Microeconomics Quize

1.Lecture1Quiz-AnIntroductiontoMicroeconomicsQuestion1Microeconomicsconceptscanhelpyoumakebetterpersonaldecisions.Forexample,whichofthesetoolsmightbeusefulwhendecidingwhethertobuyanenergy-efficientrefrigeratororonewithoutenergyfeatures?NetpresentvalueFiscalPolicyDon’tKnowPriceelasticityQuestion2Whenhissoftwarecompanystartedtolosemoney,theCEO’ssolutionwastoraisepricesinthehopesofboostingrevenuesandprofits.However,revenuesfellandhisstrategybankruptedthecompany.Whatmicroeconomicconceptdidhefailtoapply?NetpresentvaluePriceelasticityDon’tKnowFiscalPolicyQuestion3Microeconomicsfocuseson:1.Thebehaviorofindividualmarketsandthesmallerindividualunitsthatmakeupthebroadereconomy--businesses,consumers,investors,andworkers.2.Problemsinthebroadereconomylikeinflationandunemploymentandtherateofeconomicgrowth.Both1and2Don’tknowQuestion4Whoistheintellectualforefatherofmicroeconomics?Don’tKnowJohnMaynardKeynesAdamSmithMiltonFriedmanQuestion5The“invisiblehand”analogyfromtheclassicbookTheWealthofNationsarguesthat:Theself-interestedactionsofindividualsleadstoproblemslikemonopolyandpricegougingsomarketsneedtoberegulated.Theself-interestedactionsofindividualsguidemarketoutcomestoyieldgreateconomicbenefitsforthebroadersociety.NoneoftheanswerchoicesDon’tknowQuestion6HowmanysectorsofaneconomylikethatoftheUnitedStates,Germany,orJapanfulfillAdamSmith’svisionofaperfectlycompetitivemarketplacedeliveringgoodsandservicesatlowestpriceandhighestquality.MostDon'tknowVeryfewAllQuestion7TheU.S.economymaybecharacterizedas:MixedPrimarilymonopoliesPerfectlycompetitiveDon’tknowQuestion8Oligopoliesareindustrieswhichtypicallyhave:AsinglefirmNumerousfirmsDon’tknowAsmallnumberoflargefirms.Question9Oligopoliesaretypicallycharacterizedby:RegulatedpricesCollusivepracticessuchaspricefixingDon’tknowFiercepricecompetitionQuestion10ACommandEconomy:Makesalltheimportantdecisionsaboutproductionanddistribution.Ownsmostofthemeansofproduction(landandcapital).Istheemployerofmostworkersandtellsthemhowtodotheirjobs.AlloftheaboveDon'tknowQuestion11Whatarethemostimportantquestionstoaskinmicroeconomicsfromasocietalpointofview?WhatshallbeproducedHowshallitbeproduced?Forwhomshallitbeproducedfor?AlloftheaboveDon’tknowQuestion12WhenthegovernmentraisestaxestoredistributeincomefromtherichtothepoorthroughmechanismslikefoodstampsorMedicare:ThereisnoeffectoneconomicefficiencyEconomicefficiencyimprovesDon’tKnowEconomicefficiencyisreducedQuestion13TheProductionPossibilitiesFrontierorPPF:CalculatestheoptimalratioofcapitaltolaborShowsthemaximumamountsofproductionthatcanbeobtainedgivenitstechnologicalknowledgeandquantityofinputsavailable.IllustrateshoweconomiesgrowfromfrontiersocietiesintoindustrialonesDon’tknowQuestion14IfacountryisoperatingonitsPPF:ResourcesareallocatedfairlyResourcesareallocatedefficientlyBothDon’tknowQuestion15Theopportunitycostofadecisionis:1.Thetimespendinvolvedinmakingthedecision.2.Thevalueofagoodorserviceforgone.Both1and2Don’tknowQuestion16Thetheoryofconsumerandhouseholdbehavior:ExplainsthedownwardslopeofthedemandcurveTheshapeofthedemandcurveAlloftheaboveDon’tknowQuestion17ProductionTheoryhelpsusunderstand:WhythesupplycurveslopesdownwardWhyfirmspriceandproduceproductsthewaytheydo.BothDon’tknowQuestion18Marketfailuresinclude:1.Imperfectcompetition,suchasmonopolies.2.Externalitiesandpublicgoods,suchaspollutionandnationaldefense.Both1and2Don’tknowQuestion19Theconceptofmarketfailureprovidesarationalefor:LibertarianismParliamentaryGovernmentDon’tknowGovernmentinterventionintothefreemarketQuestion20AMonopoly:IncreaseseconomicefficiencyResultsinover-consumptionSetspricestoohighDon’tknowQuestion21Inthepresenceofanegativeexternalitylikepollution:ProductionistoohighrelativetotheefficientoutcomeDon’tknowBothTheprivatecostsofproductionaregreaterthanthesocialcostsofproductionQuestion22Whichoftheseisanon-rivalgoodthatleadstothepublicgoodsproblem?Don’tKnowComputerLighthouseHamburgerQuestion23Whichoftheseisamajorfactorofproduction?LandLaborCapitalAlloftheaboveDon’tknowQuestion24Ananalysisofthecapitalmarketswillhelpusunderstand:Don’tknowHowrentsaresetinrealestatemarketsHowtoevaluatetheprofitabilityofinvestmentsHowbusinessessetwages2.Lecture2Quiz-Supply,DemandandEquilibriumQuestion1TheLawOfDemandstatesthat:1.Thelowertheprice,ceterisparibus,themoreunitsaconsumerwilldemand.2.Thehighertheprice,ceterisparibus,thelesstheconsumerwilldemand.Both1and2Don’tknowQuestion2Whenthepriceofchickenrises,peoplewilltendtoeatmorebeef.Thisisanexampleof:TheIncomeEffectTheSubstitutionEffectBothDon’tknowQuestion3Whydoesquantitydemandedtendtofallaspricerises?TheSubstitutionEffectTheIncomeEffectBoth1and2Don’tknowQuestion4CeterisParibusisaLatinphrasemeaning:FollowingpricesinthemarketHoldingotherthingsconstantMatchingpairsofgoodsDon’tknowQuestion5Theassumptionofceterisparibusisusefulbecauseitallowseconomiststodrawtheirgraphsin:TwodimensionsThreedimensionsBoth1and2Don’tknowQuestion6Commonshiftfactorsusedintheanalysisofdemandinclude:1.Incomeandtastes2.ThepricesofotherproductsBoth1and2Don’tknowQuestion7Suppos