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Microeconomics: Theory
and Applications with Calculus Fifth Edition (Global Edition) Jeffrey M. Perloff
Test Bank for
Microeconomics: Theory and
Applications with Calculus Xin Fang 1 / 4
1 Copyright © 2020 Pearson Education, Inc.
Microeconomic: Theory & Apps w/ Calculus, 5e (Perloff)
Chapter 1 Introduction
1.1 Microeconomics: The Allocation of Scarce Resources
1) Microeconomics studies the allocation of
- decision makers.
- scarce resources.
- models.
D)unlimited resources.
Answer: B
Topic: Microeconomics: The Allocation of Scarce Resources
Skill: Analytical thinking
Status: Old
2) Microeconomics is often called
- price theory.
- decision science.
- scarcity.
- resource theory.
Answer: A
Topic: Microeconomics: The Allocation of Scarce Resources
Skill: Analytical thinking
Status: Old
3) Society faces trade-offs because of
- government regulations.
- greedy corporations.
- faceless bureaucrats.
- scarcity.
Answer: D
Topic: Microeconomics: The Allocation of Scarce Resources
Skill: Analytical thinking
Status: Old
4) A market
- always involves the personal exchange of goods for money.
- allows interactions between consumers and firms.
- always takes place at a physical location.
- has no influence on prices.
Answer: B
Topic: Microeconomics: The Allocation of Scarce Resources
Skill: Analytical thinking
Status: Old 2 / 4
2 Copyright © 2020 Pearson Education, Inc.5) What links the decisions of consumers and firms in a market?
- the government
- prices
- coordination officials
- microeconomics
Answer: B
Topic: Microeconomics: The Allocation of Scarce Resources
Skill: Analytical thinking
Status: Old
6) The price of a good is
- always equal to the cost of producing the good.
- never affected by the number of buyers and sellers.
- usually determined in a market.
- None of the above.
Answer: C
Topic: Microeconomics: The Allocation of Scarce Resources
Skill: Analytical thinking
Status: Old
7) The twinkie tax example in Section 1.1 of the textbook is an example of how policies may affect
- which goods are produced.
- how goods are produced.
- who gets these goods.
- All of the above.
Answer: D
Topic: Microeconomics: The Allocation of Scarce Resources
Skill: Application of knowledge
Status: New
8) Who or what is responsible for the allocation of scarce resources into the production of most goods in the U.S.?
- the American government
- the UN
- the Federal Reserve Bank
- markets and prices
Answer: D
Topic: Microeconomics: The Allocation of Scarce Resources
Skill: Application of knowledge
Status: Old
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3 Copyright © 2020 Pearson Education, Inc.9) Which one of the following is not a key trade-off a society faces?
- Who gets the goods and services
- Who produces the goods and services
- Which goods and services to produce
- How to produce
Answer: B
Topic: Trade-Offs
Skill: Analytical thinking
Status: Old
10) An automobile manufacturer is trying to make decisions about using more workers or more equipment. This belongs to the trade-off
- Which goods and services to produce.
- How to produce.
- Who gets the goods and services.
- Who produces the goods and services.
Answer: B
Topic: Trade-Offs
Skill: Application of knowledge
Status: Old
11) Income tax on the wealthy to finance the welfare for the poor causes income redistribution.This is an example for the trade-off
- Which goods and services to produce.
- How to produce.
- Who gets the goods and services.
- Who produces the goods and services.
Answer: C
Topic: Trade-Offs
Skill: Application of knowledge
Status: Old
12) In year 2008, 1334 million lbs of milk was produced and sold in U.S. This is
- the decision of the U.S. department of agriculture.
- quantity determined by the interactions in the market.
- the maximum amount the producers could produce.
- what consumers needed.
Answer: B
Topic: Who Makes the Decisions
Skill: Application of knowledge
Status: Old
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