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Micro
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Preguntas del test (100)
1Scarcity exists when
- Athere is less than an infinite amount of a resource or good.
- Bthere is less of a good or resource available than people wish to have.
- Cthe government cannot meet the wants of every individual.
- Db and c
2Which of the following goods best meets the definition of scarcity?
- Aair
- Bwater in a rain forest
- Cdrinkable water in a city
- Dwood in a rain forest
3Which of the following falls within the study of economics?
- Athe decision of a consumer in allocating her income
- Bthe decision of a student in allocating her time
- Cthe decision of a worker to take a particular job
- Dall of the above
4In economics, the adage, "There is no such thing as a free lunch," means:
- AEven people on welfare have to pay for food these days.
- BTo get something we like, we usually have to give up another thing we like.
- CThe things we eat usually contain harmful substances which will hurt our health over time.
- DFood is a scarce good.
5If Susan works an additional hour to help pay her college expenses,
- Ashe gives up an hour that she could have spent studying, exercising, or doing something else of
value. - Bshe really doesn't give up anything, because without working she can't attend college.
- Cwe would say she gives up something only if she could have spent her time doing something more
important than working. - Dshe gives up something only if she is working overtime.
- Ashe gives up an hour that she could have spent studying, exercising, or doing something else of
6Paul decides to spend an hour playing basketball rather than studying or working at $6 per hour. His tradeoff is
- Anothing, because he enjoys playing basketball more than working or studying.
- Bthe benefit to his grades from studying for an hour, or the $6 he could have earned from working.
- Cthe increase in skill he obtains from playing basketball for that hour.
- Dnothing, because he spent $6 for admission into the sports complex to play basketball.
7Efficiency means that
- Asociety is conserving on resources in order to save them for the future.
- Bsociety's goods and services are distributed fairly among society's members.
- Csociety is getting the most it can from its scarce resources.
- Dsociety has lessened its dependence on energy sources.
8When government policies are being designed,
- Aequity and efficiency goals are usually compatible.
- Bequity can usually be achieved without an efficiency loss.
- Cthere is usually a tradeoff between equity and efficiency: forcing more equal shares of the pie
(equity) usually results in decreasing the size of the pie (efficiency). - Dincreasing the size of the pie (efficiency) usually results in more equal shares of the pie (equity).
9In economics, the cost of something is
- Awhat you give up to get it.
- Bthe out-of-pocket expense of obtaining it.
- Calways measured in dollars.
- Dalways higher than people think.
10The opportunity cost of an item is
- Agreater during periods of inflation and lower during periods of deflation.
- Bwhat you give up to get that item.
- Calways equal to the dollar value of the item.
- Dalways less than the dollar value of the item.
11A rational decision maker takes an action only if
- Athe marginal (additional) benefit is greater than the marginal (additional) cost.
- Bthe average benefit is greater than the average cost.
- Cthe average benefit is greater than the average cost, and the marginal benefit is greater than the marginal cost.
- Dthe marginal benefit is greater than both the average cost and the marginal cost.
12Sometimes, public policies have unintended and costly side-effects on society because
- Athe courts do not enforce the policies.
- Bindividuals in society do not always understand the policies.
- Cthe policies may alter private incentives in ways often overlooked by policymakers.
- Da and b.
13Which is the most accurate statement about trade?
- ATrade makes some nations better off and others worse off.
- BTrading for a good can make a nation or a person better off only if the nation or the person cannot
produce the traded good him or herself. - CTrade helps the rich and hurts the poor.
- DTrade can make every nation or person involved in the trade better off.
14If Canada is better than the U.S. at producing beer, but the U.S. is better than Canada at producing hockey sticks,
- Athe U.S. should impose a tariff on Canadian beer in order to protect jobs in the U.S. beer industry.
- Bthe U.S. should subsidize its beer industry so that it can compete with Canadian beer.
- Cthe U.S. should export and sell hockey sticks to Canada, and should buy imported Canadian beer.
- Dthe U.S. should put a quota on the amount of Canadian beer imported.
15In a market economy,
- Afirms voluntarily decide whom to hire and what to produce.
- Bhouseholds voluntarily decide which firms to work for and what to buy with their incomes.
- Cprofit-seeking and self-interest guide the decisions of firms and households for the greater good of
society. - Dall of the above
16In his 1776 book The Wealth of Nations, Adam Smith made the most famous observation in all of economics:
- APeople buy more when prices are low than when prices are high.
- BNo matter how much people earn, they tend to spend more than they earn.
- CHouseholds and firms interacting in markets are guided by an "invisible hand" that leads them to
desirable market outcomes and an efficient use of scarce resources. - DThe "invisible hand" of markets is never as effective as the "visible hand" of government in
producing desirable outcomes for an economy.
17The "invisible hand" directs economic activity through
- Asubliminal messages.
- Bmass media.
- Cprices and self-interest.
- Dgovernment regulations on market trade.
18When the government prevents prices from adjusting naturally to supply and demand,
- Asociety benefits from the reduced uncertainty associated with variable prices.
- Bit impedes the invisible hand's ability to coordinate the millions of households and firms that make
up the economy, adversely affecting the allocation of scarce resources. - Cit stabilizes the economy.
- Dit is only because the improvement in equity justifies the reduction in efficiency.
19What do rent control and communist central planning have in common?
- AThey both rely on the invisible hand to direct resources.
- BThey both create an equitable allocation of resources.
- CThey both create an efficient allocation of resources.
- DThey both directly control prices and adversely affect the allocation of resources.
20A market economy rewards people according to
- Atheir ability to produce things that other people are willing and able to pay for.
- Btheir needs.
- Ctheir ability to produce things of cultural importance.
- Dtheir ability to meet planned output targets.
21Taxing high incomes at a higher rate than low incomes is most likely to alter incentives and do which of the following?
- Apromote equity and hinder efficiency
- Bpromote equity and promote efficiency
- Chinder equity and hinder efficiency
- Dhinder equity and promote efficiency
22Upon what does a country's standard of living depend?
- Athe amount of gold and silver the country has
- Bthe average amount of money individuals in the country have
- Cits ability to produce goods and services that people are willing and able to pay for
- Dits ability to protect its workers from foreign competition
23A worker in India can earn $1 per day making cotton cloth on a hand loom. A worker in the United States can earn $100 per day making cotton cloth with a mechanical loom. What accounts for the difference in wages?
- AIndia has a low-wage policy to make its textile industry more competitive in world markets.
- BU.S. textile workers belong to a union.
- CLabor is much more productive making cotton cloth with a mechanical loom than with a hand loom.
- DThere is no demand for cotton cloth in India and great demand in the U.S.
24Which is the best statement about the way economists study the economy?
- AThey devise theories regardeing human behavior, collect data, then analyze the data to test the
theories. - BThey collect data, analyze it, then devise theories based on the data analysis.
- CThey use a purely probabilistic approach based on correlations between economic events.
- DThey use controlled experiments much the way a biologist or physicist does in a lab.
- AThey devise theories regardeing human behavior, collect data, then analyze the data to test the
25What would be the best statement about a theory based on assumptions which are not always true?
- AIf the assumptions underlying the theory are not true, the theory must be false.
- BThe ideas may be good in theory, but not in practice.
- CThe theory is nonetheless a good one if it helps us to better understand how the world works.
- DThe theory is a good one if no logical mistakes were made in developing it.
26Economists use models in order to
- Amake their profession appear more precise.
- Blearn how the economy works through the simplifying assumptions of the model.
- Cmaintain all of the complexity of the real world.
- Dmake sure that all of the details of the economy are included in their analysis.
27The following questions are based on the graph below.
On the production possibilities graph shown, which point represents the maximum possible production of CDs for this economy?- AA
- BF
- CC
- DD
28On the production possibilities graph shown, which point represents the maximum possible production of pizzas for this economy?
- AG
- BB
- CC
- DD
29On the production possibilities graph shown, which point or points are efficient?
- AA, B, and D
- BC, F, and G
- CE
- DD
30On the production possibilities graph shown, which point or points are inefficient?
- AA, B, and D
- BC, F, and G
- CE
- DD
31On the production possibilities graph shown below, the opportunity cost to the economy of getting the 10 additional gutters by moving from point A to point B is
- A30 buns
- B20 buns
- C10 buns
- DIt is impossible to know the opportunity cost without knowing the cost of the resources used to
produce the additional gutters.
32In the production possibilities graph shown below, the movement of the frontier from A to B can best be described as
- Aeconomic growth.
- Ba disaster for society.
- Can improvement in income distribution toward greater equity.
- Da misallocation of resources.
33In the production possibilities graph shown below, what is the opportunity cost to society of the movement from point C to point A?
- A1000 bananas
- B500 bananas
- C900 oranges
- D600 oranges
- E300 oranges
34Which of the following is a topic of study in microeconomics but not macroeconomics?
- Athe impact of minimum-wage laws on employment in the fast-food industry
- Bthe impact of monetary policy on the rate of inflation
- Cthe effect of changes in saving rates on GDP
- Dthe effect of tax policy on the rate of economic growth
35Positive statements are
- Aprescriptive, making a claim about how the world ought to be.
- Bdescriptive, making a claim about how the world is.
- Coptimistic, putting the best possible interpretation on things.
- Daffirmative, justifying existing economic policy,
36Normative statements are
- Aprescriptive, making a claim about how the world ought to be.
- Bdescriptive, making a claim about how the world is.
- Cstatements about the normal condition of the world.
- Dstatements which establish production goals for the economy.
37Economist Milton believes that macroeconomic policy cannot be used effectively to reduce fluctuations in the economy. Economist Paul disagrees. Their disagreement can best be described as
- Aa disagreement about the validity of alternative positive economic theories.
- Ba disagreement about the degree of power that should be embodied in the Federal Reserve.
- Ca disagreement about the desirability of smoothing out the business cycle.
- Da disagreement about the effects on economic welfare which result from reduced fluctuations in the
economy.
38Fad or populist economics often tempts politicians because
- Apoliticians are, by nature, quite gullible.
- Bpoliticians always believe the public is quite gullible.
- Cpoliticians in a democracy are eager to find easy and novel solutions to hard and persistent
problems. - Dmost politicians are trained economists and can make scientific judgments about the merits of these
fads.
39Policies such as rent control, minimum wage laws, tariffs and import quotas persist in spite of the fact that economists are nearly united in their opposition to these policies. Which of the following is the best explanation for this situation?
- AEconomists have not yet convinced or educated the general public to the fact that the policies are
undesirable. - BEconomists are simply wrong about the economic impact of these policies.
- CEconomists have entirely different values than do most people.
- DEconomists are usually of a different political party than are lawmakers.
- AEconomists have not yet convinced or educated the general public to the fact that the policies are
40People who provide you with goods and services in a market economy
- Aare acting out of generosity.
- Bare acting exclusively out of concern for your welfare.
- Care required to do so by government.
- Ddo so out of self interest because they get something in return.
- Eall of the above
41Which of the following is not correct?
- ATrade allows for specialization.
- BTrade is good for nations.
- CTrade is based on absolute advantage.
- DTrade allows individuals or nations to consume outside of their production possibilities curve.
42For the following questions, use the graphs and figures below which illustrate the production possibilities available to George and Martha with 40 hours of labor. The opportunity cost of 1 meal for George is
- A2 books.
- B4 books.
- C1/2 book.
- D4 meals.
43The opportunity cost of 1 meal for Martha is
- A40 books.
- B1/40 book.
- C1/8 book.
- D8 books.
44The opportunity cost of 1 book for Martha is
- A5 meals.
- B1/8 meal.
- C40 meals.
- D5 labor hours.
45The opportunity cost of 1 book for George is
- A2 meals
- B1/2 meal.
- C40 labor hours.
- D120 labor hours.
46Martha has an absolute advantage in __________ and George has an absolute advantage in __________.
- Aboth goods, neither good
- Bneither good, both goods
- Cbooks, meals
- Dmeals, books
47Martha has a comparative advantage in __________ and George has a comparative advantage in __________.
- Ameals, books
- Bboth goods, neither good
- Cbooks, meals
- Dneither good, meals
48Martha should specialize in __________ and George should specialize in __________.
- Ameals, books
- Bbooks, meals
- Cbooks, neither good
- Dboth goods, meals
49In the absence of trade, if both George and Martha devote 1/2 of their time (20 hours) to the production of each good, total consumption of books will be __________ and total consumption of meals will be __________.
- A42,9
- B21, 4.5
- C9,42
- D4.5, 21
50If both George and Martha specialize in the good in which they have a comparative advantage, total production of books will be __________ and total production of meals will be __________.
- A40,4
- B42,9
- C9,42
- D4,40
51Comparative advantage is based on
- Aabsolute labor productivity.
- Brelative labor costs.
- Crelative opportunity costs.
- Ddollar price.
52Trade is based on
- Aabsolute advantage.
- Brelative opportunity costs.
- Cproduction costs.
- Drelative dollar prices.
53Trade can benefit society as a whole because it allows
- Afor a more efficient use of resources.
- Bfor goods to be obtained at a lower opportunity cost.
- Cpeople to specialize in activities in which that have a comparative advantage.
- Dall of the above are correct
54Adam Smith
- Awas one of the first scholars to write about the principle of the invisible hand.
- Bfirst wrote about the benefits available from trade in the 18th Century.
- Cis considered the founder of modern economics.
- Dall the above are true.
55David Ricardo
- Awrote books opposing the ideas of Adam Smith.
- Bargued in favor of Britain following a free-trade policy by abolishing trade barriers with Europe.
- Cis considered the founder of modern economics.
- Dall of the above are true.
56Adam Smith was the author of
- AAn Inquiry into the Nature and Causes of the Wealth of Nations.
- BPrinciples of Political Economy and Taxation.
- CThe General Theory of Prices and Employment.
- DWhy Nations Trade.
57Economists generally support
- Atrade restrictions.
- Bgovernment management of trade.
- Cfree international trade.
- Dexport subsidies.
58If wages in the U.S. are higher than in Mexico,
- Athe U.S. can still benefit from trade with Mexico.
- BMexico will not have a comparative advantage in any good.
- Ctrade with Mexico will lower the average wage in the U.S.
- Dboth b and c are correct.
59In a free market, what determines how much of a good will be sold and the price at which it is sold?
- Athe government
- Bproducer suppliers
- Cconsumer demanders
- Dboth producer suppliers and consumer demanders
60A market is
- Aa place where only buyers come together.
- Ba place where only sellers meet.
- Ca group of demanders and suppliers of a particular good or service.
- Da group of people with common desires.
61If a good is a "normal good," then an increase in income will result in
- Ano change in the demand for the good.
- Ba decrease in the demand for the good.
- Can increase in the demand for the good.
- Da lower market price.
62If the price of a substitute to good X increases, then
- Athe demand for good X will increase.
- Bthe market price of good X will decrease.
- Cthe demand for good X will decrease.
- Dthe demand for good X will not change.
63Suppose that a decrease in the price of X results in less of good Y sold. This would mean that X and Y are
- Acomplementary goods.
- Bsubstitute goods.
- Cunrelated goods.
- Dnormal goods.
- Eluxury goods.
64If a decrease in income increases the demand for a good, then
- Athe good is a substitute good.
- Bthe good is a complement good.
- Cthe good is a normal good.
- Dthe good is inferior.
- Ethe good is a luxury good.
65The only determinant of quantity demanded or quantity supplied is
- Athe price of a substitute good.
- Bthe price of a complement good.
- Cthe price of the good itself.
- Dthe number of sellers in the market.
66What will happen in the rice market if buyers are expecting higher prices in the near future?
- AThe demand for rice will intensify now.
- BThe demand for rice will weaken now.
- CThe demand for rice will be unaffected.
- DThe supply of rice will intensify now.
67Whenever we talk of demand curves or movement along the demand curve,
- Aonly price is held constant.
- Ball nonprice determinants of demand are assumed to be constant.
- Cincome and the price of the good are held constant.
- Dall determinants of quantity demanded are held constant.
68Ceteris Paribus is a Latin phrase that literally means
- A"after this therefore because of this."
- B"to respond slowly to a change in price."
- C"all other things being equal."
- D"everything held constant."
69Market demand or the market demand curve for a particular good or service
- Arepresents how much of the good or service sellers are willing and able to produce and make
available for sale. - Bis the (horizontal) sum of all the individual demands or demand curves for a particular good or
service. - Cis the same thing as an individual's demand.
- Dreflects a positive, or direct, relationship between price and quantity demanded.
- Arepresents how much of the good or service sellers are willing and able to produce and make
70If the number of buyers in the market decreases,
- Athe demand in the market will increase.
- Bthe supply in the market will increase.
- Cthe demand in the market will decrease.
- Dthe supply in the market will decrease.
- Ethe demand and supply will decrease.
71Suppose that scientists find evidence that proves a correlation between eating chocolate pudding and hair growth. It appears that the consumption of chocolate pudding increases hair growth in men who are balding. All else equal, we would expect to see
- Ano change in the demand for chocolate pudding.
- Ba decrease in the demand for chocolate pudding.
- Can increase in the demand for chocolate pudding.
- Da decrease in the supply of chocolate pudding.
72When the price of a good or service changes,
- Athere is a movement along a stable demand curve.
- Bdemand shifts in the opposite direction.
- Cdemand shifts in the same direction.
- Dthere is a change in quantity demanded in the same direction as the change in price.
73Suppose that John receives a pay increase. We would expect
- AJohn's demand for normal goods to remain unchanged.
- BJohn's demand for inferior goods to decrease.
- CJohn's demand for luxury goods to decrease.
- DJohn's demand for normal goods to decrease.
74The downward-sloping demand curve reflects which of the following?
- AThe price is positively related to quantity supplied.
- BThere is an inverse relationship between price and quantity demanded.
- CThere is a direct relationship between price and quantity demanded.
- DWhen the price falls, buyers willingly buy less.
75What is the law of demand?
- AWhen the price of a good or service rises, buyers respond by purchasing more, all else equal.
- BWhen income levels increase, buyers respond by purchasing more, all else equal.
- CWhen buyer tastes for the good increase, they purchase more of the good.
- DWhen the price of a good falls, buyers respond by purchasing more, all else equal.
76The relationship between price and quantity supplied is
- Apositive, or direct.
- Bnegative, or inverse.
- Cthe same as the relationship between price and quantity demanded.
- DThere is no relationship between price and quantity supplied.
77Price acts as
- Aan incentive to sellers.
- Ba constraint to buyers.
- Ca way of quantifying perceived value of a good or service in a market.
- Da signal for rationing a good or service to its highest and best use.
- EAll of the above answers are correct.
78Other things equal, when the price of a good falls, the quantity supplied of the good also falls. This is
- Athe law of increasing costs.
- Bthe law of nature.
- Cthe law of supply.
- Dthe law of demand.
79Technological advancement
- Aenables a firm to produce the same amount using fewer resources.
- Benables a firm to produce more using the same resources.
- Creduces the costs of production.
- DAll of the above answers are correct.
80A supply curve slopes upward because
- Aan increase in price gives producers incentive to supply a larger quantity.
- Ban increase in input prices increases supply.
- Ca decrease in input prices decreases supply
- Das more is produced, per unit costs of production fall.
81An increase in the price of oranges would
- Alead to an increased supply of oranges.
- Blead to a movement upwards along the supply curve for oranges, increasing quantity supplied.
- Clead to an increased demand for oranges.
- Dlead to a reduction in the prices of inputs used in orange production.
82At the equilibrium price,
- Aeveryone in the market has been satisfied.
- Bbuyers have bought all they wish to buy.
- Csellers have sold all they want to sell.
- Dthe amount sellers want to sell equals the amount buyers want to buy at that price.
- EAll of the above are correct.
83When there is excess supply in a market,
- Athere is downward pressure on price.
- Bthere is upward pressure on price.
- Cthe market could still be in equilibrium.
- Dthere are too many buyers chasing too few goods.
84In most free markets,
- Asurpluses and shortages are only temporary.
- Bequilibrium is established quickly.
- Cthe law of supply and demand is prevalent.
- DAll of the above are correct.
- ENone of the above is correct.
85Buyers generally buy more of a good when
- Atheir incomes are higher.
- Bthe prices of substitutes for the good rise.
- Cthe prices of complements of the good fall.
- DAll of the above answers are correct.
- ENone of the above answers is correct.
86In general, in economics elasticity is
- Athe friction that develops between buyer and seller in a market.
- Ba measure of how much government intervention is prevalent in a market.
- Ca measure of how much buyers and sellers respond to changes in market conditions, such as prices
- Da measure of the competitive nature of a market.
87Economists use the concept of price elasticity of demand to
- Ameasure how much buyers respond to changes in the price of the good.
- Bmeasure how much sellers respond to changes in the price of the good.
- Cmeasure how much worse off consumers are when the price of the good changes.
- Dmeasure how much buyers respond to changes in their incomes.
88Demand is said to be elastic
- Aif the price of the good responds substantially to changes in the quantity demanded.
- Bif the demand shifts substantially when the price of the good changes.
- Cif the quantity demanded responds substantially to changes in the price of the good.
- Dif buyers don't respond much to changes in the price of the good.
89Demand is said to be inelastic
- Aif the price of the good responds only slightly to changes in the quantity demanded.
- Bif the demand shifts only slightly when the price of the good changes.
- Cif buyers respond substantially to changes in the price of the good.
- Dif the quantity demanded changes only slightly when the price of the good changes substantially.
90If a good is a necessity, the price elasticity of demand for the good would tend to be
- Aelastic.
- Binelastic.
- Cunit elastic.
- Dhorizontal.
91Price elasticity of demand for a good would tend to be more price sensitive, or elastic,
- Athe greater the availability of complements.
- Bthe longer the period of time there is at hand in which to make a buying decision.
- Cthe broader the definition of the market.
- Dthe fewer the availability of substitutes there are.
92The demand for a good tends to be more price sensitive or price elastic
- Athe greater the availability of close substitutes.
- Bthe narrower the definition of the market.
- Cthe longer the period of time in which to make a buying decision.
- DAll of the above are correct.
- ENone of the above are correct.
93Economists compute the price elasticity of demand as
- Athe percentage change in the price divided by the percentage change in quantity demanded.
- Bthe percentage change in the quantity demanded divided by the percentage change in price.
- Cthe change in quantity demanded divided by the change in the price.
- Dthe percentage change in the quantity demanded divided by the percentage change in income.
94Suppose that the price of product X is reduced from $1.45 to $1.25 and, as a result, the quantity of X demanded increases from 2,000 to 2,200. The demand for X in the given price range
- Ahas decreased.
- Bis unit elastic (midpoint method).
- Cis elastic (midpoint method).
- Dis inelastic (midpoint method).
95If the price elasticity of demand for a good is 1.22, then using the standard (not midpoint) method of computing elasticity, a 10 percent increase in price would be expected to result in a
- A1.22 percent decrease in the quantity demanded.
- B1.22 percent increase in the quantity demanded.
- C12.2 percent decrease in the quantity demanded.
- D122 percent decrease in the quantity demanded.
- E10 percent increase in the quantity demanded.
96The main reason for using the midpoint method to compute the coefficient of elasticity is
- Athat it gives the same answer regardless of the direction of change in price and quantity.
- Bthat it uses fewer numbers.
- Cthat it rounds prices to the nearest dollar.
- Dthat it rounds quantities to the nearest whole unit.
97A perfectly elastic demand curve implies that
- Abuyers will not respond to a change in price.
- Bany rise in price above that represented by the demand curve will result in no output demanded.
- Cthe demand is necessarily on top of the horizontal axis.
- Dprice will rise by an infinite amount when there is a change in quantity demanded.
98In any market, total revenue is
- Athe price of the good divided by the price elasticity of demand of the good.
- Bthe price of the good multiplied by the quantity of the good sold.
- Cthe price of the good plus the quantity of the good sold.
- Dthe price of the good multiplied by the quantity of the good sold less the costs of production.
99Suppose that you own a business that makes and sells jewelry boxes. A business consultant tells you that she has determined that you face an elastic demand for your jewelry boxes. If you want to increase your total revenue, assuming all other forces remain unchanged, you should
- Adecrease the price of your jewelry boxes.
- Bincrease the price of your jewelry boxes.
- Cnot change the price of your jewelry boxes.
- Dsell one jewelry box for the price of two.
100When demand is price elastic in the current price range,
- Aan increase in price would increase total revenue because the reduction in the quantity demanded is
so great that it more than offsets the increase in price. - Ban increase in price would decrease total revenue because the reduction in quantity demanded is so
great that it more than offsets the increase in price. - Ca decrease in price would decrease total revenue because less would be sold.
- Da decrease in price would not affect the total revenue.
- Aan increase in price would increase total revenue because the reduction in the quantity demanded is
Información
- Descripción
- Test sobre Micro, creado por Derek Lasky el 18/02/2018.
- Autor
- Derek Lasky
- Idioma
- English
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