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Microeconomics 4 e Austan G oolsbee, Steven Levitt, Chad Syverson (Test Bank All Chapters, 100% Original Verified, A+ Grade) 1 / 4
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- Which of these is considered a microeconomic topic?
- unemployment
- inflation
- gross domestic product
- the telecommunications industry
ANSWER: d
- Which of these is a microeconomic policy?
- fiscal policy
- monetary policy
- rent control
- tariffs imposed on all importing nations
ANSWER: c
- Which of these is NOT a microeconomic topic?
- a tax on tobacco
- expansionary monetary policy
- a subsidy for solar power
- a quota on taxicabs
ANSWER: b
4. To learn about the intricacies of theories and models, economists use:
- graphs and mathematics.
- their best guess.
- Wikipedia.
- only the stock market.
ANSWER: a
5. Examples of the use of theories and models include:
- understanding how members of OPEC choose how much oil to produce.
- explaining how the NBA sets salaries for rookies.
- A and B.
- none of the above.
ANSWER: c
6. The term ceteris paribus is an assumption that economists make that implies:
- all else is equal.
- to the victor go the spoils.
- that nothing can be said to be certain except death and taxes.
- that the market is always efficient.
ANSWER: a
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7. On the demand side of the market, you would examine the:
- prices of inputs.
- preferences of consumers.
- cost of production data.
- number of firms.
ANSWER: b
8. On the supply side of the market, you would examine the:
- decisions of firms.
- reference of consumers.
- income of consumers.
- number of consumers.
ANSWER: a
9. Each of these will impact the consumption decision EXCEPT the:
- price of a good.
- income of the consumer.
- price of a substitute good.
- fixed cost of production.
ANSWER: d
10. Each of these will impact production decisions EXCEPT the:
- price of a good.
- income of consumers.
- price of capital.
- technology available for production.
ANSWER: b
11. In a perfectly competitive market, firms:
- determine the number of consumers.
- create barriers to entry.
- take the market price as given.
- have market power.
ANSWER: c
12. Oligopolies exist when:
- there are no barriers to entry.
- firms are price takers.
- the market supply curve reflects the aggregate cost curves of firms.
- multiple firms interact strategically in the same market. 3 / 4
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ANSWER: d
13. If there is a single firm in the market, then the market is considered:
- monopolistically competitive.
- perfectly competitive.
- a monopoly.
- an oligopoly.
ANSWER: c
- When comparing a monopoly outcome to a perfectly competitive outcome, the monopolist produces _____
- more; higher
- less; higher
- less; lower
- more; lower
and charges a _____ price.
ANSWER: b
15. All of these are examples of spillover effects EXCEPT:
- second-hand smoke.
- pollution.
- price gouging.
- road congestion.
ANSWER: c
16. Behavioral economics is the study of the intersection of:
- psychology and economics.
- physics and economics.
- law and economics.
- supply and demand.
ANSWER: a
17. The combined role of risk, uncertainty, and time is prominent in:
- the decision of which movie to watch.
- restaurant decisions.
- grocery store shopping decisions.
- investment decisions.
ANSWER: d
18. Empirical disciplines:
- use data analysis and experiments.
- focus exclusively on theoretical models.
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