Test bank complete_
Principles of microeconomics, 12th edition,
By karl e. Case, ray c. Fair & sharon e. Oster
all chapters 1-22| 5 units| latest edition with all verified answers| rated a+
,part i: introduction to economics-------------------------------------------------------------------------------- 3
chapter 1: the scope and method of economics --------------------------------------------------------------------- 3
chapter 2: the economic problem: scarcity and choice ----------------------------------------------------------- 39
chapter 3: demand, supply, and market equilibrium -------------------------------------------------------------- 67
chapter 4: demand and supply applications ----------------------------------------------------------------------- 107
chapter 5: elasticity ------------------------------------------------------------------------------------------------------- 127
part ii: the market system -------------------------------------------------------------------------------------- 146
chapter 6: household behavior and consumer choice ----------------------------------------------------------- 146
chapter 7: the production process: the behavior of profit-maximizing firms ----------------------------- 182
chapter 8: short-run costs and output decisions ------------------------------------------------------------------ 217
chapter 9: long-run costs and output decisions ------------------------------------------------------------------- 263
chapter 10: input demand: the labor and land markets -------------------------------------------------------- 307
chapter 11: input demand: the capital market and the investment decision ----------------------------- 343
chapter 12: general equilibrium and the efficiency of perfect competition ------------------------------- 373
part iii: market imperfections and the role of government -------------------------------------------- 404
chapter 13: monopoly and antitrust policy ------------------------------------------------------------------------- 404
chapter 14: oligopoly ----------------------------------------------------------------------------------------------------- 456
chapter 15: monopolistic competition ------------------------------------------------------------------------------- 484
chapter 16: externalities, public goods, and common resources --------------------------------------------- 514
chapter 17: uncertainty and asymmetric information ---------------------------------------------------------- 561
chapter 18: income distribution and poverty ---------------------------------------------------------------------- 582
chapter 19: public finance: the economics of taxation ---------------------------------------------------------- 613
part iv: the world economy ------------------------------------------------------------------------------------ 645
chapter 20: international trade, comparative advantage, and protectionism ---------------------------- 645
chapter 21: economic growth in developing economies ------------------------------------------------------- 686
part v: methodology --------------------------------------------------------------------------------------------- 707
chapter 22. critical thinking about research------------------------------------------------------------------------ 707
,part i: introduction to economics
chapter 1: the scope and method of economics
karl e. case: principles of microeconomics, 12th edition, test bank
1.1 why study economics?
1 multiple choice
1) the reasons to study economics include which of the following?
a) to be an informed voter
b) to understand society and global affairs
c) to learn a way of thinking
d) all of the above
ans: d
economics equips individuals with critical thinking skills (c), insight into complex global
and societal issues (b), and enables better civic participation (a). all listed options are
valid reasons for studying economics.
diff: 1
topic: why study economics?
skill: fact
2) marginalism is
a) the best alternative that we forego when making a decision.
b) the study of how societies choose to use scarce resources.
c) a market situation in which profit opportunities are eliminated almost instantaneously.
d) the process of analyzing the additional costs or benefits arising from a decision.
ans: d
,marginalism focuses on the "margin"—meaning the next or additional unit. it helps in
assessing the impact of small changes, such as the added benefit or cost of producing one
more unit of a good.
diff: 1
topic: why study economics?
skill: definition
3) economics is best defined as the study of
a) financial decision-making.
b) how consumers make purchasing decisions.
c) choices made by people faced with scarcity.
d) inflation, unemployment, and economic growth.
ans: c
at its core, economics is about how individuals and societies make choices when
resources are limited. it includes but is not limited to financial or consumer behavior,
making (c) the most accurate definition.
diff: 2
topic: why study economics?
skill: definition
4) the industrial revolution refers to the rise of the modern factory system in during
the late eighteenth and early nineteenth centuries.
a) the united states
b) england
c) france
d) germany
ans: b
the industrial revolution began in england due to its access to resources, capital, and
innovations in machinery, setting the stage for large-scale industrial production.
,diff: 1
topic: why study economics?
skill: fact
5) which of the following statements is correct?
a) economics is a natural science.
b) in large measure, economics is the study of how people make choices.
c) if poverty was eliminated there would be no reason to study economics.
d) economic analysis can be used to explain how societies, but not individuals, make
decisions.
ans: b
economics is a social science centered around decision-making under scarcity. (a) is false
because economics is not a natural science. (c) and (d) misrepresent the scope and
applicability of economics.
diff: 1
topic: why study economics?
skill: fact
6) economics is the study of
a) how to invest in the stock market.
b) how society uses limited resources.
c) the role of money in markets.
d) how government officials decide which goods and services are produced.
ans: b
economics analyzes how scarce resources are allocated among competing uses, including
production, distribution, and consumption—making (b) the most comprehensive answer.
diff: 2
topic: why study economics?
skill: definition
, 7) costs that cannot be avoided, because they have already been incurred are known as
a) differential costs.
b) marginal costs.
c) opportunity costs.
d) sunk costs.
ans: d
sunk costs are past expenses that cannot be recovered and should not affect current
decision-making. they are different from opportunity or marginal costs, which involve
forward-looking choices.
diff: 2
topic: why study economics?
skill: definition
8) suppose that two weeks ago you purchased a ticket to the symphony for $40. last week
someone invited you to go camping on the same night as the symphony concert. you
would much rather go camping than go to the symphony. you have tried unsuccessfully
to sell the symphony concert ticket. which of the following statements regarding this
situation is correct?
a) the $40 symphony ticket should be irrelevant in your decision making, because it
represents the marginal cost of going camping.
b) the $40 you paid for the symphony ticket should be irrelevant in your decision making,
because it is a sunk cost.
c) the $40 you paid for the symphony ticket is relevant to the decision, as this represents
the opportunity cost of going camping.
d) you should base your decision on whether or not going camping will provide you with
more than $40 in satisfaction.
ans: b
Principles of microeconomics, 12th edition,
By karl e. Case, ray c. Fair & sharon e. Oster
all chapters 1-22| 5 units| latest edition with all verified answers| rated a+
,part i: introduction to economics-------------------------------------------------------------------------------- 3
chapter 1: the scope and method of economics --------------------------------------------------------------------- 3
chapter 2: the economic problem: scarcity and choice ----------------------------------------------------------- 39
chapter 3: demand, supply, and market equilibrium -------------------------------------------------------------- 67
chapter 4: demand and supply applications ----------------------------------------------------------------------- 107
chapter 5: elasticity ------------------------------------------------------------------------------------------------------- 127
part ii: the market system -------------------------------------------------------------------------------------- 146
chapter 6: household behavior and consumer choice ----------------------------------------------------------- 146
chapter 7: the production process: the behavior of profit-maximizing firms ----------------------------- 182
chapter 8: short-run costs and output decisions ------------------------------------------------------------------ 217
chapter 9: long-run costs and output decisions ------------------------------------------------------------------- 263
chapter 10: input demand: the labor and land markets -------------------------------------------------------- 307
chapter 11: input demand: the capital market and the investment decision ----------------------------- 343
chapter 12: general equilibrium and the efficiency of perfect competition ------------------------------- 373
part iii: market imperfections and the role of government -------------------------------------------- 404
chapter 13: monopoly and antitrust policy ------------------------------------------------------------------------- 404
chapter 14: oligopoly ----------------------------------------------------------------------------------------------------- 456
chapter 15: monopolistic competition ------------------------------------------------------------------------------- 484
chapter 16: externalities, public goods, and common resources --------------------------------------------- 514
chapter 17: uncertainty and asymmetric information ---------------------------------------------------------- 561
chapter 18: income distribution and poverty ---------------------------------------------------------------------- 582
chapter 19: public finance: the economics of taxation ---------------------------------------------------------- 613
part iv: the world economy ------------------------------------------------------------------------------------ 645
chapter 20: international trade, comparative advantage, and protectionism ---------------------------- 645
chapter 21: economic growth in developing economies ------------------------------------------------------- 686
part v: methodology --------------------------------------------------------------------------------------------- 707
chapter 22. critical thinking about research------------------------------------------------------------------------ 707
,part i: introduction to economics
chapter 1: the scope and method of economics
karl e. case: principles of microeconomics, 12th edition, test bank
1.1 why study economics?
1 multiple choice
1) the reasons to study economics include which of the following?
a) to be an informed voter
b) to understand society and global affairs
c) to learn a way of thinking
d) all of the above
ans: d
economics equips individuals with critical thinking skills (c), insight into complex global
and societal issues (b), and enables better civic participation (a). all listed options are
valid reasons for studying economics.
diff: 1
topic: why study economics?
skill: fact
2) marginalism is
a) the best alternative that we forego when making a decision.
b) the study of how societies choose to use scarce resources.
c) a market situation in which profit opportunities are eliminated almost instantaneously.
d) the process of analyzing the additional costs or benefits arising from a decision.
ans: d
,marginalism focuses on the "margin"—meaning the next or additional unit. it helps in
assessing the impact of small changes, such as the added benefit or cost of producing one
more unit of a good.
diff: 1
topic: why study economics?
skill: definition
3) economics is best defined as the study of
a) financial decision-making.
b) how consumers make purchasing decisions.
c) choices made by people faced with scarcity.
d) inflation, unemployment, and economic growth.
ans: c
at its core, economics is about how individuals and societies make choices when
resources are limited. it includes but is not limited to financial or consumer behavior,
making (c) the most accurate definition.
diff: 2
topic: why study economics?
skill: definition
4) the industrial revolution refers to the rise of the modern factory system in during
the late eighteenth and early nineteenth centuries.
a) the united states
b) england
c) france
d) germany
ans: b
the industrial revolution began in england due to its access to resources, capital, and
innovations in machinery, setting the stage for large-scale industrial production.
,diff: 1
topic: why study economics?
skill: fact
5) which of the following statements is correct?
a) economics is a natural science.
b) in large measure, economics is the study of how people make choices.
c) if poverty was eliminated there would be no reason to study economics.
d) economic analysis can be used to explain how societies, but not individuals, make
decisions.
ans: b
economics is a social science centered around decision-making under scarcity. (a) is false
because economics is not a natural science. (c) and (d) misrepresent the scope and
applicability of economics.
diff: 1
topic: why study economics?
skill: fact
6) economics is the study of
a) how to invest in the stock market.
b) how society uses limited resources.
c) the role of money in markets.
d) how government officials decide which goods and services are produced.
ans: b
economics analyzes how scarce resources are allocated among competing uses, including
production, distribution, and consumption—making (b) the most comprehensive answer.
diff: 2
topic: why study economics?
skill: definition
, 7) costs that cannot be avoided, because they have already been incurred are known as
a) differential costs.
b) marginal costs.
c) opportunity costs.
d) sunk costs.
ans: d
sunk costs are past expenses that cannot be recovered and should not affect current
decision-making. they are different from opportunity or marginal costs, which involve
forward-looking choices.
diff: 2
topic: why study economics?
skill: definition
8) suppose that two weeks ago you purchased a ticket to the symphony for $40. last week
someone invited you to go camping on the same night as the symphony concert. you
would much rather go camping than go to the symphony. you have tried unsuccessfully
to sell the symphony concert ticket. which of the following statements regarding this
situation is correct?
a) the $40 symphony ticket should be irrelevant in your decision making, because it
represents the marginal cost of going camping.
b) the $40 you paid for the symphony ticket should be irrelevant in your decision making,
because it is a sunk cost.
c) the $40 you paid for the symphony ticket is relevant to the decision, as this represents
the opportunity cost of going camping.
d) you should base your decision on whether or not going camping will provide you with
more than $40 in satisfaction.
ans: b
