Micro Final Practice (Exam 1 Questions)

Melissa needs to pay her rent and her electric bill.

Robert must decide between studying for his psychology exam and working at his part-time job.

Lisa can spend her money on a new smart phone or on a weekend trip.

Kevin must choose between buying a new flat screen television and buying his textbooks for his semester.

Mitch chooses to work overtime to earn extra income for his family.

The unemployment rate in the US has fallen by 2% in the last few years.

Megan sells her physics textbook from last semester to her roommate for half the price of a new textbook.

All are correct.

1

1.8

0.3

None are correct.

A change in expectations about the future price of the good or service.

A change in the price of the good or service.

A change in the price of a related good or service.

A change in income.

the goods are produced using only some of society's available resources.

it is impossible to produce more of one good without producing less of the other.

all members of society consume equal portions of the goods.

the opportunity cost of producing more of one good is zero.

the price of tennis ball increases.

there is no longer a market for tennis balls.

the price of tennis balls decreases.

the price of tennis balls does not change.

of improvements in technology.

opportunity costs are constant.

resources are not completely adaptable.

trade-offs inevitably create unemployment.

and airline ticket

gasoline

an antique car

a bus ticket

a decrease in the consumption of textbooks and a decease in the consumption of Ramen noodles.

a decrease in the consumption of textbooks and an increase in the consumption of Ramen noodles.

an increase in the consumption of textbooks and a decrease in the consumption of Ramen noodles.

an increase in the consumption of textbooks and an increase in the consumption of Ramen noodles.

quantity demanded responds to a change in price.

quantity demanded responds to a change in income.

demand responds to a change in supply.

price responds to a change in demand.

both Jared's indifference curves and his budget constraint change.

Jared's indifference curves change, but his budget constraint does not change.

Neither Jared's indifference curves nor his budget constraint change.

Jared's budget constraint changes, but his indifference curves do not change.

rises, the quantity demanded of the good rises.

falls, the quantity demanded of the good rises.

falls, the demand for the good rises.

rises, the demand for the good falls.

1

1.8

0.8

2.4

opinions and values.

scientific judgement and education.

scientific judgement and values.

opinions and education.

The marginal benefit of going to Ft. Lauderdale decreases.

The marginal benefit of going to Cancun increases.

The marginal cost of going to Ft. Lauderdale decreases.

The marginal cost of going to Cancun decreases.

Inflation is more harmful to the economy than unemployment is.

When public policies are evaluated, the benefits to the economy of improved equality should be considered more important than the costs of reduced efficiency.

Prices rise when the government prints too much money.

If welfare payments increase, the world will be a better place.

purchases made by consumers.

consumption bundles that a consumer can afford.

prices that a consumer chooses a pay for products he consumes.

consumption bundles that give a consumer equal satisfaction.

3.17, and Tess regards handbags as inferior goods.

3.17, and Tess regards handbags as normal goods.

0.32, and Tess regards handbags as inferior goods.

0.32, and Tess regards handbags as normal goods.

descriptive, whereas positive statements are perspective.

backward-looking, whereas positive statements are forward-looking.

forward-looking, whereas positive statements are backward-looking.

prescriptive, whereas positive statements are descriptive.