Question 1

In a perfectly competitive market, firms:

Accepted Answer

A)   determine the number of consumers.
B)   create barriers to entry.
C)   take the market price as given.
D)   have market power.

Question 2

The combined role of risk, uncertainty, and time is prominent in:

Accepted Answer

A)   the decision of which movie to watch.
B)   restaurant decisions.
C)   grocery store shopping decisions.
D)   investment decisions.

Question 3

All of the following are examples of spillover effects EXCEPT:

Accepted Answer

A)   second-hand smoke.
B)   pollution.
C)   price gouging.
D)   road congestion

Question 4

Behavioral economics is considered an intersection of:

Accepted Answer

A)   psychology and economics.
B)   physics and economics.
C)   law and economics.
D)   supply and demand. A

Question 5

The term ceteris paribus is an assumption that economists use implying:

Accepted Answer

A)   all else is equal.
B)   to the victor go the spoils.
C)   nothing can be said to be certain except death and taxes.
D)   the market is always efficient. A

Question 6

If there is a single firm in the market, then the market is considered:

Accepted Answer

A)   monopolistically competitive.
B)   perfectly competitive.
C)   a monopoly.
D)   an oligopoly.

Question 7

Empirical disciplines:

Accepted Answer

A)   use data analysis and experiments.
B)   have a singular focus on theoretical models.
C)   have a singular focus on historical importance.
D)   only examine political topics.

Question 8

Each of the following would impact the production decision EXCEPT the:

Accepted Answer

A)   price of the good.
B)   income of consumers.
C)   price of capital.
D)   technology available for production.

Question 9

Which of the following is NOT a microeconomic topic?

Accepted Answer

A)   a tax on tobacco
B)   expansionary monetary policy
C)   a subsidy for solar power
D)   a quota on taxicabs

Question 10

When comparing a monopoly outcome to a perfectly competitive outcome, the monopolist produces _____ and charges a _____ price.

Accepted Answer

A)   more; higher
B)   less; higher
C)   less; lower
D)   more; lower

Question 11

Each of the following will impact the consumption decision EXCEPT the:

Accepted Answer

A)   price of the good.
B)   income of the consumer.
C)   price of a substitute good.
D)   fixed cost of production.

Question 12

Examples of using theories and models include:

Accepted Answer

A)   understanding how members of OPEC choose how much oil to produce.
B)   explaining how the NBA sets salaries for rookies.
C)   A and B.
D)   none of the above.

Question 13

Which of the following is a microeconomic policy?

Accepted Answer

A)   fiscal policy
B)   monetary policy
C)   rent control
D)   tariffs imposed on all importing nations

Question 14

A major factor in the evolution of empirical analysis in microeconomics is the:

Accepted Answer

A)   influence of John Maynard Keynes.
B)   computer revolution.
C)   influence of Friedrich Hayek.
D)   work of Adam Smith.

Question 15

Which of the following is considered a microeconomic topic?

Accepted Answer

A)   unemployment
B)   inflation
C)   gross domestic product
D)   the telecommunications industry

Question 16

Oligopolies exist when:

Accepted Answer

A)   there are no barriers to entry.
B)   firms are price takers.
C)   the market supply curve reflects the aggregate cost curves of firms.
D)   multiple firms interact strategically in the same market.

Question 17

To learn the intricacies of theories and models, economists use:

Accepted Answer

A)   graphs and mathematics.
B)   their best guess.
C)   Wikipedia.
D)   only the stock market.

Question 18

Microeconomic tools:

Accepted Answer

A)   can only be applied to markets for coffee.
B)   can be applied to any market.
C)   can only be applied to financial markets.
D)   are not used to think rationally about decisions.

Question 19

On the demand side of the market, you would examine:

Accepted Answer

A)   the prices of inputs.
B)   the preferences of consumers.
C)   cost of production data.
D)   the number of firms.

Question 20

On the supply side of the market, you would examine:

Accepted Answer

A)   the decisions of firms.
B)   the preference of consumers.
C)   income of consumers.
D)   the number of consumers. A

Exam 1: Adventures in Microeconomics

In a perfectly competitive market, firms:

Correct AnswerverifiedShow Answer

The combined role of risk, uncertainty, and time is prominent in:

Correct AnswerverifiedShow Answer

All of the following are examples of spillover effects EXCEPT:

Correct AnswerverifiedShow Answer

Behavioral economics is considered an intersection of:

Correct AnswerverifiedA

The term ceteris paribus is an assumption that economists use implying:

Correct AnswerverifiedA

If there is a single firm in the market, then the market is considered:

Correct AnswerverifiedShow Answer

Empirical disciplines:

Correct AnswerverifiedShow Answer

Each of the following would impact the production decision EXCEPT the:

Correct AnswerverifiedShow Answer

Which of the following is NOT a microeconomic topic?

Correct AnswerverifiedShow Answer

When comparing a monopoly outcome to a perfectly competitive outcome, the monopolist produces _____ and charges a _____ price.

Correct AnswerverifiedShow Answer

Each of the following will impact the consumption decision EXCEPT the:

Correct AnswerverifiedShow Answer

Examples of using theories and models include:

Correct AnswerverifiedShow Answer

Which of the following is a microeconomic policy?

Correct AnswerverifiedShow Answer

A major factor in the evolution of empirical analysis in microeconomics is the:

Correct AnswerverifiedShow Answer

Which of the following is considered a microeconomic topic?

Correct AnswerverifiedShow Answer

Oligopolies exist when:

Correct AnswerverifiedShow Answer

To learn the intricacies of theories and models, economists use:

Correct AnswerverifiedShow Answer

Microeconomic tools:

Correct AnswerverifiedShow Answer

On the demand side of the market, you would examine:

Correct AnswerverifiedShow Answer

On the supply side of the market, you would examine:

Correct AnswerverifiedA

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When comparing a monopoly outcome to a perfectly competitive outcome, the monopolist produces _ and charges a _ price.

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A