Microeconomics Quiz Questions: Chapters 1 to 4 Insights | Microeconomics | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

Questions Chapter 1,2,3.
1. Economics is the best defined as the study of
a. How society manages its scarce resources.
b. How to run a. business most profitably.
c. How to predict inflation, unemployment, and stock prices.
d. How the government can stop the harm from unchecked self-interest.
2. Your opportunity cost of going to a movie is a. The price of ticket.
b. The price of ticket plus the cost of any soda and popcorn you buy at the theatre.
c. The total cash expenditure needed to go to the movie plus the value of your time.
d. Zero, as long as you enjoy the movie and consider it a worthwhile use of your time and money.
3. A marginal change is one that
a. Is not important for public policy.
b. Incrementally alters an existing plan.
c. Makes an outcome inefficient.
d. Does not influence incentives.
4. Opportunity cost is best defined as.
a. How much money is paid for something.
b. How much money is paid for something, taking inflation into account.
c. The highest-valued alternative that is given up to get something.
d. All the alternatives that are given up to get something.
5. Suppose a country, when operating on its PPF, can produce 2 tons of butter and 200 cars
or 3 tons of butter and 150 cars. The opportunity cost of 1 ton of butter is a. 200 cars. b. 300 cars. c. 50 cars. d. 0 cars.
6. A lawn service is deciding whether to add an additional employee to its summer crew.
The marginal cost of hiring this worker depends on the
a. the additional revenue created by having an additional worker.
b. total amount paid to previously hired workers.
c. total amount paid to the new worker.
d. the total amount paid to all the workers, both the new one and the previously hired workers.
7. A cost due to an increase in activity is called a. an incentive loss.
b. A negative marginal benefit. c. A marginal cost. d. The total cost.
8. Adam Smith’s “invisible hand” refer to
a. The subtle and often hidden methods that business uses to profit at consumers’expense.
b. The ability of free markets to reach desirable outcomes, despite the self-interest of market participants.
c. The ability of government regulation to benefit consumers, even if the consumers are unaware of the regulations.
d. The way in which producers or consumers in unregulated markets impose costs on innocent bystanders.
9. Governments may intervene in a market economy in order to a. Protect property rights
b. Correct a market failure due to externalities.
c. Achieve a more equal distribution of income. d. All of the above. 10. An economic model is
a. A mechanical machine that replicates the functioning of economy.
b. A fully detailed, realistic description of the economy
c. A simplified representation of some aspect of the economy
d. A computer program that predicts the future of the economy.
11. The circular-flow diagram illustrates that, in markets for the factors of production.
a. Households are sellers, and firms are buyers.
b. Households are buyers, and firms are sellers.
c. Households and firms are both buyers.
d. Households and firms are both sellers.
12. A point inside the production possibilities frontier is
a. Efficient but not feasible.
b. Feasible but not efficient.
c. Both feasible and efficient.
d. Neither efficient nor feasible.
13. that in the United States, producing an aircraft takes 10,000 hours of labor and producing
a shirt takes 2 hours of labor. In China, producing an aircraft takes 40,000 hours of labor
and producing a shirt takes 4 hours of labor. What will these nations trade?
a. China will export aircraft, and the United States will export shirts.
b. China will export shirts, and the United States will export aircraft.
c. Both nations will export shirts.
d. There are no gains from trade in this situation.
20. Mark can cook dinner in 30 minutes and wash the laundry in 20 minutes. His roommate takes
half as long to do each task. How should the roommates allocate the work?
a. Mark should do more of the cooking based on his comparative advantage.
b. Mark should do more of the washing based on his comparative advantage.
c. Mark should do more of the washing based on his absolute advantage.
d. There are no gains from trade in this situation.
21. In term of dollars, the marginal benefit of working 5 days a week instead 4 days a week is
a. The wage received for the fifth day of work.
b. The wage received for 5 days of work.
c. The wages received for 4 days of work.
d. None of the above answers is correct.
22. after graduating from college you get a job working at a bank earning $30,000 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 cost of tuition and books to attend the graduate program
b. The $30,000 salary that you could have earned if you retained your job at the bank
c. The $45,000 salary that you will be able to earn after having completed your graduate program
d. The value of insurance coverage and other employee benefits you would have received
if you return your job at the bank. Chapter 4.
23. change in which of the following will NOT shift the demand curve for hamburgers? a. the price of hot dogs
b. the price of the hamburgers
c. the price of hamburger buns
d. the income of hamburger consumers
24. increase in ______ will cause a movement along a given demand curve, which is called a change in ______. a. supply, demand b. supply, quantity demanded c. demand, supply d. demand, quantity supplied
25 tickets and DVDs are substitutes. If the price of DVDs increases, what happens in the market for movie tickets?
a. The supply curve shifts to the left
b. The supply curve shifts to the right
c. The demand curve shifts to the left
d. The demand curve shifts to the right
26. Discovery of a large new reserve of crude oil will shift the ______ curve for gasoline,
leading to a _______ equilibrium price. a. supply, higher b. supply, lower c. demand, higher d. demand, lower
27 the economy goes into a recession and incomes fall, what happens in the markets for inferior goods?
a. Prices and quantities both rise
b. Prices and quantities both fall
c. Prices rise, quantities fall
d. Prices fall, quantities rise
28 of the following might lead to an increase in the equilibrium price of jelly and a decrease in
the equilibrium price of jelly sold?
a. an increase in the price of peanut butter, a complement to jelly
b. an increase in the price of Marshmallow fluff, a substitute for jelly
c. an increase in the price of grapes, an input to jelly
d. an increase in consumers' incomes, as long as jelly is a normal good
35 the number of buyers in a market increases and a technological advancement occurs also.
What would we expect to happen in the market?
a. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
b. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous.
c. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
36 something happens to alter the quantity supplied at any given price, then
a. we move along the supply curve.
b. the supply curve shifts.
c. the supply curve becomes steeper.
d. the supply curve becomes flatter.
37 of the following events will definitely cause equilibrium price to fall?
a. demand increases and supply decreases
b. demand and supply both decrease
c. demand decreases and supply increases
d. demand and supply both increase
38 market demand curve shows how the total quantity demanded of a good varies as a. income varies. b. price varies.
c. the number of buyers varies. d. supply varies.