
Topic: hModels
6) If ha hmodel's hpredictions hare hcorrect, hthen
A) its hassumptions hmust hhave hbeen hcorrect.
B) it his hproven hto hbe hcorrect.
C) BothhAhand hB habove.
D) None hof hthe habove.
Answer: hD
hDiff: h0
Topic: hModels
7) Economists htend hto hjudge ha hmodel hbased hupon
A) the hreality hof hits hassumptions.
B) the haccuracy hof hits hpredictions.
C) its hsimplicity.
D) its hcomplexity.
Answer: hB
hDiff: h0
Topic: hModels
8) Most hmicroeconomic hmodels hassume hthat hdecision hmakers hwish hto
A) make hthemselves has hwell hoff has hpossible.
B) act hselfishly.
C) not hcooperate hwith hothers.
D) None hof hthe habove.
Answer: hA
hDiff: h0
Topic: hModels
9) Which hof hthe hfollowing his han hexample hof ha hnormative hstatement?
A) Ahhigher hprice hfor ha hgood hcauses hpeople hto hwant hto hbuy hless hof hthat hgood.
B) Ahlower hprice hfor ha hgood hcauses hpeople hto hwant hto hbuy hmore hof hthat hgood.
C) To hmake hthe hgood havailable hto hmore hpeople, ha hlower hprice hshould hbe hset.
D) If hyou hconsume hthis hgood, hyou hwill hbe hbetter hoff.
Answer: hC
, Diff: h0
Topic: hModels
10) Which hof hthe hfollowing his han hexample hof ha hnormative hstatement?
A) Since hthis hgood his hbad hfor hyou, hyou hshould hnot hconsume hit.
B) This hgood his hbad hfor hyou.
C) If hyou hconsume hthis hgood, hyou hwill hget hsick.
D) People husually hget hsick hafter hconsuming hthis hgood.
Answer: hA
hDiff: h0
Topic: hModels
11) Which hof hthe hfollowing his han hexample hof ha hpositive hstatement?
A) Since hthis hgood his hbad hfor hyou, hyou hshould hnot hconsume hit.
B) If hthis hgood his hbad hfor hyou, hyou hshould hnot hconsume hit.
C) If hyou hconsume hthis hgood, hyou hwill hget hsick.
D) None hof hthe habove.
Answer: hC
hDiff: h0
Topic: hModels
1. Introduction
2. Supply and Demand
3. Applying the Supply-and-Demand Model
4. Consumer Choice
5. Applying Consumer Theory
6. Firms and Production
7. Costs
8. Competitive Firms and Markets
9. Applying the Competitive Model
10 General Equilibrium and Economic Welfare
11 Monopoly
12 Pricing and Advertising
13 Oligopoly and Monopolistic Competition
,CHAPTER 1 h Introduction
MULTIPLE hCHOICE.
Choose hthe hone halternative hthat hbest hcompletes hthe hstatement hor hanswers hthe hquestion.
1) Microeconomics hstudies hthe hallocation hof
A) decision hmakers.
B) scarce hresources.
C) models.
D) unlimited hresources.
Answer: hB
hDiff: h0
Topic: hThe hAllocation hof hScarce hResources
2) Microeconomics his hoften hcalled
A) price htheory.
B) decision hscience.
C) scarcity.
D) resource htheory.
Answer: hA
hDiff: h0
Topic: hThe hAllocation hof hScarce hResources
3) Society hfaces htrade-offs hbecause hof
A) government hregulations.
B) greedy hcorporations.
C) faceless hbureaucrats.
D) scarcity.
Answer: hD
hDiff: h0
Topic: hThe hAllocation hof hScarce hResources
4) The hOregon hHealth hCare hPlan his han hexample hof hhow hpolicy hmakers hcope hwith
A) scarcity hof hmedical htreatment.
B) scarcity hof hpatients.
C) scarcity hof hpolicy hmakers.
D) answering hthe hquestion hof hhow hto hproduce.
Answer: hA
hDiff: h0
Topic: hThe hAllocation hof hScarce hResources
5) The hpurpose hof hmaking hassumptions hin heconomic hmodel hbuilding his hto
A) force hthe hmodel hto hyield hthe hcorrect hanswer.
B) minimize hthe hamount hof hwork han heconomist hmust hdo.
, C) simplify hthe hmodel hwhile hkeeping himportant hdetails.
D) express hthe hrelationship hmathematically.
Answer: hC
hDiff: h0
Topic: hModels
6) If ha hmodel's hpredictions hare hcorrect, hthen
A) its hassumptions hmust hhave hbeen hcorrect.
B) it his hproven hto hbe hcorrect.
C) BothhAhand hB habove.
D) None hof hthe habove.
Answer: hD
hDiff: h0
Topic: hModels
7) Economists htend hto hjudge ha hmodel hbased hupon
A) the hreality hof hits hassumptions.
B) the haccuracy hof hits hpredictions.
C) its hsimplicity.
D) its hcomplexity.
Answer: hB
hDiff: h0
Topic: hModels
8) Most hmicroeconomic hmodels hassume hthat hdecision hmakers hwish hto
A) make hthemselves has hwell hoff has hpossible.
B) act hselfishly.
C) not hcooperate hwith hothers.
D) None hof hthe habove.
Answer: hA
hDiff: h0
Topic: hModels
9) Which hof hthe hfollowing his han hexample hof ha hnormative hstatement?
A) Ahhigher hprice hfor ha hgood hcauses hpeople hto hwant hto hbuy hless hof hthat hgood.
B) Ahlower hprice hfor ha hgood hcauses hpeople hto hwant hto hbuy hmore hof hthat hgood.
C) To hmake hthe hgood havailable hto hmore hpeople, ha hlower hprice hshould hbe hset.
D) If hyou hconsume hthis hgood, hyou hwill hbe hbetter hoff.
Answer: hC
, Diff: h0
Topic: hModels
10) Which hof hthe hfollowing his han hexample hof ha hnormative hstatement?
A) Since hthis hgood his hbad hfor hyou, hyou hshould hnot hconsume hit.
B) This hgood his hbad hfor hyou.
C) If hyou hconsume hthis hgood, hyou hwill hget hsick.
D) People husually hget hsick hafter hconsuming hthis hgood.
Answer: hA
hDiff: h0
Topic: hModels
11) Which hof hthe hfollowing his han hexample hof ha hpositive hstatement?
A) Since hthis hgood his hbad hfor hyou, hyou hshould hnot hconsume hit.
B) If hthis hgood his hbad hfor hyou, hyou hshould hnot hconsume hit.
C) If hyou hconsume hthis hgood, hyou hwill hget hsick.
D) None hof hthe habove.
Answer: hC
hDiff: h0
Topic: hModels
