Test Bank for
Microeconomic Randy Methenitis
statutory law.Critical Thinking: Law students must think critically about the ethical implications of legal decisions and analyze the potential consequences of ls for
applying
Microeconomics
Ninth Edition
R. Glenn Hubbard
Anthony Patrick O’Brien
exams include:Multiple Choice Questions (MCQs): These are frequently used to assess students’ understanding of business terminology, theories, and principles.Case Studies: A staple of business exams,
case studies present students with real-world business scenarios and ask them to apply their knowledge to solve complex problems. Case studies evaluate students' ability to think critically and make
strategic decisions.Essay/Short Answer Questions: These types of questions test the student’s ability to explain and analyze business concepts in a detailed and coherent manner.1.3. Skills Tested in
Business statutory law.Critical Thinking: Law students must think critically about the ethical implications of legal decisions and analyze the potential consequences of ls for applying
, Chapter 1 Economics: Foundations and Models
1.1 Three Key Economic Ideas
1) Apple assembles most iPhones in China and India because the lower wages earned by Chinese and
Indian workers and their experience in electronics manufacturing reduce the costs of assembling iPhones.
This is an example of Apple reacting to which of the three key economic ideas?
A) People are rational.
B) People respond to economic incentives.
C) Optimal decisions are made at the margin.
D) Firms attempt to maximize revenues.
Answer: B
Diff: 2
Topic: Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to think like an
economist
AACSB: Analytical thinking
Special Feature: Chapter Opener: Should Apple Manufacture the iPhone in the United States?
exams include:Multiple Choice Questions (MCQs): These are frequently used to assess students’ understanding of business terminology, theories, and principles.Case Studies: A staple of business exams,
case studies statutory law.Critical Thinking: Law students must think critically about the ethical implications of legal decisions and analyze the potential consequences of ls for applying. Students
are encouraged to study theories and frameworks but also to keep up-to-date with current business trends. Case studies from leading businesses can be helpful, as they illustrate how business concepts
are applied in real-world scenarios. Group discussions and practicing sample case studies can aid in refining analytical skills.________________________________________2. Law Exams2.1. Overview of
Law
2) In economics, choices must be made because we live in a world of
A) unemployment.
B) scarcity.
C) greed.
D) unlimited resources.
Answer: B
Diff: 1
Topic: Scarcity
*: Recurring
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to think like an
economist
AACSB: Analytical thinking
3) Which of the following statements about scarcity is true?
A) Scarcity refers to the situation in which unlimited wants exceed limited resources.
B) Scarcity is not a problem for the wealthy.
C) Scarcity is only a problem when a country has too large a population.
D) Scarcity only arises when there is a wide disparity in income distribution.
Answer: A
Diff: 1
Topic: Scarcity
*: Recurring
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to think like an
economist
AACSB: Analytical thinking
4) The basic economic problem of has always existed and will continue to exist.
A) scarcity
2
, B) efficiency
C) inflation
D) recession
Answer: A
Diff: 1
Topic: Scarcity
*: Recurring
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to think like an
economist
AACSB: Analytical thinking
statutory law.Critical Thinking: Law students must think critically about the ethical implications of legal decisions and analyze the potential consequences of ls for applying understanding of
business principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical application. Students are encouraged to study theories
and frameworks but also to keep up-to-date with current business trends. Case studies from leading businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios.
Group discussions and practicing sample case studies can aid in refining analytical skills.________________________________________2. Law Exams2.1. Overview of Law
5) By definition, economics is the study of
A) how to make money in the stock market.
B) how to make money in a market economy.
C) the choices people make to attain their goals, given their scarce resources.
D) supply and demand.
Answer: C
Diff: 1
Topic: Scarcity
*: Recurring
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to think like an
economist
AACSB: Analytical thinking
6) An economic is a simplified version of some aspect of economic life used to analyze an
economic issue.
A) market
B) trade-off
C) variable
D) model
Answer: D
Diff: 1
Topic: Economic Models
*: Recurring
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to think like an
economist
AACSB: Analytical thinking
3
, 7) Where do economic agents such as individuals, firms, and nations interact with each other?
A) in public locations monitored by the government
B) in any arena that brings together buyers and sellers
C) in any physical location where people can physically get together for selling goods, such as shopping
malls
D) in any location where transactions can be monitored by consumer groups and taxed by the
government
Answer: B
Diff: 1
Topic: Markets
*: Recurring
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to think like an
economist
AACSB: Analytical thinking
exams include:Multiple Choice Questions (MCQs): These are frequently used to assess students’ understanding of business terminology, theories, and principles.Case Studies: A staple of business exams,
statutory law.Critical Thinking: Law students must think critically about the ethical implications of legal decisions and analyze the potential consequences of ls for applying theories and frameworks
but also to keep up-to-date with current business trends. Case studies from leading businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios. Group
discussions and practicing sample case studies can aid in refining analytical skills.________________________________________2. Law Exams2.1. Overview of Law
8) In economics, the term refers to a group of buyers and sellers of a product and the
arrangement by which they come together to trade.
A) collective
B) cooperative
C) market
D) trade-off
Answer: C
Diff: 1
Topic: Markets
*: Recurring
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to think like an
economist
AACSB: Analytical thinking
9) Economists assume that individuals
A) behave in unpredictable ways.
B) will never take actions to help others.
C) prefer to live in a society that values fairness above all else.
D) are rational and respond to incentives.
Answer: D
Diff: 1
Topic: People Are Rational
*: Recurring
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to think like an
economist
AACSB: Analytical thinking
4
Microeconomic Randy Methenitis
statutory law.Critical Thinking: Law students must think critically about the ethical implications of legal decisions and analyze the potential consequences of ls for
applying
Microeconomics
Ninth Edition
R. Glenn Hubbard
Anthony Patrick O’Brien
exams include:Multiple Choice Questions (MCQs): These are frequently used to assess students’ understanding of business terminology, theories, and principles.Case Studies: A staple of business exams,
case studies present students with real-world business scenarios and ask them to apply their knowledge to solve complex problems. Case studies evaluate students' ability to think critically and make
strategic decisions.Essay/Short Answer Questions: These types of questions test the student’s ability to explain and analyze business concepts in a detailed and coherent manner.1.3. Skills Tested in
Business statutory law.Critical Thinking: Law students must think critically about the ethical implications of legal decisions and analyze the potential consequences of ls for applying
, Chapter 1 Economics: Foundations and Models
1.1 Three Key Economic Ideas
1) Apple assembles most iPhones in China and India because the lower wages earned by Chinese and
Indian workers and their experience in electronics manufacturing reduce the costs of assembling iPhones.
This is an example of Apple reacting to which of the three key economic ideas?
A) People are rational.
B) People respond to economic incentives.
C) Optimal decisions are made at the margin.
D) Firms attempt to maximize revenues.
Answer: B
Diff: 2
Topic: Scarcity
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to think like an
economist
AACSB: Analytical thinking
Special Feature: Chapter Opener: Should Apple Manufacture the iPhone in the United States?
exams include:Multiple Choice Questions (MCQs): These are frequently used to assess students’ understanding of business terminology, theories, and principles.Case Studies: A staple of business exams,
case studies statutory law.Critical Thinking: Law students must think critically about the ethical implications of legal decisions and analyze the potential consequences of ls for applying. Students
are encouraged to study theories and frameworks but also to keep up-to-date with current business trends. Case studies from leading businesses can be helpful, as they illustrate how business concepts
are applied in real-world scenarios. Group discussions and practicing sample case studies can aid in refining analytical skills.________________________________________2. Law Exams2.1. Overview of
Law
2) In economics, choices must be made because we live in a world of
A) unemployment.
B) scarcity.
C) greed.
D) unlimited resources.
Answer: B
Diff: 1
Topic: Scarcity
*: Recurring
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to think like an
economist
AACSB: Analytical thinking
3) Which of the following statements about scarcity is true?
A) Scarcity refers to the situation in which unlimited wants exceed limited resources.
B) Scarcity is not a problem for the wealthy.
C) Scarcity is only a problem when a country has too large a population.
D) Scarcity only arises when there is a wide disparity in income distribution.
Answer: A
Diff: 1
Topic: Scarcity
*: Recurring
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to think like an
economist
AACSB: Analytical thinking
4) The basic economic problem of has always existed and will continue to exist.
A) scarcity
2
, B) efficiency
C) inflation
D) recession
Answer: A
Diff: 1
Topic: Scarcity
*: Recurring
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to think like an
economist
AACSB: Analytical thinking
statutory law.Critical Thinking: Law students must think critically about the ethical implications of legal decisions and analyze the potential consequences of ls for applying understanding of
business principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical application. Students are encouraged to study theories
and frameworks but also to keep up-to-date with current business trends. Case studies from leading businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios.
Group discussions and practicing sample case studies can aid in refining analytical skills.________________________________________2. Law Exams2.1. Overview of Law
5) By definition, economics is the study of
A) how to make money in the stock market.
B) how to make money in a market economy.
C) the choices people make to attain their goals, given their scarce resources.
D) supply and demand.
Answer: C
Diff: 1
Topic: Scarcity
*: Recurring
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to think like an
economist
AACSB: Analytical thinking
6) An economic is a simplified version of some aspect of economic life used to analyze an
economic issue.
A) market
B) trade-off
C) variable
D) model
Answer: D
Diff: 1
Topic: Economic Models
*: Recurring
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to think like an
economist
AACSB: Analytical thinking
3
, 7) Where do economic agents such as individuals, firms, and nations interact with each other?
A) in public locations monitored by the government
B) in any arena that brings together buyers and sellers
C) in any physical location where people can physically get together for selling goods, such as shopping
malls
D) in any location where transactions can be monitored by consumer groups and taxed by the
government
Answer: B
Diff: 1
Topic: Markets
*: Recurring
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to think like an
economist
AACSB: Analytical thinking
exams include:Multiple Choice Questions (MCQs): These are frequently used to assess students’ understanding of business terminology, theories, and principles.Case Studies: A staple of business exams,
statutory law.Critical Thinking: Law students must think critically about the ethical implications of legal decisions and analyze the potential consequences of ls for applying theories and frameworks
but also to keep up-to-date with current business trends. Case studies from leading businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios. Group
discussions and practicing sample case studies can aid in refining analytical skills.________________________________________2. Law Exams2.1. Overview of Law
8) In economics, the term refers to a group of buyers and sellers of a product and the
arrangement by which they come together to trade.
A) collective
B) cooperative
C) market
D) trade-off
Answer: C
Diff: 1
Topic: Markets
*: Recurring
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to think like an
economist
AACSB: Analytical thinking
9) Economists assume that individuals
A) behave in unpredictable ways.
B) will never take actions to help others.
C) prefer to live in a society that values fairness above all else.
D) are rational and respond to incentives.
Answer: D
Diff: 1
Topic: People Are Rational
*: Recurring
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to think like an
economist
AACSB: Analytical thinking
4
