汕头大学商学院微观经济学2009年期末考试MicroeconomicsTest2009.doc

Microeconomics Test 2009姓名： 学号： 小组： 学院：l Multiple Choice (3 points per each. In total 30 points)1. The most fundamental economic problem is a. Security.b. Scarcity.c. Health.d. the deficit.2. To an economist, the term cost meansa. Accounting cost.b. Opportunity cost.c. Monetary cost.d. External cost.3. Microeconomic topics do not usually includea. Inflation.b. technological change.c. wages and production costs.d. the impact of regulating markets.4. Which of the following is an example of a positive statement?a. government should not redistribute income.b. Business firms ought to contribute more to charities.c. Households are the primary source of saving.d. The foreign sector should be more tightly controlled.5. The author of the Wealth of Nation is a. James Madison.b. Adam Smith.c. Thomas Paine.d. David Ricardo.6. Production points on the PPF itself are a. efficient but not attainable.b. efficient and attainable. c. inefficient but not attainable.d. inefficient but attainable.7. The law of demand implies that demand curvesa. slope down.b. slope up.c. Shift up whenever the price rises.d. Shift down whenever the price rises.8. A price below the equilibrium price results in a. A shortage.b. A surplus.c. Excess supply.d. A further price fall.9. a demand curve that has a price elasticity of a. 0 will be vertical.b. 0 will be horizontal.c. 1 will be vertical.d. 1 will be horizontal.10The income elasticity of demand is high for a. food.b. clothing.c. shelter.d. luxuries.l Short Answer Problems (15 points per each. 30 points in total)1. You are the manager of a local restaurant. You notice that when you lower the price of your meals, your total revenue rises. What conclusion can you draw about the demand for your restaurants meals?2. You have been placed in charge of combating illegal drug use in the United States. You must decide between two policies: imprison users of illegal drugs or imprison sellers of drugs. (You can not do both; there isnt space in the jails.) What effect do you expect the policy to have on the price and quantity of illegal drugs? l Case Analysis (40 points)PRICING ASMISSION TO A MUSEUMYou are curator of a major art museum .Your director of finance tells you that the museum is running short of funds and suggests that you consider changing the price of admission to increase total revenue .What do you do ?Do you raise the price of admission ,or do you lower it?1. B b a c b b a a a d2. The demand for your restaurants meals is elastic. Why? When the demand is elastic, a fall in price raises total revenue, which is precisely what you have observed.3. (1) Imposing sanctions on consumers shifts the demand curve for illegal drugs leftward. That lowers the price and creases the quantity of illegal drugs consumed. (2) if sellers are penalized, the supply curve shifts leftward. In this case, the price of illegal drugs rises and the quantity consumed decreases.(3) The answers illustrate that the price of illegal drugs alone cannot be used to judge the success of a policy against drugs. For instance, if the price rises when sanctions are imposed against sellers the policy is effective. However, if the price rises when sanctions are imposed against users, the policy is failing.4. The answer depends on the elasticity of demand. If the demand for visits to the museum is inelastic, then an increase in the price of admission would increase total revenue .But if the demand is elastic ,then an increase in price would decrease .In this case, you should cut the price .The number of visitors would rise by so much that total revenue would increase. To estimate the price elasticity of demand, you would need to turn to your statisticians. They might use historical data to study how museum attendance varied form year to year as the admission price changed .Or they might use data on attendance at the various museums around the country to see how the admission price affects attendance .In studying either of these sets of data, the statisticians would need to take account of other factors that affect attendance-weather, population, size of collect