Microeconomics Practice Test
1)When Fresh Express Salads decides to mechanically pick all of its lettuce, it directly
answers the
question.
A) what
*B) how
C) for whom
D) where
E) when
2)In economics, cost is measured as , and benefit is measured as .
*A) what you must give up to get something; what you are willing to give up to get it
B)what you are willing to give up to get it; what you must give up to get something
C) the amount of money that you pay for something; the amount of money that someone
else is willing to pay you
D) what you are willing to pay on the margin; what the government pays you when you are
unemployed or retired
E)the amount of money that you pay on the margin; the amount of money that you
receive on the margin
3)While moving along a production possibilities frontier, the amount of labor ,
the amount of capital , and the level of technology .
A) is fixed; is fixed; varies
B)varies; is fixed; varies
C) varies; is fixed; is fixed
*D) is fixed; is fixed; is fixed
E) varies; varies; varies
4)Scott and Cindy both produce only pizza and tacos. In one hour, Scott can produce
20 pizzas or 40 tacos. In one hour, Cindy can produce 30 pizzas or 40 tacos. Based on
these data,
A) Cindy has a comparative advantage at producing tacos.
*B) Scott has a comparative advantage at producing tacos.
C) Cindy and Scott have the same comparative advantage in producing tacos.
D) neither Cindy nor Scott has a comparative advantage in producing tacos.
E)Cindy and Scott have the same comparative advantage in producing pizzas.
5)Consider the market for smart phones. Which of the following shifts the demand curve
rightward?
A) an increase in the price of smart phones
B)a decrease in the price of smart phones
*C) an increase in the price of land-line phone service, a substitute for smart phones
D) a decrease in the number of smart phone buyers
E)an increase in the supply of smart phones.
6)Which of the following does NOT increase the supply of personal computers, that is,
does NOT shift the supply curve of personal computers?
A) an advance in the technology used to produce personal computers
B)an increase in the number of firms producing personal computer
C) a fall in the cost of the components used to assemble personal computers
, *D) a rise the price of a personal computer
E) a change in the expected future price of a personal computer
7)In the above figure, will shift in the demand curve from D to D1.
A) an increase in income if pizza is an inferior good
B)a decrease in the price of a sub sandwich, a substitute for pizza
C) buyers' expectation that pizza will be less expensive next week
*D) a scientific article published that demonstrates eating pizza is good for one's health
E) a fall in the cost of producing pizza
8)Oil refiners can refine a barrel of petroleum so that it yields either more home
heating oil or more diesel fuel. If the price of diesel fuel falls, there is
*A) an increase in the supply of home heating oil.
B)a decrease in the supply of home heating oil.
C) an increase in the quantity of home heating oil supplied.
D) a decrease in the quantity of home heating oil supplied.
E)an increase in the demand for home heating oil.
9)If good weather conditions result in a larger than normal crop of peaches, then the
A) equilibrium price of peaches rises, and the equilibrium quantity of peaches increases.
*B) equilibrium price of peaches falls, and the equilibrium quantity of peaches increases.
C) demand curve for peaches shifts leftward.
D) increase in the supply of peaches induces a greater demand for peaches, so that the
equilibrium price rises and the equilibrium quantity increases.
E)equilibrium price of peaches falls, and the equilibrium quantity of peaches decreases.
10) In Great Britain, raising taxes on gasoline has
increased the costs of supplying gasoline. As a result, the equilibrium quantity of
gasoline , and the equilibrium price of gasoline .
A) increases; rises
B)increases; falls
*C) decreases; rises
D) decreases; falls
1)When Fresh Express Salads decides to mechanically pick all of its lettuce, it directly
answers the
question.
A) what
*B) how
C) for whom
D) where
E) when
2)In economics, cost is measured as , and benefit is measured as .
*A) what you must give up to get something; what you are willing to give up to get it
B)what you are willing to give up to get it; what you must give up to get something
C) the amount of money that you pay for something; the amount of money that someone
else is willing to pay you
D) what you are willing to pay on the margin; what the government pays you when you are
unemployed or retired
E)the amount of money that you pay on the margin; the amount of money that you
receive on the margin
3)While moving along a production possibilities frontier, the amount of labor ,
the amount of capital , and the level of technology .
A) is fixed; is fixed; varies
B)varies; is fixed; varies
C) varies; is fixed; is fixed
*D) is fixed; is fixed; is fixed
E) varies; varies; varies
4)Scott and Cindy both produce only pizza and tacos. In one hour, Scott can produce
20 pizzas or 40 tacos. In one hour, Cindy can produce 30 pizzas or 40 tacos. Based on
these data,
A) Cindy has a comparative advantage at producing tacos.
*B) Scott has a comparative advantage at producing tacos.
C) Cindy and Scott have the same comparative advantage in producing tacos.
D) neither Cindy nor Scott has a comparative advantage in producing tacos.
E)Cindy and Scott have the same comparative advantage in producing pizzas.
5)Consider the market for smart phones. Which of the following shifts the demand curve
rightward?
A) an increase in the price of smart phones
B)a decrease in the price of smart phones
*C) an increase in the price of land-line phone service, a substitute for smart phones
D) a decrease in the number of smart phone buyers
E)an increase in the supply of smart phones.
6)Which of the following does NOT increase the supply of personal computers, that is,
does NOT shift the supply curve of personal computers?
A) an advance in the technology used to produce personal computers
B)an increase in the number of firms producing personal computer
C) a fall in the cost of the components used to assemble personal computers
, *D) a rise the price of a personal computer
E) a change in the expected future price of a personal computer
7)In the above figure, will shift in the demand curve from D to D1.
A) an increase in income if pizza is an inferior good
B)a decrease in the price of a sub sandwich, a substitute for pizza
C) buyers' expectation that pizza will be less expensive next week
*D) a scientific article published that demonstrates eating pizza is good for one's health
E) a fall in the cost of producing pizza
8)Oil refiners can refine a barrel of petroleum so that it yields either more home
heating oil or more diesel fuel. If the price of diesel fuel falls, there is
*A) an increase in the supply of home heating oil.
B)a decrease in the supply of home heating oil.
C) an increase in the quantity of home heating oil supplied.
D) a decrease in the quantity of home heating oil supplied.
E)an increase in the demand for home heating oil.
9)If good weather conditions result in a larger than normal crop of peaches, then the
A) equilibrium price of peaches rises, and the equilibrium quantity of peaches increases.
*B) equilibrium price of peaches falls, and the equilibrium quantity of peaches increases.
C) demand curve for peaches shifts leftward.
D) increase in the supply of peaches induces a greater demand for peaches, so that the
equilibrium price rises and the equilibrium quantity increases.
E)equilibrium price of peaches falls, and the equilibrium quantity of peaches decreases.
10) In Great Britain, raising taxes on gasoline has
increased the costs of supplying gasoline. As a result, the equilibrium quantity of
gasoline , and the equilibrium price of gasoline .
A) increases; rises
B)increases; falls
*C) decreases; rises
D) decreases; falls
