Accredited Test Bank Solution For
Microeconomics, 6th Edition Besanko
[All Lessons Included]
Complete Chapter Solution Manual
are Included (Ch.1 to Ch.17)
Rapid Download
Quick Turnaround
Complete Chapters Provided
, Table of Contents are Given Below
Here is the list of chapters in "Microeconomics," 6th Edition, by David Besanko and Ronald Braeutigam:
Part 1: Introduction to Microeconomics
1. Analyzing Economic Problems
2. Demand and Supply Analysis
Part 2: Consumer Theory
3. Consumer Preferences and the Concept of Utility
4. Consumer Choice
5. The Theory of Demand
Part 3: Production and Cost Theory
6. Inputs and Production Functions
7. Costs and Cost Minimization
8. Cost Curves
Part 4: Perfect Competition
9. Perfectly Competitive Markets
10. Competitive Markets: Applications
Part 5: Market Power
11. Monopoly and Monopsony
12. Capturing Surplus
Part 6: Imperfect Competition and Strategic Behavior
13. Market Structure and Competition
14. Game Theory and Strategic Behavior
15. Risk and Information
Part 7: Special Topics
16. General Equilibrium Theory
17. Externalities and Public Goods
PAGE 1
,This comprehensive structure covers fundamental and advanced topics in microeconomics, providing a solid
foundation for understanding economic theory and its real-world applications.
SECTION 1: ANALYZING ECONOMIC PROBLEMS (33 MCQS)
1. Which of the following best describes a positive economic statement?
A. It is based on personal judgments or opinions.
B. It concerns what ought to be.
C. It aims to describe and explain economic phenomena.
D. It suggests how resources should be allocated.
Answer: C
Explanation: Positive statements describe “what is” and are testable by reference to facts, whereas normative
statements involve value judgments about “what ought to be.”
2. A decision-maker ignores sunk costs because:
A. Sunk costs provide valuable information about future costs.
B. Sunk costs cannot be recovered and thus should not affect current choices.
C. Sunk costs measure opportunity costs accurately.
D. Sunk costs are the total economic costs of a choice.
Answer: B
Explanation: Sunk costs are already incurred and irretrievable. They do not affect marginal costs or the
benefits of a current decision.
3. The concept of opportunity cost refers to:
A. The monetary expense of a choice.
B. The out-of-pocket expenditure of an action.
C. The highest-valued alternative forgone when a choice is made.
D. The sum of all alternative costs when a choice is made.
Answer: C
Explanation: Opportunity cost is defined as the value of the next best alternative that one foregoes when
making a decision.
4. An economic model is best described as:
A. A complete depiction of all real-world factors.
B. An abstract representation that omits minor details to focus on key relationships.
PAGE 2
, C. A tool used only in macroeconomic analysis.
D. A precise reflection of reality with no assumptions.
Answer: B
Explanation: Economic models simplify reality to focus on the most relevant variables, using assumptions to
facilitate analysis.
5. Marginal analysis involves:
A. Comparing total benefits to total costs.
B. Making decisions based on incremental costs and benefits.
C. Calculating average costs for each unit.
D. Ignoring extra costs in order to speed decision-making.
Answer: B
Explanation: Marginal analysis considers the additional benefits and additional costs of a decision, guiding
optimal choices.
6. In a ceteris paribus analysis:
A. All variables are allowed to change simultaneously.
B. All variables are kept constant except for the one under examination.
C. Monetary factors remain constant, but non-monetary factors vary.
D. Only normative factors are kept constant.
Answer: B
Explanation: Ceteris paribus is a Latin phrase meaning “all other things being equal,” used to isolate the effect
of one variable on another.
7. Which of the following is an example of a normative economic question?
A. “Does a higher minimum wage reduce employment?”
B. “Should the government increase the minimum wage to improve living standards?”
C. “What is the equilibrium wage in a competitive market?”
D. “How does a minimum wage affect the labor supply curve?”
Answer: B
Explanation: Normative questions deal with judgments about what should be done. This contrasts with positive
questions, which focus on observable outcomes.
PAGE 3
Microeconomics, 6th Edition Besanko
[All Lessons Included]
Complete Chapter Solution Manual
are Included (Ch.1 to Ch.17)
Rapid Download
Quick Turnaround
Complete Chapters Provided
, Table of Contents are Given Below
Here is the list of chapters in "Microeconomics," 6th Edition, by David Besanko and Ronald Braeutigam:
Part 1: Introduction to Microeconomics
1. Analyzing Economic Problems
2. Demand and Supply Analysis
Part 2: Consumer Theory
3. Consumer Preferences and the Concept of Utility
4. Consumer Choice
5. The Theory of Demand
Part 3: Production and Cost Theory
6. Inputs and Production Functions
7. Costs and Cost Minimization
8. Cost Curves
Part 4: Perfect Competition
9. Perfectly Competitive Markets
10. Competitive Markets: Applications
Part 5: Market Power
11. Monopoly and Monopsony
12. Capturing Surplus
Part 6: Imperfect Competition and Strategic Behavior
13. Market Structure and Competition
14. Game Theory and Strategic Behavior
15. Risk and Information
Part 7: Special Topics
16. General Equilibrium Theory
17. Externalities and Public Goods
PAGE 1
,This comprehensive structure covers fundamental and advanced topics in microeconomics, providing a solid
foundation for understanding economic theory and its real-world applications.
SECTION 1: ANALYZING ECONOMIC PROBLEMS (33 MCQS)
1. Which of the following best describes a positive economic statement?
A. It is based on personal judgments or opinions.
B. It concerns what ought to be.
C. It aims to describe and explain economic phenomena.
D. It suggests how resources should be allocated.
Answer: C
Explanation: Positive statements describe “what is” and are testable by reference to facts, whereas normative
statements involve value judgments about “what ought to be.”
2. A decision-maker ignores sunk costs because:
A. Sunk costs provide valuable information about future costs.
B. Sunk costs cannot be recovered and thus should not affect current choices.
C. Sunk costs measure opportunity costs accurately.
D. Sunk costs are the total economic costs of a choice.
Answer: B
Explanation: Sunk costs are already incurred and irretrievable. They do not affect marginal costs or the
benefits of a current decision.
3. The concept of opportunity cost refers to:
A. The monetary expense of a choice.
B. The out-of-pocket expenditure of an action.
C. The highest-valued alternative forgone when a choice is made.
D. The sum of all alternative costs when a choice is made.
Answer: C
Explanation: Opportunity cost is defined as the value of the next best alternative that one foregoes when
making a decision.
4. An economic model is best described as:
A. A complete depiction of all real-world factors.
B. An abstract representation that omits minor details to focus on key relationships.
PAGE 2
, C. A tool used only in macroeconomic analysis.
D. A precise reflection of reality with no assumptions.
Answer: B
Explanation: Economic models simplify reality to focus on the most relevant variables, using assumptions to
facilitate analysis.
5. Marginal analysis involves:
A. Comparing total benefits to total costs.
B. Making decisions based on incremental costs and benefits.
C. Calculating average costs for each unit.
D. Ignoring extra costs in order to speed decision-making.
Answer: B
Explanation: Marginal analysis considers the additional benefits and additional costs of a decision, guiding
optimal choices.
6. In a ceteris paribus analysis:
A. All variables are allowed to change simultaneously.
B. All variables are kept constant except for the one under examination.
C. Monetary factors remain constant, but non-monetary factors vary.
D. Only normative factors are kept constant.
Answer: B
Explanation: Ceteris paribus is a Latin phrase meaning “all other things being equal,” used to isolate the effect
of one variable on another.
7. Which of the following is an example of a normative economic question?
A. “Does a higher minimum wage reduce employment?”
B. “Should the government increase the minimum wage to improve living standards?”
C. “What is the equilibrium wage in a competitive market?”
D. “How does a minimum wage affect the labor supply curve?”
Answer: B
Explanation: Normative questions deal with judgments about what should be done. This contrasts with positive
questions, which focus on observable outcomes.
PAGE 3
