Test Bank l
PrinciplesofMicroeconomics
l l
FOURTH EDITION l
N. Gregory Mankiw
l l
Harvard University l
Prepared by l
Daniel K. Biedermanl l
University of North Dakota
l l l
Kenneth H. Brown l l
University of Northern Iowa
l l l
Lisa K. Jepsen l l
University of Northern Iowa
l l l
Bryce Kanago l
University of Northern Iowa
l l l
Ken McCormick
l
University of Northern Iowa
l l l
, TestlBank
PrinciplesloflMicroeconomics,l4thlEdition
N.lGregorylMankiw
Preparedlby
DaniellK.lBiederman,lKennethlH.lBrown,lLisalK.lJepsen,lBrycelKanago,landlKenlMcCormick.
VP/EditoriallDirector: Sr.lProductionlProjectlManager: AssistantlEditor:
JacklW.lCalhoun EmilylS.lGross ErinlBerger
Editor-in-Chief: ManagerloflTechnology,lEditorial:
AncillarylCoordinator:
AlexlvonlRosenberg VickylTrue
ErinlM.lDonohoe
Publisher: TechnologylProjectlEditor:
StevelMomper DanalCowden ArtlDirector:
MichellelKunkler
Sr.lAcquisitionslEditor:
MikelWorls WeblCoordinator: ProductionlArtist:
KarenlSchaffer PattilHudepohl
DevelopmentallEditor:
JanelTufts Sr.lManufacturinglCoordinator: InternallandlCoverlDesigner:
SandeelMilewski StrattonlDesign
ContributinglEditors:
SarahlK.lDorgerlJ ProductionlHouse: CoverlIllustration:
enniferlE.lBaker OffCenterlConceptlHouse TatelGallery,lLondon/ArtlResource,lNY
Sr.lMarketinglManager: Printer:lGlobu InternallIllustrator:
BrianlJoyner slPrintinglMinst WilliamlLow/CobaltlIllustrationlServices
Assoc.lMarketinglCommunicationsl er,lOH
Manager:
SarahlGreber
COPYRIGHTl©l2007 ALLlRIGHTSlRESERVED.lNolpartlof Forlpermissionltoluselmateriallfromlthislte
ThomsonlSouth- thislworklcoveredlbylthelcopyrightlhere xtlorlproduct,lsubmitlalrequestlonlinelatlht
Western,lalpartloflThelThomsonlCorporat onlmaylbelreproducedlorlusedlinlanylfor tp://www.thomsonrights.com.
ion.lThomson,lthelStarllogo,landlSouth- mlorlbylanylmeans—
Westernlareltrademarkslusedlhereinlund graphic,lelectronic,lorlmechanical,lincl Forlmorelinformationlaboutlourlp
erllicense. udinglphotocopying,lrecording,ltaping,l roducts,lcontactluslat:
Webldistribution,linformationlstoragela
PrintedlinlthelUnitedlStatesloflAmerical1l ndlretrievallsystems,lorlinlanylotherlma ThomsonlLearninglAcademiclResourcel
2ll3ll4l 5ll09ll08ll07l 06 nner— Center
exceptlaslmaylbelpermittedlbylthellicen 1-800-423-0563
ISBNl0-324-31895-2 seltermslherein.
ThomsonlHigherlEducation
5191lNatorplBoulevard
Mason,lOHl45040l
USA
,Contents
Preface v
Chapterl1lTenlPrinciplesloflEconomics 1
Chapterl2lThinkinglLikelanlEconomist 35
Chapterl3lInterdependencelandlthelGainslfromlTrade 80
Chapterl4lThelMarketlForcesloflSupplylandlDemand 117
Chapterl5lElasticitylandlItslApplications 169
Chapterl6lSupply,lDemand,landlGovernmentlPolicies 217
Chapterl7lConsumers,lProducers,landlthelEfficiencyloflMarkets 261
Chapterl8lApplication:lThelCostsloflTaxation 305
Chapterl9lApplication:lInternationallTrade 345
Chapterl10lExternalities 389
Chapterl11lPubliclGoodslandlCommonlResources 435
Chapterl12lThelDesignloflthelTaxlSystem 474
Chapterl13lThelCostsloflProduction 522
Chapterl14lFirmslinlCompetitivelMarkets 574
Chapterl15lMonopoly 621
Chapterl16lOligopoly 674
Chapterl17lMonopolisticlCompetition 726
Chapterl18lThelMarketslforlthelFactorsloflProduction 769
Chapterl19lEarningslandlDiscrimination 814
Chapterl20lIncomelInequalitylandlPoverty 858
Chapterl21lThelTheoryloflConsumerlChoice 898
Chapterl22lFrontiersloflMicroeconomics 946
iii
,
PrinciplesofMicroeconomics
l l
FOURTH EDITION l
N. Gregory Mankiw
l l
Harvard University l
Prepared by l
Daniel K. Biedermanl l
University of North Dakota
l l l
Kenneth H. Brown l l
University of Northern Iowa
l l l
Lisa K. Jepsen l l
University of Northern Iowa
l l l
Bryce Kanago l
University of Northern Iowa
l l l
Ken McCormick
l
University of Northern Iowa
l l l
, TestlBank
PrinciplesloflMicroeconomics,l4thlEdition
N.lGregorylMankiw
Preparedlby
DaniellK.lBiederman,lKennethlH.lBrown,lLisalK.lJepsen,lBrycelKanago,landlKenlMcCormick.
VP/EditoriallDirector: Sr.lProductionlProjectlManager: AssistantlEditor:
JacklW.lCalhoun EmilylS.lGross ErinlBerger
Editor-in-Chief: ManagerloflTechnology,lEditorial:
AncillarylCoordinator:
AlexlvonlRosenberg VickylTrue
ErinlM.lDonohoe
Publisher: TechnologylProjectlEditor:
StevelMomper DanalCowden ArtlDirector:
MichellelKunkler
Sr.lAcquisitionslEditor:
MikelWorls WeblCoordinator: ProductionlArtist:
KarenlSchaffer PattilHudepohl
DevelopmentallEditor:
JanelTufts Sr.lManufacturinglCoordinator: InternallandlCoverlDesigner:
SandeelMilewski StrattonlDesign
ContributinglEditors:
SarahlK.lDorgerlJ ProductionlHouse: CoverlIllustration:
enniferlE.lBaker OffCenterlConceptlHouse TatelGallery,lLondon/ArtlResource,lNY
Sr.lMarketinglManager: Printer:lGlobu InternallIllustrator:
BrianlJoyner slPrintinglMinst WilliamlLow/CobaltlIllustrationlServices
Assoc.lMarketinglCommunicationsl er,lOH
Manager:
SarahlGreber
COPYRIGHTl©l2007 ALLlRIGHTSlRESERVED.lNolpartlof Forlpermissionltoluselmateriallfromlthislte
ThomsonlSouth- thislworklcoveredlbylthelcopyrightlhere xtlorlproduct,lsubmitlalrequestlonlinelatlht
Western,lalpartloflThelThomsonlCorporat onlmaylbelreproducedlorlusedlinlanylfor tp://www.thomsonrights.com.
ion.lThomson,lthelStarllogo,landlSouth- mlorlbylanylmeans—
Westernlareltrademarkslusedlhereinlund graphic,lelectronic,lorlmechanical,lincl Forlmorelinformationlaboutlourlp
erllicense. udinglphotocopying,lrecording,ltaping,l roducts,lcontactluslat:
Webldistribution,linformationlstoragela
PrintedlinlthelUnitedlStatesloflAmerical1l ndlretrievallsystems,lorlinlanylotherlma ThomsonlLearninglAcademiclResourcel
2ll3ll4l 5ll09ll08ll07l 06 nner— Center
exceptlaslmaylbelpermittedlbylthellicen 1-800-423-0563
ISBNl0-324-31895-2 seltermslherein.
ThomsonlHigherlEducation
5191lNatorplBoulevard
Mason,lOHl45040l
USA
,Contents
Preface v
Chapterl1lTenlPrinciplesloflEconomics 1
Chapterl2lThinkinglLikelanlEconomist 35
Chapterl3lInterdependencelandlthelGainslfromlTrade 80
Chapterl4lThelMarketlForcesloflSupplylandlDemand 117
Chapterl5lElasticitylandlItslApplications 169
Chapterl6lSupply,lDemand,landlGovernmentlPolicies 217
Chapterl7lConsumers,lProducers,landlthelEfficiencyloflMarkets 261
Chapterl8lApplication:lThelCostsloflTaxation 305
Chapterl9lApplication:lInternationallTrade 345
Chapterl10lExternalities 389
Chapterl11lPubliclGoodslandlCommonlResources 435
Chapterl12lThelDesignloflthelTaxlSystem 474
Chapterl13lThelCostsloflProduction 522
Chapterl14lFirmslinlCompetitivelMarkets 574
Chapterl15lMonopoly 621
Chapterl16lOligopoly 674
Chapterl17lMonopolisticlCompetition 726
Chapterl18lThelMarketslforlthelFactorsloflProduction 769
Chapterl19lEarningslandlDiscrimination 814
Chapterl20lIncomelInequalitylandlPoverty 858
Chapterl21lThelTheoryloflConsumerlChoice 898
Chapterl22lFrontiersloflMicroeconomics 946
iii
,
