TEST BANK FOR Microeconomics 7th Edition by Jeffrey M. Perloff

TEST BANK FOR Microeconomics 7th Edition by Jeffrey M. Perloff Microeconomics, 7e (Perloff) Chapter 1 Introduction 1.1 Microeconomics: The Allocation of Scarce Resources 1) Microeconomics studies the allocation of A) decision makers. B) scarce resources. C) models. D) unlimited resources. Answer: B Section: The Allocation of Scarce Resources Question Status: Old AACSB: Analytic thinking 2) Microeconomics is often called A) price theory. B) decision science. C) scarcity. D) resource theory. Answer: A Section: The Allocation of Scarce Resources Question Status: Old AACSB: Analytic thinking 3) Most microeconomic models assume that decision makers wish to A) make themselves as well off as possible. B) act selfishly. C) make others as well off as possible. D) None of the above. Answer: A Section: The Allocation of Scarce Resources Question Status: Old AACSB: Analytic thinking 4) Society faces trade-­‐‑offs because of A) government regulations. B) profit motive. C) faceless bureaucrats. D) scarcity. Answer: D Section: The Allocation of Scarce Resources Question Status: Old AACSB: Analytic thinking 5) A market A) always involves the personal exchange of goods for money. B) allows interactions between consumers and firms. C) always takes place at a physical location. D) has no influence on prices. Answer: B Section: The Allocation of Scarce Resources Question Status: Old AACSB: Analytic thinking 6) What links the decisions of consumers and firms in a market? A) the government B) prices C) coordination officials D) microeconomics Answer: B Section: The Allocation of Scarce Resources Question Status: Old AACSB: Analytic thinking 7) The price of a good is A) always equal to the cost of producing the good. B) never affected by the number of buyers and sellers. C) usually determined in a market. D) None of the above. Answer: C Section: The Allocation of Scarce Resources Question Status: Old AACSB: Analytic thinking 8) Who or what is responsible for bringing together scarce resources to produce most of the goods and services in the U.S.? A) the U.S. government B) the United Nations C) the Federal Reserve Bank D) markets and prices Answer: D Section: The Allocation of Scarce Resources Question Status: Revised AACSB: Analytic thinking 9) Which of the following is a fundamental topic addressed by microeconomics? A) whether to extend unemployment insurance B) determining how many new iPhones the Apple company should produce C) the level of inflation in the country D) the impact of interest rates on savings in the economy Answer: B Section: The Allocation of Scarce Resources Question Status: Revised AACSB: Analytic thinking 10) A