Test Bank for Microeconomics and Behavior
Chapter 01
1) Microeconomics is primarily the study of how
A) the stock market works.
B) people choose among alternatives.
C) businesses can make money.
D) the economy functions as a whole.
2) Microeconomics is primarily the study of how
A) interest rates affect the unemployment rate.
B) people choose under conditions of scarcity.
C) policy makers should respond to an economic crisis.
D) the economy functions as a whole.
3) If you are at an all-you-can-eat buffet dinner and you are considering whether to eat another
dessert, you, as a rational consumer should decide to eat the desert
A) if it brings you any pleasure at all.
B) if it brings you more pleasure than the price you paid for the meal.
C) if it brings you as much pleasure as the desert costs if it is ordered a la carte.
D) no matter what because you want to get more for your money.
4) Say your girlfriend has received two free tickets to the Sunday movie matinee and she wants
you to go with her. Nevertheless, the movie plays at the same time you were planning to
watch the football game on the TV. As a rational person you should decide to go to the
movie
A) always, since the tickets were free.
B) only if you would gain some pleasure from it.
C) only if the pleasure you will gain from it outweighs the pleasure you would gain from
watching the football game.
D) only if it brings you more pleasure than the cost of the tickets.
5) Say your girlfriend has received two free tickets to the Sunday movie matinee and she wants
you to go with her. Nevertheless, the movie plays at the same time you were planning to
watch a football game on the TV. You should decide to go to the movie
A) always, since the tickets were free.
B) if it’s not a really big game.
C) if the overall benefits of going exceed those of watching the football game.
D) if it keeps the peace in your relationship.
1
,Test Bank for Microeconomics and Behavior
Chapter 01
6) The reservation price of good X is
A) the market price for a good.
B) any price above what you would be willing to pay for the good.
C) the price at which one would be indifferent between good X and simply keeping the
money.
D) the cost of producing good X.
7) If the benefits of X = $50 and the price of X = $50, then
A) $100 is the reservation price.
B) you will be indifferent between buying X and keeping your money.
C) $0 is the reservation price.
D) you should buy X.
8) Your bank account pays 3% interest per year. You loan a friend $100 for one year at zero
interest. Assuming the loan is paid on time the opportunity cost of the loan is
A) $3.
B) $0.
C) $100.
D) $103.
9) Your bank account pays 3% interest per year. You loan a friend $200 for one year at zero
interest. Assuming the loan is paid on time the opportunity cost of the loan is
A) $6.
B) $206.
C) $0.
D) $200.
10) Your bank account pays 5% interest per year. You loan a friend $100 for one year at zero
interest. Assuming the loan is paid on time, the opportunity cost of the loan is
A) $5.
B) $95.
C) $100.
D) $105.
2
,Test Bank for Microeconomics and Behavior
Chapter 01
11) You decide to go skiing this weekend. It costs $50 for transportation, $50 for lodging, $30
for ski lift tickets and you could have earned $100 as a waiter. What is the total cost of the
ski weekend?
A) $230
B) $130
C) $100
D) $80
12) You decide to go skiing this weekend. It costs $50 for transportation, $90 for lodging, $50
for ski lift tickets and you could have earned $150 as a waiter. What is the total cost of the
ski weekend?
A) $140
B) $190
C) $150
D) $340
13) You decide to go skiing this weekend. It costs $50 for transportation, $80 for lodging, $40
for ski lift tickets, and you could have earned $100 as a waiter. What is the total cost of the
ski weekend?
A) $120
B) $270
C) $100
D) $170
14) You are planning to go skiing this weekend. It costs $50 for transportation, $50 for lodging,
and $30 for ski lift tickets. You are not currently working. What is the total cost of the ski
weekend?
A) $230
B) $130
C) $100
D) $80
15) You decide to go skiing this weekend. It costs $60 for transportation, $80 for lodging, $40
for ski lift tickets. You are unemployed. What is the total cost of the ski weekend?
A) $40
B) $100
C) $180
D) $120
3
, Test Bank for Microeconomics and Behavior
Chapter 01
16) You are planning to go skiing this weekend. It costs $60 for transportation, $100 for lodging,
and $30 for ski lift tickets. You are not currently working. What is the total cost of the ski
weekend?
A) $30
B) $190
C) $130
D) $150
17) You are considering going skiing this weekend. It costs $50 for transportation, $50 for
lodging, $30 for ski lift tickets, and you could have earned $100 at a job you love so much
you would do it as a volunteer. What is the total cost of the ski weekend?
A) $230
B) $130
C) $100
D) $80
18) You decide to go skiing this weekend. It costs $50 for transportation, $90 for lodging, $50
for ski lift tickets and you could have earned $150 as a waiter at a job you love so much you
would do it as a volunteer. What is the total cost of the ski weekend?
A) $190
B) $340
C) $150
D) $140
19) You are considering going skiing this weekend. It costs $50 for transportation, $75 for
lodging, $45 for ski lift tickets, and you could have earned $200 at a job you love so much
you would do it as a volunteer. What is the total cost of the ski weekend?
A) $120
B) $370
C) $200
D) $170
4
Chapter 01
1) Microeconomics is primarily the study of how
A) the stock market works.
B) people choose among alternatives.
C) businesses can make money.
D) the economy functions as a whole.
2) Microeconomics is primarily the study of how
A) interest rates affect the unemployment rate.
B) people choose under conditions of scarcity.
C) policy makers should respond to an economic crisis.
D) the economy functions as a whole.
3) If you are at an all-you-can-eat buffet dinner and you are considering whether to eat another
dessert, you, as a rational consumer should decide to eat the desert
A) if it brings you any pleasure at all.
B) if it brings you more pleasure than the price you paid for the meal.
C) if it brings you as much pleasure as the desert costs if it is ordered a la carte.
D) no matter what because you want to get more for your money.
4) Say your girlfriend has received two free tickets to the Sunday movie matinee and she wants
you to go with her. Nevertheless, the movie plays at the same time you were planning to
watch the football game on the TV. As a rational person you should decide to go to the
movie
A) always, since the tickets were free.
B) only if you would gain some pleasure from it.
C) only if the pleasure you will gain from it outweighs the pleasure you would gain from
watching the football game.
D) only if it brings you more pleasure than the cost of the tickets.
5) Say your girlfriend has received two free tickets to the Sunday movie matinee and she wants
you to go with her. Nevertheless, the movie plays at the same time you were planning to
watch a football game on the TV. You should decide to go to the movie
A) always, since the tickets were free.
B) if it’s not a really big game.
C) if the overall benefits of going exceed those of watching the football game.
D) if it keeps the peace in your relationship.
1
,Test Bank for Microeconomics and Behavior
Chapter 01
6) The reservation price of good X is
A) the market price for a good.
B) any price above what you would be willing to pay for the good.
C) the price at which one would be indifferent between good X and simply keeping the
money.
D) the cost of producing good X.
7) If the benefits of X = $50 and the price of X = $50, then
A) $100 is the reservation price.
B) you will be indifferent between buying X and keeping your money.
C) $0 is the reservation price.
D) you should buy X.
8) Your bank account pays 3% interest per year. You loan a friend $100 for one year at zero
interest. Assuming the loan is paid on time the opportunity cost of the loan is
A) $3.
B) $0.
C) $100.
D) $103.
9) Your bank account pays 3% interest per year. You loan a friend $200 for one year at zero
interest. Assuming the loan is paid on time the opportunity cost of the loan is
A) $6.
B) $206.
C) $0.
D) $200.
10) Your bank account pays 5% interest per year. You loan a friend $100 for one year at zero
interest. Assuming the loan is paid on time, the opportunity cost of the loan is
A) $5.
B) $95.
C) $100.
D) $105.
2
,Test Bank for Microeconomics and Behavior
Chapter 01
11) You decide to go skiing this weekend. It costs $50 for transportation, $50 for lodging, $30
for ski lift tickets and you could have earned $100 as a waiter. What is the total cost of the
ski weekend?
A) $230
B) $130
C) $100
D) $80
12) You decide to go skiing this weekend. It costs $50 for transportation, $90 for lodging, $50
for ski lift tickets and you could have earned $150 as a waiter. What is the total cost of the
ski weekend?
A) $140
B) $190
C) $150
D) $340
13) You decide to go skiing this weekend. It costs $50 for transportation, $80 for lodging, $40
for ski lift tickets, and you could have earned $100 as a waiter. What is the total cost of the
ski weekend?
A) $120
B) $270
C) $100
D) $170
14) You are planning to go skiing this weekend. It costs $50 for transportation, $50 for lodging,
and $30 for ski lift tickets. You are not currently working. What is the total cost of the ski
weekend?
A) $230
B) $130
C) $100
D) $80
15) You decide to go skiing this weekend. It costs $60 for transportation, $80 for lodging, $40
for ski lift tickets. You are unemployed. What is the total cost of the ski weekend?
A) $40
B) $100
C) $180
D) $120
3
, Test Bank for Microeconomics and Behavior
Chapter 01
16) You are planning to go skiing this weekend. It costs $60 for transportation, $100 for lodging,
and $30 for ski lift tickets. You are not currently working. What is the total cost of the ski
weekend?
A) $30
B) $190
C) $130
D) $150
17) You are considering going skiing this weekend. It costs $50 for transportation, $50 for
lodging, $30 for ski lift tickets, and you could have earned $100 at a job you love so much
you would do it as a volunteer. What is the total cost of the ski weekend?
A) $230
B) $130
C) $100
D) $80
18) You decide to go skiing this weekend. It costs $50 for transportation, $90 for lodging, $50
for ski lift tickets and you could have earned $150 as a waiter at a job you love so much you
would do it as a volunteer. What is the total cost of the ski weekend?
A) $190
B) $340
C) $150
D) $140
19) You are considering going skiing this weekend. It costs $50 for transportation, $75 for
lodging, $45 for ski lift tickets, and you could have earned $200 at a job you love so much
you would do it as a volunteer. What is the total cost of the ski weekend?
A) $120
B) $370
C) $200
D) $170
4
