Test Bank for Exploring Microeconomics 7th Edition by Sexton.

Test Item File to Accompany
g g g g




Principles of Microe g g




conomics Test Item Fg g g




ile 2 g



Ninth Edition b
g g




y Case/Fair/Ost
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er




Prentice Hall g




c.2009
10/30/0
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8

,Contents
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Chapterg1 ThegScopegandgMethodgofgEconomics 1
Chapterg2 ThegEconomicgProblem:gScarcitygandgChoice 29
Chapterg3 Demand,gSupply,gandgMarketgEquilibrium 55
Chapterg4 DemandgandgSupplygApplications 98
Chapterg5 Elasticity 117
Chapterg6 HouseholdgBehaviorgandgConsumergChoice 135
Chapterg7 ThegProductiongProcess:gThegBehaviorgofgProfit-MaximizinggFirms 171
Chapterg8 Short-RungCostsgandgOutputgDecisions 207
Chapterg9 Long-RungCostsgandgOutputgDecisions 252
Chapterg10 InputgDemand:gThegLaborgandgLandgMarkets 292
Chapterg11 InputgDemand:gThegCapitalgMarketsgandgInvestmentgDecision 323
Chapterg12 GeneralgEquilibriumgandgthegEfficiencygofgPerfectgCompetition 348
Chapterg13 MonopolygandgAntitrustgPolicy 377
Chapterg14 Oligopoly 425
Chapterg15 MonopolisticgCompetition 449
Chapterg16 Externalities,gPublicgGoods,gImperfectgInformation,ga
ndgSocialgChoice 476
Chapterg17 UncertaintygandgAsymmetricgInformation 517
Chapterg18 IncomegDistributiongandgPoverty 535
Chapterg19 PublicgFinance:gThegEconomicsgofgTaxation 563
Chapterg20 InternationalgTrade,gComparativegAdvantage,gandgProtectionism 592
Chapterg21 EconomicgGrowthgingDevelopinggandgTransitionalgEconomies 628

,Chapter 1 The Scope and Method of Economics
g g g g g g




1.1 WhygStudygEconomics?
1g Multipleg Choice

1) Theg reasonsg tog studyg economicsg includeg whichg ofg theg following?
A) tog beg ang informedg voter B)g tog understandg societyg andg globalg affairs
C)g toglearngagwaygofgthinking
D)gallgofgthegabov
egAnswer:g D
Diff:g1
Topic:g WhygStudygEconomics?g
Skill:g Fact

2) Marginalismg is
A) theg bestg alternativeg thatg weg foregog wheng makingg ag decision.
B) theg studyg ofg howg societiesg chooseg tog useg scarceg resources.
C) ag marketg situationg ing whichg profitg opportunitiesg areg eliminatedg almostg instantaneously.
D) thegprocessgofganalyzinggthegadditionalgcostsgorgbenefitsgarisinggfromgagdecisi
on.gAnswer:g D
Diff:g1
Topic:g WhygStudygEconomics?g
Skill:g Definition

3) Economicsg isg bestg definedg asg theg studyg of
A) financialg decision-making.
B) howg consumersg makeg purchasingg decisions.
C) choicesg madeg byg peopleg facedg withg scarcity.
D) inflation,gunemployment,gandgeconomicggrowth
.gAnswer:g C
Diff:g2
Topic:g WhygStudygEconomics?g
Skill:g Definition

4) ThegIndustrialgRevolutiongrefersgtogthegrisegofgthegmoderngfactorygsystemging
gduring
gtheglategeighteenthgandgearlygnineteenthgcenturies.
A) theg Unitedg States B)g England
C)g France D)g Germany
Answer:g B
Diff:g1
Topic:g WhygStudygEconomics?g
Skill:g Fact




1

, 5) Whichg ofg theg followingg statementsg isg correct?
A) Economicsg isg ag naturalg science.
B) Ing largeg measure,g economicsg isg theg studyg ofg howg peopleg makeg choices.
C) Ifg povertyg wasg eliminatedg thereg wouldg beg nog reasong tog studyg economics.
D) Economicganalysisgcangbegusedgtogexplainghowgsocieties,gbutgnotgindividuals,gma
kegdecisions.
Answer:g B
Diff:g1
Topic:g WhygStudygEconomics?g
Skill:g Fact

6) Economicsg isg theg studyg of
A) howgtog investg ing theg stockg market.
B) howg societyg usesg limitedg resources.
C) theg roleg ofg moneyg ing markets.
D) howggovernmentgofficialsgdecidegwhichggoodsgandgservicesgaregproduce
d.gAnswer:g B
Diff:g2
Topic:g WhygStudygEconomics?g
Skill:g Definition

7) Costsg thatg cannotg beg avoided,g becauseg theyg haveg alreadyg beeng incurredg areg knowng as
A) differentialg costs. B)g marginalg costs.
C)gopportunitygcosts.
D)gsunkgcosts
.gAnswer:g D
Diff:g2
Topic:g WhygStudygEconomics?g
Skill:g Definition

8) Supposegthatgtwogweeksgagogyougpurchasedgagticketgtogthegsymphonygforg$40.gLastgweekg so
meoneginvitedgyougtoggogcampinggongthegsamegnightgasgthegsymphonygconcert.gYougwouldg
muchgratherggogcampinggthanggogtogthegsymphony.gYoughavegtriedgunsuccessfullygtogsellgthe
gsymphonygconcertgticket.gWhichgofgthegfollowinggstatementsgregardinggthisgsituationgisgcorre
ct?
A) Theg$40gsymphonygticketgshouldgbegirrelevantgingyourgdecisiongmaking,gbecause
gitgrepresentsgthegmarginalgcostgofggoinggcamping.
B) Theg$40gyougpaidgforgthegsymphonygticketgshouldgbegirrelevantgingyourgdecisiongmaki
ng,gbecausegitgisgagsunkgcost.
C) Theg$40gyougpaidgforgthegsymphonygticketgisgrelevantgtogthegdecision,gasgthisgrepres
entsgthegopportunitygcostgofggoinggcamping.
D) Yougshouldgbasegyourgdecisiongongwhethergorgnotggoinggcampinggwillgprovidegyoug
withgmoregthang$40gingsatisfaction.
Answer:g B
Diff:g2
Topic:g WhygStudygEconomics?g
Skill:g Conceptual
AACSB:g ReflectivegThinking




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