Principles of Microeconomics, 9th Edition — Test Item File 2

,Principles of Microeconomics, 9e - Test Item File 2 (Case/Fair/Oster)
Chapter 1 The Scope and Method of Economics

1.1 Why Study Economics?
1 Multiple Choice

1) Thej reasonsj toj studyj economicsj includej whichj ofj thej following?
A) toj bej anj informedj voter
B) toj understandj societyj andj globalj affairs
C) toj learnj aj wayj ofj thinking
D) allj ofj thej abovej
Answer:j D
Diff: 1
Topic: Why Study Economics?
Skill: Fact

2) Marginalismj is
A) thej bestj alternativej thatj wej foregoj whenj makingj aj decision.
B) thej studyj ofj howj societiesj choosej toj usej scarcej resources.
C) aj marketj situationj inj whichj profitj opportunitiesj arej eliminatedj almostj instantaneously.
D) thej processj ofj analyzingj thej additionalj costsj orj benefitsj arisingj fromj aj
decision.j Answer:j D
Diff: 1
Topic: Why Study Economics?
Skill: Definition

3) Economicsj isj bestj definedj asj thej studyj of
A) financialj decision-making.
B) howj consumersj makej purchasingj decisions.
C) choicesj madej byj peoplej facedj withj scarcity.
D) inflation,j unemployment,j andj economicj growth.j
Answer:j C
Diff: 2
Topic: Why Study Economics?
Skill: Definition

4) Thej Industrialj Revolutionj refersj toj thej risej ofj thej modernj factoryj systemj inj
during
j thej latej eighteenthj andj earlyj nineteenthj centuries.

A) thej Unitedj States
B) England
C) France
D) Germany
j Answer:j Bj

Diff: 1
Topic: Why Study Economics?
Skill: Fact

,5) Whichj ofj thej followingj statementsj isj correct?
A) Economicsj isj aj naturalj science.
B) Inj largej measure,j economicsj isj thej studyj ofj howj peoplej makej choices.
C) Ifj povertyj wasj eliminatedj therej wouldj bej noj reasonj toj studyj economics.
D) Economicj analysisj canj bej usedj toj explainj howj societies,j butj notj individuals,j
makej decisions.
Answer:j B
Diff: 1
Topic: Why Study Economics?
Skill: Fact

6) Economicsj isj thej studyj of
A) howj toj investj inj thej stockj market.
B) howj societyj usesj limitedj resources.
C) thej rolej ofj moneyj inj markets.
D) howj governmentj officialsj decidej whichj goodsj andj servicesj arej
produced.j Answer:j B
Diff: 2
Topic: Why Study Economics?
Skill: Definition

7) Costsj thatj cannotj bej avoided,j becausej theyj havej alreadyj beenj incurredj arej knownj as
A) differentialj costs.
B) marginalj costs.
C) opportunityj costs.
D) sunkj
costs.j Answer:j
D
Diff: 2
Topic: Why Study Economics?
Skill: Definition

8) Supposej thatj twoj weeksj agoj youj purchasedj aj ticketj toj thej symphonyj forj $40.j Lastj weekj
someonej invitedj youj toj goj campingj onj thej samej nightj asj thej symphonyj concert.j Youj
wouldj muchj ratherj goj campingj thanj goj toj thej symphony.j Youj havej triedj unsuccessfullyj
toj sellj thej symphonyj concertj ticket.j Whichj ofj thej followingj statementsj regardingj thisj
situationj isj correct?
A) Thej $40j symphonyj ticketj shouldj bej irrelevantj inj yourj decisionj making,j becausej
itj representsj thej marginalj costj ofj goingj camping.
B) Thej $40j youj paidj forj thej symphonyj ticketj shouldj bej irrelevantj inj yourj
decisionj making,j becausej itj isj aj sunkj cost.
C) Thej $40j youj paidj forj thej symphonyj ticketj isj relevantj toj thej decision,j asj thisj
representsj thej opportunityj costj ofj goingj camping.
D) Youj shouldj basej yourj decisionj onj whetherj orj notj goingj campingj willj providej youj
withj morej thanj $40j inj satisfaction.
Answer:j B
Diff: 2
Topic: Why Study Economics?
Skill: Conceptual
AACSB: Reflective Thinking

, 9) Youj havej decidedj thatj youj wantj toj attendj aj renaissancej fairj asj Kingj Henryj VIII.j Youj
estimatej thatj itj willj costj $80j toj assemblej yourj costume.j Afterj spendingj $80j onj thej
costume,j youj realizej thatj thej additionalj piecesj youj needj willj costj youj $20j more.j Thej
marginalj costj ofj completingj thej costumej is
A) $20.
B) $60.
C) $80.
D) $100.
Answer:j A
Diff: 2
Topic: Why Study Economics?
Skill: Analytic
AACSB: Analytic Skills

10) Thej conceptj ofj opportunityj costj canj bej appliedj toj thej analysisj ofj decision-makingj
processes.
A) onlyj economy-wide
B) onlyj global
C) only-small-scale
D) anyj
Answer:j
Dj Diff: 2
Topic: Why Study Economics?
Skill: Conceptual
AACSB: Reflective Thinking

11) Thatj whichj wej forgo,j orj givej up,j whenj wej makej aj choicej orj aj decisionj isj knownj as
A) equity.
B) causation.
C) correlation.
D) opportunityj
cost.j Answer:j D
Diff: 2
Topic: Why Study Economics?
Skill: Definition

12) Scarcej resourcesj givej risej toj thej conceptj of
A) efficientj markets.
B) opportunityj costs.
C) laissez-faire.
D) positivej
economics.j Answer:j B
Diff: 1
Topic: Why Study Economics?
Skill: Fact