01 Basic Concepts

Test for chapter 1

1、单选题:
‌Microeconomics studies the allocation of‎
选项:
A: decision makers.
B: scarce resources.
C: models.
D: unlimited resources.
答案: 【 scarce resources.

2、单选题:
​Most microeconomic models assume that decision makers wish to‍
选项:
A: make themselves as well off as possible.
B: act selfishly.
C: make others as well off as possible.
D: None of the above.
答案: 【 make themselves as well off as possible.

3、单选题:
​What links the decisions of consumers and firms in a market?‍
选项:
A: the government.
B: prices.
C: coordination officials.
D: microeconomics.
答案: 【 prices.

4、单选题:
‎Economic models are most often tested‏
选项:
A: using computer simulations.
B: using data from the distant past.
C: using data from the real world.
D: using logic alone.
答案: 【 using data from the real world.

5、单选题:
​Which of the statements below is/are normative?‏
选项:
A: Economists need to include more reality in their models.
B: Economists will use a model until it is refuted by someone.
C: Microeconomists study economic growth.
D: B and C
答案: 【 Microeconomists study economic growth.

6、单选题:
​According to the Law of Demand, the demand curve for a good will​
选项:
A: shift leftward when the price of the good increases.
B: shift rightward when the price of the good increases.
C: slope downward.
D: slope upward.
答案: 【 slope downward.

7、单选题:
​If the price of automobiles were to increase substantially, the demand curve for gasoline would most likely‌
选项:
A: shift leftward.
B: shift rightward.
C: remain unchanged.
D: become steeper.
答案: 【 shift leftward.

8、单选题:
​The expression "increase in quantity supplied" is illustrated graphically as a‌
选项:
A: leftward shift in the supply curve.
B: rightward shift in the supply curve.
C: movement up along the supply curve.
D: movement down along the supply curve.
答案: 【 movement up along the supply curve.

9、单选题:
‎A market equilibrium occurs‏
选项:
A: only with government regulation.
B: only because of the profit motive of firms.
C: only because of the complacency of consumers.
D: through the interaction of self-interested consumers and producers.
答案: 【 through the interaction of self-interested consumers and producers.

10、单选题:
‎If oranges were found to cure cancer,‌
选项:
A: the equilibrium price of apples would likely fall.
B: the equilibrium price of oranges would likely increase in the near term.
C: the equilibrium quantity of oranges would likely increase.
D: All of the above.
答案: 【 All of the above.

11、单选题:
‏The change in price that results from a leftward shift of the supply curve will be greater if‏
选项:
A: the demand curve is relatively steep than if the demand curve is relatively flat.
B: the demand curve is relatively flat than if the demand curve is relatively steep.
C: the demand curve is horizontal than if the demand curve is vertical.
D: the demand curve is horizontal than if the demand curve is downward sloping.
答案: 【 the demand curve is relatively steep than if the demand curve is relatively flat.

12、单选题:
‎A vertical demand curve for a particular good implies that consumers are‏
选项:
A: sensitive to changes in the price of that good.
B: not sensitive to changes in the price of that good.
C: irrational.
D: not interested in that good.
答案: 【 not sensitive to changes in the price of that good.

13、单选题:
‏Suppose the demand function for a good is expressed as Q = 100 - 4p. If the good currently sells for $10, then the price elasticity of demand equals​
选项:
A: -1.5.
B: -0.67.
C: -4
D: -2.5.
答案: 【 -0.67.

14、单选题:
‌The price elasticity of supply when the supply curve is Q = 5 is‌
选项:
A: 5
B: perfectly inelastic.
C: perfectly elastic.
D: Cannot be calculated from the information provided.
答案: 【 perfectly inelastic.

15、单选题:
​ In the late 1980s, the health benefits of oat bran were widely advertised. If the price of oats increased 50%, causing the quantity of oats supplied to increase by 40%, then the price elasticity of supply was‍
选项:
A: 1.25.
B: 1.25.
C: -0.80.
D: 0.80.
答案: 【 0.80.

02 Consumer Choice

Test for chapter 2

1、单选题:
​An indifference curve represents bundles of goods that a consumer​
选项:
A: views as equally desirable.
B: ranks from most preferred to least preferred.
C:  refers to any other bundle of goods.
D: All of the above.
答案: 【 views as equally desirable.

2、单选题:
​If two bundles are on the same indifference curve, then‏
选项:
A: the consumer derives the same level of utility from each.
B:  the consumer derives the same level of ordinal utility from each but not the same level of cardinal utility.
C: no comparison can be made between the two bundles since utility cannot really be measured.
D: B and C. 
答案: 【 the consumer derives the same level of utility from each.

3、单选题:
‍Joe's income is $500, the price of food (F) is $2 per unit, and the price of shelter (S) is $100. Which of the following represents his budget constraint?‎
选项:
A: 500 = 2F + 100S
B: F = 250 - 50S
C: S = 5 - 0.02F
D: All of the above.
答案: 【 All of the above.

4、单选题:
‌The assumption of completeness means that‎
选项:
A: the consumer can rank all possible consumption bundles.
B: more of a good is always better.
C:  the consumers can rank all affordable consumption bundles.
D: all preferences conditions are met.
答案: 【 the consumer can rank all possible consumption bundles.

5、单选题:
‎Utility is the set of numerical values that​
选项:
A: yields an absolute level of pleasure from a bundle of goods.
B: reflects the relative ranking of various bundles of goods.
C: describes how much more a consumer prefers one bundle to another.
D: yields a cardinal ranking of bundles.
答案: 【 reflects the relative ranking of various bundles of goods.

6、单选题:
‍Joe's budget constraint equals 500 = 2F + 100S, where $500 is Joe's income, $2 is the price of food (F) and $100 is the price of shelter (S). How much food can Joe buy if he buys one unit of shelter?‎
选项:
A: 2 units
B:  200 units
C:  250 units
D: 400 units
答案: 【  200 units

7、单选题:
‍ If both prices decreases by 50%, ​
选项:
A: budget constraint will be unchanged.
B: slope of the budget constraint will increase.
C: slope of the budget constraint will decrease.
D: budget constraint will shift outward in a parallel fashion.
答案: 【 budget constraint will shift outward in a parallel fashion.

8、单选题:
‌The marginal rate of transformation of y for x represents‍
选项:
A: the slope of the budget constraint.
B: the rate at which the consumer must give up y to get one more x.
C:  -Px/Py. 
D: All of the above.
答案: 【 All of the above.

9、单选题:
‌If Fred's marginal utility of pizza equals 10 and his marginal utility of salad equals 2, then‎
选项:
A:  he would give up 5 pizzas to get the next salad.
B: he would give up 5 salads to get the next pizza.
C: he will eat five times as much pizza as salad.
D: he will eat five times as much salad as pizza.
答案: 【 he would give up 5 salads to get the next pizza.

10、单选题:
‌The fact that your fourth slice of pizza does not generate as much satisfaction as your third slice is an example of ‌
选项:
A: consumer surplus. 
B: diminishing total utility. 
C: diminishing marginal utility. 
D:  the paradox of value. 
答案: 【 diminishing marginal utility. 

03 Applying Consumer Theory

Test for chapter 3

1、单选题:
‌The consumer is in equilibrium when‍
选项:
A: MRT = MRS.
B: Px/Py. = MUx/MUy.
C: the budget line is tangent to the indifference curve at the bundle chosen.
D: All of the above.
答案: 【 All of the above.

2、单选题:
‏Sandy derives utility from consuming "all other goods," g, and clean air (measured by particulate matter removed per m3), a, as measured by the utility function U(g,a) = g0.6a0.4. The price of "all other goods" is $20 and the price of clean air (abatement) equals $10. Brian is the only other consumer in the market for clean air and demands 10 units of clean air. What is the market demand for clean air?​
选项:
A: Total market demand is 14 units of clean air. 
B: Total market demand is 12 units of clean air.
C: Total market demand is 10 units of clean air. 
D: Total market demand is 16 units of clean air. 
答案: 【 Total market demand is 14 units of clean air. 

3、单选题:
‏An individual's demand curve for a good can be derived by measuring the quantities selected as​
选项:
A: the price of the good changes.
B: the price of substitute goods changes.
C:  income changes.
D: All of the above.
答案: 【 the price of the good changes.

4、单选题:
‎When the price of a good changes, the substitution effect can be found by comparing the equilibrium quantities purchased‌
选项:
A: on the old budget line and the new budget line.
B: on the original indifference curve when faced with the original prices and when faced with the new prices.
C: on the new budget line and a hypothetical budget line that is a shift back to the original indifference curve parallel to the new budget line.
D: on the new indifference curve.
答案: 【 on the original indifference curve when faced with the original prices and when faced with the new prices.

5、单选题:
‏One reason more sport utility vehicles (SUVs) are driven in the United States than in Europe is‎
选项:
A: different marginal rates of substitution.
B:  different marginal rates of transformation.
C: the United States hasn't had a recession since 2000-2001.
D: Either A or B
答案: 【 the United States hasn't had a recession since 2000-2001.

6、单选题:
‍A movement upward along an upward sloping Engel curve corresponds to‎
选项:
A:  upward sloping indifference curves.
B: crossing indifference curves.
C: a rotation in the budget constraint.
D: a parallel shift in the budget constraint.
答案: 【 a parallel shift in the budget constraint.

7、单选题:
​Data shows that United States college students purchase more e-books than German college students. Assuming that all students have identical preferences for e-books and textbooks, what is the likely explanation for this result? ‍
选项:
A: Taxes on textbooks are higher in the United States than taxes on textbooks in Germany. 
B: Taxes on textbooks are lower in the United States than taxes on textbooks in Germany.
C: The price of textbooks is cheaper in the United States than textbooks in Germany. 
D: Both A and C. 
答案: 【 Taxes on textbooks are higher in the United States than taxes on textbooks in Germany. 

8、单选题:
‍ By selecting a bundle where MRS = MRT, the consumer is saying‏‍‏
选项:
A:  "I value my last unit of each good equally."
B: "I am willing to trade one good for the other at the same rate that I am required to do so."
C: "I will equate the amounts spent on all goods consumed."
D: All of the above.
答案: 【 "I am willing to trade one good for the other at the same rate that I am required to do so."

9、单选题:
‎ Both Sally and Sam receive a 10% raise in a single year. Sally increases her demand for ground beef whereas Sam decreases his demand for ground beef.‌
选项:
A:  This is impossible.
B: This is only possible if Sally considers ground beef an inferior good, and Sam views it as a normal good.
C: This is only possible if Sally has lower income than Sam.
D:  This is only possible if Sally considers ground beef a normal good and Sam views it as an inferior good.
答案: 【  This is only possible if Sally considers ground beef a normal good and Sam views it as an inferior good.

10、单选题:
‏ When the price of a good changes, the income effect can be found by comparing the equilibrium quantities purchased‏‏‏
选项:
A: on the old budget line and the new budget line.
B: on the original indifference curve when faced with the original prices and when faced with the new prices.
C: on the new budget li

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