Test Bank
BESANKO & BRAEUTIGAM –
MICROECONOMICS, 5TH EDITION TEST
BANK
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Table of contents
• Chapter 1: Analyzing Economic Problems
• Chapter 2: Demand and Supply Analysis
• Chapter 3: Consumer Preferences and Choice
• Chapter 4: Demand
• Chapter 5: Uncertainty and Consumer Behavior
• Chapter 6: Inputs and Production Functions
• Chapter 7: Costs of Production
• Chapter 8: Competitive Firms and Markets
• Chapter 9: Applications of Competitive Markets
• Chapter 10: Competitive Markets: Applications
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File: ch01, Chapter 1: Analyzing Economic Problems
Multiple Choice
1. The analytical tools underlying nearly all microeconomic studies are:
a) Unconstrained optimization and comparative statics.
b) Comparative statics and game theory.
c) Opportunity cost and equilibrium analysis.
d) Constrained optimization, equilibrium analysis, and comparative statics.
Ans: D
Difficulty: Easy
Heading: Why Study Microeconomics?
LO 1 Define the terms microeconomics and macroeconomics, including the concept of the
science of constrained choice.
2. Economics is often described as
a) The science of choice
b) The science of constrained choice
c) The science of supply and demand
d) The science of market forces
Ans: B
Difficulty: Easy
Heading: Why Study Microeconomics?
LO 1 Define the terms microeconomics and macroeconomics, including the concept of the
science of constrained choice.
3. Microeconomics examines
a) the economic behavior of an entire nation.
b) the economic behavior of individual economic decision units.
c) topics such as national income and inflation.
d) monetary policy.
Ans: B
Difficulty: Easy
Heading: Why Study Microeconomics?
LO 1 Define the terms microeconomics and macroeconomics, including the concept of the
science of constrained choice.
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, Test Bank
4. An endogenous variable is
a) a variable that an economic agent chooses.
b) consumption, investment or government spending.
c) a variable determined within the economic system being studied.
d) a variable pertaining to the home country economy.
Ans: C
Difficulty: Easy
Heading: Why Study Microeconomics?
LO 1 Define the terms microeconomics and macroeconomics, including the concept of the
science of constrained choice.
5. In general, economics is the study of
a) the allocation of scarce wants to unlimited resources.
b) the allocation scarce resources to unlimited wants.
c) the allocation of resources between the government and the private sector.
d) the allocation of workers between firms.
Ans: B
Difficulty: Easy
Heading: Why Study Microeconomics?
LO 1 Define the terms microeconomics and macroeconomics, including the concept of the
science of constrained choice.
Q6. Identifying the most efficient way to allocate an economy’s scarce resources is an example of:
a) Comparative statics
b) Constrained optimization
c) Equilibrium analysis
d) Marginal reasoning
Answer: b) Constrained optimization
Rationale: Constrained optimization is about making the best possible choice given limitations like budget or resources.
Resource allocation decisions are classic constrained optimization problems.
Q7. Every society must answer which fundamental question?
a) Who decides exogenous and endogenous variables?
b) How centralized should bureaucracy be?
c) What, how, and for whom to produce?
d) Who sets equilibrium prices?
Downloaded by Collins Mwaniki ()
BESANKO & BRAEUTIGAM –
MICROECONOMICS, 5TH EDITION TEST
BANK
Downloaded by Collins Mwaniki ()
, Test Bank
Table of contents
• Chapter 1: Analyzing Economic Problems
• Chapter 2: Demand and Supply Analysis
• Chapter 3: Consumer Preferences and Choice
• Chapter 4: Demand
• Chapter 5: Uncertainty and Consumer Behavior
• Chapter 6: Inputs and Production Functions
• Chapter 7: Costs of Production
• Chapter 8: Competitive Firms and Markets
• Chapter 9: Applications of Competitive Markets
• Chapter 10: Competitive Markets: Applications
Downloaded by Collins Mwaniki ()
, Test Bank
File: ch01, Chapter 1: Analyzing Economic Problems
Multiple Choice
1. The analytical tools underlying nearly all microeconomic studies are:
a) Unconstrained optimization and comparative statics.
b) Comparative statics and game theory.
c) Opportunity cost and equilibrium analysis.
d) Constrained optimization, equilibrium analysis, and comparative statics.
Ans: D
Difficulty: Easy
Heading: Why Study Microeconomics?
LO 1 Define the terms microeconomics and macroeconomics, including the concept of the
science of constrained choice.
2. Economics is often described as
a) The science of choice
b) The science of constrained choice
c) The science of supply and demand
d) The science of market forces
Ans: B
Difficulty: Easy
Heading: Why Study Microeconomics?
LO 1 Define the terms microeconomics and macroeconomics, including the concept of the
science of constrained choice.
3. Microeconomics examines
a) the economic behavior of an entire nation.
b) the economic behavior of individual economic decision units.
c) topics such as national income and inflation.
d) monetary policy.
Ans: B
Difficulty: Easy
Heading: Why Study Microeconomics?
LO 1 Define the terms microeconomics and macroeconomics, including the concept of the
science of constrained choice.
Downloaded by Collins Mwaniki ()
, Test Bank
4. An endogenous variable is
a) a variable that an economic agent chooses.
b) consumption, investment or government spending.
c) a variable determined within the economic system being studied.
d) a variable pertaining to the home country economy.
Ans: C
Difficulty: Easy
Heading: Why Study Microeconomics?
LO 1 Define the terms microeconomics and macroeconomics, including the concept of the
science of constrained choice.
5. In general, economics is the study of
a) the allocation of scarce wants to unlimited resources.
b) the allocation scarce resources to unlimited wants.
c) the allocation of resources between the government and the private sector.
d) the allocation of workers between firms.
Ans: B
Difficulty: Easy
Heading: Why Study Microeconomics?
LO 1 Define the terms microeconomics and macroeconomics, including the concept of the
science of constrained choice.
Q6. Identifying the most efficient way to allocate an economy’s scarce resources is an example of:
a) Comparative statics
b) Constrained optimization
c) Equilibrium analysis
d) Marginal reasoning
Answer: b) Constrained optimization
Rationale: Constrained optimization is about making the best possible choice given limitations like budget or resources.
Resource allocation decisions are classic constrained optimization problems.
Q7. Every society must answer which fundamental question?
a) Who decides exogenous and endogenous variables?
b) How centralized should bureaucracy be?
c) What, how, and for whom to produce?
d) Who sets equilibrium prices?
Downloaded by Collins Mwaniki ()
