Test Bank Complete_
Microeconomics, Global Edition, 9th Edition,
By Robert Pindyck & Daniel L. Rubinfeld
All Chapters 1-13| 3 Units| Updated With All Verified Answers| Rated A+
From: [Bestmaxsolutions.Stuvia
,TABLE OF CONTENTS
PART 1: INTRODUCTION: MARKETS AND PRICES
Chapter 1. Preliminaries
Chapter 2. The Basics of Supply and Demand
PART 2: PRODUCERS, CONSUMRS, AND COMPETITIVE MARKETS
Chapter 3. Consumer Behavior
Chapter 4. Individual and Market Demand
Chapter 5. Uncertainty and Consumer Behavior
Chapter 6. Production
Chapter 7. The Cost of Production
Chapter 8. Profit Maximization and Competitive Supply
Chapter 9. The Analysis of Competitive Markets
PART 3: MARKET STRUCTURE AND COMPETITIVE STRATEGY
Chapter 10. Market Power: Monopoly and Monopsony
Chapter 11. Pricing with Market Power
Chapter 12. Monopolistic Competition and Oligopoly
Chapter 13. Game Theory and Competitive Strategy
,PART 1: INTRODUCTION: MARKETS AND PRICES
Chapter 1: Preliminaries
Robert Pindyck: Microeconomics, Global Edition, 9th edition, Test Bank
1) Microeconomics Is The Branch Of Economics That Deals With Which Of The Following Topics?
A) The Behavior Of Individual Consumers
B) Unemployment And Interest Rates
C) The Behavior Of Individual Firms And Investors
D) B And C
E) A And C
ANSWER: E
DIFF: 1
SECTION: 1.1
2) A Rolling Stones Song Goes: ʺYou Canʹt Always Get What You Want.ʺ This Echoes An Important
Theme From Microeconomics. Which Of The Following Statements Is The Best Example Of This
Theme?
A) Consumers Must Make The Best Purchasing Decisions They Can, Given Their Limited
Incomes.
B) Workers Do Not Have As Much Leisure As They Would Like, Given Their Wages And
Working Conditions.
C) Workers In Planned Economies, Such As North Korea, Do Not Have Much Choice Over Jobs.
D) Firms In Market Economies Have Limited Financial Resources.
ANSWER: A
DIFF: 1
SECTION: 1.1
3) Economics Is About The Allocation Of Scarce Resources. Which Of The Following Is NOT
An Example Of Economic Scarcity?
A) If Steve Goes To See The Movie Master And Commander On Saturday, He Will Not Be
Able To Afford Buying Ice Cream.
B) If Jenny Studies For Her Economics Quiz This Evening, She Will Not Have Time To Walk
Her Dog.
C) If General Motors Increases Its Production Of Suvs This Year, It Will Have To Spend More
On Advertising.
D) If Borders Books Increases The Number Of Titles It Carries, It Will Have To Reallocate
Shelf Space To Accommodate The New Titles.
ANSWER: C
DIFF: 2
SECTION: 1.1
4) A Valid And Useful Theory Of Gold Prices:
A) Helps To Predict The Movements Of Gold Prices Over Time.
B) May Be Founded On Simplifying Assumptions.
C) Need Not Exactly Predict Every Change In Gold Prices.
D) All Of The Above
E) None Of The
Above ANSWER: D
DIFF: 1
SECTION: 1.1
1
,5) Use The Following Two Statements To Answer This Question:
I. Economic Theories Are Developed To Explain Observed Phenomena By Deducing From A Set
Of Basic Rules And Assumptions.
II. Economic Theories Use Value Judgments To Determine Which People Ought To Pay More
Taxes.
A) Both I And II Are True.
B) I Is True, And II Is False.
C) I Is False, And II Is True.
D) Both I And II Are False.
ANSWER: B
DIFF: 1
SECTION: 1.1
6) Which Of The Following Is A Positive Statement?
A) The President Of The United States Ought To Be Elected By A Direct Vote Of The
American People Rather Than The Electoral College.
B) A Fundamental Assumption Of The Economic Theory Of Consumer Behavior Is That
Consumers Always Prefer Having More Of Any Good To Having Less Of It.
C) Because Many Adults Cannot Afford To Go To College, Tax Credits For Tuition Should
Be Introduced.
D) All Of The Above
E) None Of The Above
ANSWER: B
DIFF: 1
SECTION: 1.1
7) Which Of The Following Is A Normative Statement?
A) The Taxes Paid By The Poor Should Be Reduced In Order To Improve The
Income Distribution In The U.S.
B) State Governments Should Not Subsidize Corporations By Training Welfare Recipients.
C) Presidential Candidates Should Not Be Given Funds From The Federal Government To Run
Campaigns.
D) The Sea Otter Should Not Be Allowed To Spread Into Southern California Coastal Waters,
Because It Will Reduce The Value Of Fisheries.
E) All Of The
Above ANSWER: E
DIFF: 1
SECTION: 1.1
8) Which Of The Following Is A Positive Statement?
A) Intermediate Microeconomics Should Be Required Of All Economics Majors In Order To
Build A Solid Foundation In Economic Theory.
B) The Minimum Wage Should Not Be Increased Because This Action Would Increase
Unemployment.
C) Smoking Should Be Restricted On All Airline Flights.
D) All Automobile Passengers Should Be Required To Wear Seatbelts In Order To Protect Them
Against Injury.
E) None Of The Above
ANSWER: E
DIFF: 1
SECTION: 1.1
2
, 9) Which Of The Following Is A Positive Statement?
A) When The Price Of A Good Goes Up, Consumers Buy Less Of It.
B) When The Price Of A Good Goes Up, Firms Produce More Of It.
C) When The Federal Government Sells Bonds, Interest Rates Rise And Private Investment Is
Reduced.
D) All Of The Above
E) None Of The Above
ANSWER: D
DIFF: 1
SECTION: 1.1
10) Which Of The Following Statements Is False? An Economic Analysis Of Carbon Taxes Can:
A) Calculate The Increase In Costs Faced By Coal-Using Industries.
B) Predict The Effect On Unemployment In West Virginia Coal Mining Communities.
C) Compare The Likely Reductions In Medical Expenditures On Diseases Caused By Smog.
D) Present A Trade-Off Of The Costs And Benefits Of Different Levels Of Carbon Taxes.
E) Conclude That Such Taxes Should Be Imposed To Benefit Future Generations.
ANSWER: E
DIFF: 1
SECTION: 1.1
11) Use The Following Two Statements To Answer This Question:
I. In Order To Answer Normative Questions, It Is Necessary To Make Value Judgments.
II. In Order To Conduct Positive Economic Analysis, It Is Always Necessary To Use
Empirical Evidence In Addition To Economic Theories.
A) I And II Are Incorrect.
B) I Is Correct, II Is Incorrect.
C) I Is Incorrect, II Is Correct.
D) Both I And II Are Correct.
ANSWER: B
DIFF: 1
SECTION: 1.1
12) Questions Have To Do With Explanation And Prediction, Questions Have
To Do With What Ought To Be.
A) Positive; Negative.
B) Negative; Normative.
C) Affirmative; Positive.
D) Positive; Normative.
E) Econometric; Theoretical.
ANSWER: D
DIFF: 1
SECTION: 1.1
13) The Key Assumption Underlying The Theory Of The Firm Is That:
A) Firms Are Assumed To Maximize Sales Revenue.
B) Managers Are Assumed To Maximize The Number Of Employees In Their Department.
C) Firms Are Assumed To Maximize Profits.
D) None Of The Above
ANSWER: C
DIFF: 1
SECTION: 1.1
3
,14) Which Of The Following Statements Is NOT True?
A) The Trade-Offs Facing Consumers And Producers Are Based On Prices.
B) All Prices Are Determined By Market Interactions Between Buyers And Sellers.
C) Prices Serve An Important Role In Microeconomics.
D) Only A And B Above False.
E) Only B And C Above Are False.
ANSWER: B
DIFF: 1
SECTION: 1.1
15) Please Use The Following Statements To Answer This Question:
I. The Process Of Testing And Revising Theories Is Central To The Development Of
Economics As A Science.
II. Theory Is Imperfect And May Not Adequately Describe Economic Behavior In Some Cases.
A) I And II Are True.
B) I Is True And II Is False.
C) I Is False And II Is True.
D) I And II Are False.
ANSWER: A
DIFF: 1
SECTION: 1.1
16) The Trade-Offs Facing Consumers Include:
A) How To Allocate Income Across Goods And Serves.
B) How To Allocate Income Between Consumption And Savings.
C) Both A And B
D) None Of The Above
ANSWER: C
DIFF: 1
SECTION: 1.1
17) The Trade-Offs Facing Workers Include All Of The Following EXCEPT:
A) Decision To Work Or Remain Outside The Workforce.
B) Decision To Work Or Seek Additional Education.
C) Decision To Work For A Large Corporation Or A Small Firm.
D) Decision To Allocate Their Time Between Work And Leisure.
E) All Of The Above Are Trade-Offs Facing Workers.
ANSWER: E
DIFF: 1
SECTION: 1.1
18) Firms Face Trade-Offs In Production, Including Decisions Related To:
A) Which Products To Produce.
B) How Much Of A Particular Product To Produce.
C) The Best Way To Produce A Given Amount Of Output.
D) All Of The Above
ANSWER: D
DIFF: 2
SECTION: 1.1
4
, 19) Which Of The Following Markets Has The Most Restrictive Geographic Boundary?
A) The Market For Retail Gasoline B) The Market For Housing
C) The Market For Gold D) The Market For Beef
ANSWER: B
DIFF: 1
SECTION: 1.2
20) An Investor Can Acquire Shares Of Stock In Acme Corporation Either By Purchasing Shares On
The Stock Market Or By Purchasing A Bond That Is Convertible Into Shares Of Acme Stock. After
Careful Study, The Investor Discovers That She Can Profit By Purchasing The Bond, Converting It
To Shares Of Stock, And Selling The Stock. This Practice Is Called:
A) Selling Short.
B) Arbitrage.
C) Profiteering.
D) Dumping.
E) None Of The
Above ANSWER: B
DIFF: 1
SECTION: 1.2
21) Use The Following Two Statements To Answer This Question:
I. A Market Is A Collection Of Buyers And Sellers That, Through Actual Or Potential
Interactions, Determine The Price For A Product Or Set Of Products.
II. An Industry Is A Collection Of Markets For Similar Or Closely Related Products.
A) Both I And II Are True. B) I Is True, And II Is False.
C) I Is False, And II Is True. D) Both I And II Are
False. ANSWER: B
DIFF: 1
SECTION: 1.2
22) In A Perfectly Competitive Market:
A) There Are A Few Buyers.
B) There Is A Single Seller.
C) There Is A Cartel.
D) No Single Buyer Or Seller Can Significantly Affect The Market
Price. ANSWER: D
DIFF: 1
SECTION: 1.2
23) Boeing Corporation And Airbus Industries Are The Only Two Producers Of Long -Range
Commercial Aircraft. This Market Is Not Perfectly Competitive Because:
A) Each Company Has Annual Sales Over $10 Billion.
B) Each Company Can Significantly Affect Prices.
C) Airbus Receives Subsidies From The European Union.
D) Airbus Cannot Sell Aircraft To The United States Government.
E) All Of The
Above ANSWER: B
DIFF: 1
SECTION: 1.2
5
Microeconomics, Global Edition, 9th Edition,
By Robert Pindyck & Daniel L. Rubinfeld
All Chapters 1-13| 3 Units| Updated With All Verified Answers| Rated A+
From: [Bestmaxsolutions.Stuvia
,TABLE OF CONTENTS
PART 1: INTRODUCTION: MARKETS AND PRICES
Chapter 1. Preliminaries
Chapter 2. The Basics of Supply and Demand
PART 2: PRODUCERS, CONSUMRS, AND COMPETITIVE MARKETS
Chapter 3. Consumer Behavior
Chapter 4. Individual and Market Demand
Chapter 5. Uncertainty and Consumer Behavior
Chapter 6. Production
Chapter 7. The Cost of Production
Chapter 8. Profit Maximization and Competitive Supply
Chapter 9. The Analysis of Competitive Markets
PART 3: MARKET STRUCTURE AND COMPETITIVE STRATEGY
Chapter 10. Market Power: Monopoly and Monopsony
Chapter 11. Pricing with Market Power
Chapter 12. Monopolistic Competition and Oligopoly
Chapter 13. Game Theory and Competitive Strategy
,PART 1: INTRODUCTION: MARKETS AND PRICES
Chapter 1: Preliminaries
Robert Pindyck: Microeconomics, Global Edition, 9th edition, Test Bank
1) Microeconomics Is The Branch Of Economics That Deals With Which Of The Following Topics?
A) The Behavior Of Individual Consumers
B) Unemployment And Interest Rates
C) The Behavior Of Individual Firms And Investors
D) B And C
E) A And C
ANSWER: E
DIFF: 1
SECTION: 1.1
2) A Rolling Stones Song Goes: ʺYou Canʹt Always Get What You Want.ʺ This Echoes An Important
Theme From Microeconomics. Which Of The Following Statements Is The Best Example Of This
Theme?
A) Consumers Must Make The Best Purchasing Decisions They Can, Given Their Limited
Incomes.
B) Workers Do Not Have As Much Leisure As They Would Like, Given Their Wages And
Working Conditions.
C) Workers In Planned Economies, Such As North Korea, Do Not Have Much Choice Over Jobs.
D) Firms In Market Economies Have Limited Financial Resources.
ANSWER: A
DIFF: 1
SECTION: 1.1
3) Economics Is About The Allocation Of Scarce Resources. Which Of The Following Is NOT
An Example Of Economic Scarcity?
A) If Steve Goes To See The Movie Master And Commander On Saturday, He Will Not Be
Able To Afford Buying Ice Cream.
B) If Jenny Studies For Her Economics Quiz This Evening, She Will Not Have Time To Walk
Her Dog.
C) If General Motors Increases Its Production Of Suvs This Year, It Will Have To Spend More
On Advertising.
D) If Borders Books Increases The Number Of Titles It Carries, It Will Have To Reallocate
Shelf Space To Accommodate The New Titles.
ANSWER: C
DIFF: 2
SECTION: 1.1
4) A Valid And Useful Theory Of Gold Prices:
A) Helps To Predict The Movements Of Gold Prices Over Time.
B) May Be Founded On Simplifying Assumptions.
C) Need Not Exactly Predict Every Change In Gold Prices.
D) All Of The Above
E) None Of The
Above ANSWER: D
DIFF: 1
SECTION: 1.1
1
,5) Use The Following Two Statements To Answer This Question:
I. Economic Theories Are Developed To Explain Observed Phenomena By Deducing From A Set
Of Basic Rules And Assumptions.
II. Economic Theories Use Value Judgments To Determine Which People Ought To Pay More
Taxes.
A) Both I And II Are True.
B) I Is True, And II Is False.
C) I Is False, And II Is True.
D) Both I And II Are False.
ANSWER: B
DIFF: 1
SECTION: 1.1
6) Which Of The Following Is A Positive Statement?
A) The President Of The United States Ought To Be Elected By A Direct Vote Of The
American People Rather Than The Electoral College.
B) A Fundamental Assumption Of The Economic Theory Of Consumer Behavior Is That
Consumers Always Prefer Having More Of Any Good To Having Less Of It.
C) Because Many Adults Cannot Afford To Go To College, Tax Credits For Tuition Should
Be Introduced.
D) All Of The Above
E) None Of The Above
ANSWER: B
DIFF: 1
SECTION: 1.1
7) Which Of The Following Is A Normative Statement?
A) The Taxes Paid By The Poor Should Be Reduced In Order To Improve The
Income Distribution In The U.S.
B) State Governments Should Not Subsidize Corporations By Training Welfare Recipients.
C) Presidential Candidates Should Not Be Given Funds From The Federal Government To Run
Campaigns.
D) The Sea Otter Should Not Be Allowed To Spread Into Southern California Coastal Waters,
Because It Will Reduce The Value Of Fisheries.
E) All Of The
Above ANSWER: E
DIFF: 1
SECTION: 1.1
8) Which Of The Following Is A Positive Statement?
A) Intermediate Microeconomics Should Be Required Of All Economics Majors In Order To
Build A Solid Foundation In Economic Theory.
B) The Minimum Wage Should Not Be Increased Because This Action Would Increase
Unemployment.
C) Smoking Should Be Restricted On All Airline Flights.
D) All Automobile Passengers Should Be Required To Wear Seatbelts In Order To Protect Them
Against Injury.
E) None Of The Above
ANSWER: E
DIFF: 1
SECTION: 1.1
2
, 9) Which Of The Following Is A Positive Statement?
A) When The Price Of A Good Goes Up, Consumers Buy Less Of It.
B) When The Price Of A Good Goes Up, Firms Produce More Of It.
C) When The Federal Government Sells Bonds, Interest Rates Rise And Private Investment Is
Reduced.
D) All Of The Above
E) None Of The Above
ANSWER: D
DIFF: 1
SECTION: 1.1
10) Which Of The Following Statements Is False? An Economic Analysis Of Carbon Taxes Can:
A) Calculate The Increase In Costs Faced By Coal-Using Industries.
B) Predict The Effect On Unemployment In West Virginia Coal Mining Communities.
C) Compare The Likely Reductions In Medical Expenditures On Diseases Caused By Smog.
D) Present A Trade-Off Of The Costs And Benefits Of Different Levels Of Carbon Taxes.
E) Conclude That Such Taxes Should Be Imposed To Benefit Future Generations.
ANSWER: E
DIFF: 1
SECTION: 1.1
11) Use The Following Two Statements To Answer This Question:
I. In Order To Answer Normative Questions, It Is Necessary To Make Value Judgments.
II. In Order To Conduct Positive Economic Analysis, It Is Always Necessary To Use
Empirical Evidence In Addition To Economic Theories.
A) I And II Are Incorrect.
B) I Is Correct, II Is Incorrect.
C) I Is Incorrect, II Is Correct.
D) Both I And II Are Correct.
ANSWER: B
DIFF: 1
SECTION: 1.1
12) Questions Have To Do With Explanation And Prediction, Questions Have
To Do With What Ought To Be.
A) Positive; Negative.
B) Negative; Normative.
C) Affirmative; Positive.
D) Positive; Normative.
E) Econometric; Theoretical.
ANSWER: D
DIFF: 1
SECTION: 1.1
13) The Key Assumption Underlying The Theory Of The Firm Is That:
A) Firms Are Assumed To Maximize Sales Revenue.
B) Managers Are Assumed To Maximize The Number Of Employees In Their Department.
C) Firms Are Assumed To Maximize Profits.
D) None Of The Above
ANSWER: C
DIFF: 1
SECTION: 1.1
3
,14) Which Of The Following Statements Is NOT True?
A) The Trade-Offs Facing Consumers And Producers Are Based On Prices.
B) All Prices Are Determined By Market Interactions Between Buyers And Sellers.
C) Prices Serve An Important Role In Microeconomics.
D) Only A And B Above False.
E) Only B And C Above Are False.
ANSWER: B
DIFF: 1
SECTION: 1.1
15) Please Use The Following Statements To Answer This Question:
I. The Process Of Testing And Revising Theories Is Central To The Development Of
Economics As A Science.
II. Theory Is Imperfect And May Not Adequately Describe Economic Behavior In Some Cases.
A) I And II Are True.
B) I Is True And II Is False.
C) I Is False And II Is True.
D) I And II Are False.
ANSWER: A
DIFF: 1
SECTION: 1.1
16) The Trade-Offs Facing Consumers Include:
A) How To Allocate Income Across Goods And Serves.
B) How To Allocate Income Between Consumption And Savings.
C) Both A And B
D) None Of The Above
ANSWER: C
DIFF: 1
SECTION: 1.1
17) The Trade-Offs Facing Workers Include All Of The Following EXCEPT:
A) Decision To Work Or Remain Outside The Workforce.
B) Decision To Work Or Seek Additional Education.
C) Decision To Work For A Large Corporation Or A Small Firm.
D) Decision To Allocate Their Time Between Work And Leisure.
E) All Of The Above Are Trade-Offs Facing Workers.
ANSWER: E
DIFF: 1
SECTION: 1.1
18) Firms Face Trade-Offs In Production, Including Decisions Related To:
A) Which Products To Produce.
B) How Much Of A Particular Product To Produce.
C) The Best Way To Produce A Given Amount Of Output.
D) All Of The Above
ANSWER: D
DIFF: 2
SECTION: 1.1
4
, 19) Which Of The Following Markets Has The Most Restrictive Geographic Boundary?
A) The Market For Retail Gasoline B) The Market For Housing
C) The Market For Gold D) The Market For Beef
ANSWER: B
DIFF: 1
SECTION: 1.2
20) An Investor Can Acquire Shares Of Stock In Acme Corporation Either By Purchasing Shares On
The Stock Market Or By Purchasing A Bond That Is Convertible Into Shares Of Acme Stock. After
Careful Study, The Investor Discovers That She Can Profit By Purchasing The Bond, Converting It
To Shares Of Stock, And Selling The Stock. This Practice Is Called:
A) Selling Short.
B) Arbitrage.
C) Profiteering.
D) Dumping.
E) None Of The
Above ANSWER: B
DIFF: 1
SECTION: 1.2
21) Use The Following Two Statements To Answer This Question:
I. A Market Is A Collection Of Buyers And Sellers That, Through Actual Or Potential
Interactions, Determine The Price For A Product Or Set Of Products.
II. An Industry Is A Collection Of Markets For Similar Or Closely Related Products.
A) Both I And II Are True. B) I Is True, And II Is False.
C) I Is False, And II Is True. D) Both I And II Are
False. ANSWER: B
DIFF: 1
SECTION: 1.2
22) In A Perfectly Competitive Market:
A) There Are A Few Buyers.
B) There Is A Single Seller.
C) There Is A Cartel.
D) No Single Buyer Or Seller Can Significantly Affect The Market
Price. ANSWER: D
DIFF: 1
SECTION: 1.2
23) Boeing Corporation And Airbus Industries Are The Only Two Producers Of Long -Range
Commercial Aircraft. This Market Is Not Perfectly Competitive Because:
A) Each Company Has Annual Sales Over $10 Billion.
B) Each Company Can Significantly Affect Prices.
C) Airbus Receives Subsidies From The European Union.
D) Airbus Cannot Sell Aircraft To The United States Government.
E) All Of The
Above ANSWER: B
DIFF: 1
SECTION: 1.2
5
