Test Bank for Microeconomics, 7th Edition by Jeffrey M. Perloff

,Microeconomics, 7e (Perloff)

Chapter m1 Introduction




1.1 Microeconomics: mThe mAllocation mof mScarce mResources



1) Microeconomics m studies m the m allocation m of

A) decision mmakers.
B) scarce mresources.
C) models.
D) unlimited
mresources. mAnswer:

B
Section: The mAllocation mof mScarce
mResources mQuestion mStatus: Old
AACSB: Analytic m thinking




2) Microeconomics mis moften mcalled
A) price mtheory.
B) decision mscience.
C) scarcity.
D) resource
mtheory. mAnswer:

A
Section: The mAllocation mof mScarce
mResources mQuestion mStatus: Old
AACSB: Analytic m thinking




3) Most mmicroeconomic mmodels massume mthat mdecision mmakers mwish mto
A) make mthemselves mas mwell moff mas mpossible.
B) act mselfishly.
C) make mothers mas mwell moff mas mpossible.
D) None mof mthe
mabove. mAnswer:

A
Section: The mAllocation mof mScarce
mResources mQuestion mStatus: Old
AACSB: Analytic m thinking




4) Society m faces m trade--‐‐offs m because m of
A) government m regulations.
B) profit mmotive.
C) faceless mbureaucrats.

,D) scarcity.
mAnswer: D
Section: The mAllocation mof mScarce
mResources mQuestion mStatus: Old
AACSB: Analytic m thinking

, 5) A mmarket
A) always minvolves mthe mpersonal mexchange mof mgoods mfor mmoney.
B) allows m interactions m between m consumers m and m firms.

C) always mtakes mplace mat ma mphysical mlocation.
D) has mno minfluence mon
mprices. mAnswer: B
Section: The mAllocation mof mScarce
mResources mQuestion mStatus: Old
AACSB: Analytic m thinking




6) What mlinks mthe mdecisions mof mconsumers mand mfirms min ma mmarket?
A) the mgovernment
B) prices
C) coordination m officials
D) microeconomics
mAnswer: B
Section: The mAllocation mof mScarce
mResources mQuestion mStatus: Old
AACSB: Analytic m thinking




7) The mprice mof ma mgood mis
A) always mequal mto mthe mcost mof mproducing mthe mgood.
B) never maffected mby mthe mnumber mof mbuyers mand msellers.
C) usually mdetermined min ma mmarket.
D) None mof mthe
mabove. mAnswer:

C
Section: The mAllocation mof mScarce
mResources mQuestion mStatus: Old
AACSB: Analytic m thinking




8) Who mor mwhat mis mresponsible mfor mbringing mtogether mscarce mresources mto mproduce
mmost mof mthe mgoods mand mservices min mthe mU.S.?

A) the mU.S. mgovernment
B) the mUnited mNations
C) the mFederal mReserve mBank
D) markets mand
mprices mAnswer:

D
Section: The mAllocation mof mScarce
mResources mQuestion mStatus: Revised
AACSB: Analytic m thinking