Bài tập Kinh tế vi mô bằng tiếng Anh | Đại học Ngoại Thương

lOMoAR cPSD| 36066900 lOMoAR cPSD| 36066900 Test1
I. The following statements are correct or incorrect, why?
1. An increase in price leads to a fall in demand (D) Answer : InCorrect
Evidence : Other things are held constant: P ↑→ Q D ↓ P↓ → Q D ↑ Reasons: - Substitution effect - Income effect
Combination of the 2 effects: P & Q D have a negative relationship. ( not the demand relationship)
2. D↑ and S↓ lead to the decreases in (equilibrium) price and quantity Answer : InCorrect Evidence : D↑→ P↑, Q↑ S↑→ P↓, Q↑
D↑ ,S ↓, → P ↑, Q uncertain
3. A & B are substitutions for each other, a decrease in demand
of B leads to a decrease in price of A. Answer : InCorrect Evidence : Price of substitutions (Ps): PsB↑ DB ↓ DA ↑→ PsA uncertain
4. A & B are complements for each other, an increase in supply of
B leads to a reduction in price of A lOMoAR cPSD| 36066900 PA S S’ 400 200 lOMoAR cPSD| 36066900 Answer : InCorrect Evidence :
the theoretical part of supply has no part of substitutions 5.
An increase in consumers’ income leads to an increase in price Answer : Correct Evidence : Consumer’s income (I) . Normal goods: I ↑ → D ↑ While chance in demand D↑→ P↑, Q ↑ ⇨ I↑→ P↑
6. Moving along a demand curve, an increase in price leads to an increase in total revenue Answer : Correct
Evidence : When demand is price
inelastic, a given percentage change in
price results in a smaller percentage
change in quantity demanded. That
implies that total revenue will move in the
direction of the price change: a reduction in
price will reduce total revenue, and an
increase in price will increase it
7. When income increases, it results in an increase in demand for neccesity goods. Answer : InCorrect
Evidence : As income rises, the proportion of total consumer expenditures on necessity goods typically
declines. Inferior goods have a negative income elasticity of demand; as consumers' income rises, they buy fewer inferior goods.
8. Asume that you are a FTU’s student, what is opportunity cost of studying abroad?
9. PPF will shift outward when the economy moves from an
inefficient bundle (of x and y) to a efficent bundle. Answer : Correct lOMoAR cPSD| 36066900
Evidence : An increase in production capability: PPF shifts outward.
the economy moves from an inefficient bundle to a efficent bundle mean there will have increase in
production capability lead to PPF shift outward. y Impossible bundle (out of capacity of the economy) E A Possible and efficient bundle B y1 Possible and inefficient y2 C F PPF 0 x1 x2 D x