Economics MCQ and Calculating Questions Guide | Microeconomics | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

Part 1: MCQ
1. Economics deals primarily with the concept of a. scarcity. b. money. c. poverty. d. banking.
2. Suppose after graduating from college you get a job working at a bank earning
20miliions VND per year. After two years of working at the bank earning the same salary,
you have an opportunity to enroll in a one-year graduate program that would require you to
quit your job at the bank. Which of the following should not be included in a calculation of your opportunity cost?
a. the 45miliions VND salary that you will be able to earn after having completed your graduate program
b. the 20miliions VND salary that you could have earned if you retained your job at the bank
c. the cost of tuition and books to attend the graduate program
d. the value of insurance coverage and other employee benefits you would have
received if you retained your job at the bank.
3. When consumers face rising gasoline prices, they typically
a. reduce their quantity demanded more in the long run than in the short run.
b. reduce their quantity demanded more in the short run than in the long run.
c. do not reduce their quantity demanded in the short run or the long run.
d. increase their quantity demanded in the short run but reduce their quantity demanded in the long run.
4. Which of the following is not a determinant of the demand for a particular good?
a. the prices of the inputs used to produce the good b. income c. tastes d. the prices of related goods
5. Currently you purchase 6 packages of hot dogs a month. You will graduate from college
in December, and you will start a new job in January. You have no plans to purchase
hot dogs in January. For you, hot dogs are a. an inferior good b. a normal good. c. a substitute good d. a complementary good.
6. If a price ceiling is higher than the initial equilibrium price, then
a. there will be no effect on the market price or quantity sold.
b. there will be a shortage in the market.
c. the market will be less efficient than it would be without the price ceiling.
d. there will be a surplus in the market.
7. For which of the following goods would demand be most elastic? a. Tommy Hilfiger jeans b. blue jeans c. Clothing
d. All three would have the same elasticity of demand since they are all related. Price Pa Pb D1 D3 D2 Quantity 8. Figure 1
Refer to Figure 1. As price falls from Pa to Pb, which demand curve represents the most elastic demand? a. D1 b. D2 c. D3
d. All of the above are equally elastic.
Part 2: True/False Questions
1.If wages for bankers increase, then bankers’ leisure time would have a lower opportunity cost.
2. When the quantity supplied exceeds quantity demanded at the current market price, the
market has a surplus and market price will likely rise in the future to eliminate the surplus.
3. A price ceiling set above the equilibrium price causes quantity demanded to exceed quantity supplied.
4. The demand for gasoline will respond more to a change in price over a period of five
weeks than over a period of five years.
Part 3: Calculating Questions
The market demand and supply for pumpkins are given as below: Price Quantity Quantity ($/kg) supplied demanded 4.0 80 30 3.5 68 35 3.0 62 40 2.5 55 45 2.0 50 50 1.5 45 55 1.0 38 60 a.
Find the market equilibrium price and quantity. b.
If the government imposes a ceiling price of $1.5, what will happen in the market? c.
If the government imposes a floor price of $2.5 and then buys all the surplus.
How much will the government need to spend? d.
If the government buys all the pumpkins supplied at the price of $2.5 and then
sells them to the market. What is the price that the government can set in order to sell all the pumpkins. e.
Suppose that the government subsidizes the sellers $1/kg. Write new demand
and supply schedule. Find new equilibrium price and quantity