经济学原理期中测试题

Grundzge der Volkswirtschaftslehre, Midterm 29.11.04 VERSION 1 mit Antworten PAGE 1 1. A countrys consumption possibilities frontier can be outside its production possibilities frontier a. with trade. b. by producing a greater variety of goods and services. c. by lowering unemployment in the country. d. by allocating resources differently. 2. Suppose consumer income increases. If swimsuits are normal goods, the equilibrium price of swimsuits will _, and producer surplus in the swimsuit industry will _. a. decrease, decrease b. decrease, increase c. increase, decrease d. increase, increase 3. A legal minimum price at which a good can be sold is a a. price ceiling. b. price cut. c. price floor. d. price stabilization. These figures illustrate the production possibilities available to Tom and Nicole with 40 hours of labor. 4. Refer to the graphs given. If Tom and Nicole both specialize in the good in which they have a comparative advantage, total production of books will be _ and total production of videos will be _. a. 40, 4 b. 42, 9 c. 9, 42 d. 4, 40 Grundzge der Volkswirtschaftslehre, Midterm 29.11.04 VERSION 1 PAGE 2 5. In the graph shown, the section of the demand curve labeled C represents a. the elastic section of the demand curve. b. the inelastic section of the demand curve. c. the unit elastic section of the demand curve. d. the perfectly elastic section of the demand curve. 6. The demand for a good tends to be more elastic a. the longer the period of time. b. the greater the availability of close substitutes. c. the narrower the definition of the market. d. All of the above are correct. This table refers to five possible buyers willingness to pay for Good Z. Buyer Willingness to Pay Cassie $8.50 Jamie 7.00 John 5.50 Jeremy 4.00 Sarah 3.50 7. Refer to the table shown. Which of the following is NOT true? a. The demand schedule represented by the table shows the willingness to pay of the marginal buyer. b. At a price of $4.00, total consumer surplus in the market will be $9.00. c. The table is the demand schedule for Good Z. d. When the price is $3.50, each person would have a positive consumer surplus. Grundzge der Volkswirtschaftslehre, Midterm 29.11.04 VERSION 1 PAGE 3 8. According to the graph, the price buyers will pay after the tax is imposed is a. $8.00. b. $6.00. c. $5.00. d. $3.50. 9. According to the graph shown, if the government imposes a binding price ceiling in this market at a price of $5.00, the result would be a. a shortage of 20 units. b. a shortage of 30 units. c. a surplus of 20 units. d. a surplus of 40 units. Grundzge der Volkswirtschaftslehre, Midterm 29.11.04 VERSION 1 PAGE 4 10. In economics, the cost of something is a. the out-of-pocket expense of obtaining it. b. always measured in units of time. c. what you give up to get it. d. always higher than people think. 11. An externality is a. the impact of societys decisions on the well-being of society. b. the impact of societys decisions on the well-being of one person. c. the impact of a persons actions on that persons well-being. d. the impact of one persons actions on the well-being of a bystander. 12. A model a. simplifies reality. b. assumes away irrelevant details. c. can explain how the economy is organized. d. all of the above 13. The initial effect of a tax on the buyers of a good a. is on the supply of that good. b. is on both the supply of the good and the demand for the good. c. is on the demand for that good. d. is on the price of the good. 14. The movement from point A to point B on the graph shows a. a decrease in demand. b. an increase in demand. c. an increase in quantity demanded. d. a decrease in quantity demanded. Grundzge der Volkswirtschaftslehre, Midterm 29.11.04 VERSION 1 PAGE 5 15. The particular price that results in quantity supplied being equal to quantity demanded is the best price because a. it maximizes the profit of buyers. b. it maximizes costs of the seller. c. it minimizes the expenditure of buyers. d. it maximizes the total welfare of buyers and sellers. 16. On the graph, the movement from D to D1 could be caused by a. an increase in price. b. a decrease in the price of a complement. c. an increase in technology. d. a decrease in the price of a substitute. Grundzge der Volkswirtschaftslehre, Midterm 29.11.04 VERSION 1 PAGE 6 17. Refer to the graph shown. What area represents producer surplus when the price is P1? a. A b. B c. C d. D 18. On the production possibilities frontier shown, the opportunity cost to the economy of getting 10 additional roller blades by moving from point A to point B is a. 15 bikes. b. 10 bikes. c. 5 bikes. d. It is impossible to know the opportunity cost without knowing the cost of the resources used to produce the additional roller blades. Grundzge der Volkswirtschaftslehre, Midterm 29.11.04 VERSION 1 PAGE 7 19. Refer to the graph shown. When the price rises from P1 to P2, consumer surplus a. increases by an amount equal to A. b. decreases by an amount equal to B + C. c. increases by an amount equal to B + C. d. decreases by an amount equal to C. These figures illustrate the production possibilities frontiers for Robinson Crusoe and Friday with 12 hours of labor. 20. Refer to the graphs given. For Friday the opportunity cost of 1 pound of coconuts is a. 2/3 pound of fish. b. 3 pounds of fish. c. 1 pound of fish. d. 2 pounds of fish. Grundzge der Volkswirtschaftslehre, Midterm 29.11.04 VERSION 1 PAGE 8 21. In the figure shown, which panel(s) best represent(s) a binding rent control in the long run? a. panel (a) b. panel (b) c. neither panel d. both panels 22. In the circular-flow diagram, a. firms are buyers in the product market. b. spending on goods and services flow from firms to households. c. households are sellers in the resource market. d. firms are sellers in the resource market and the product market. 23. Demand is said to be inelastic a. if buyers respond substantially to changes in the price of the good. b. if the quantity demanded changes only slightly when the price of the good changes. c. if demand shifts only slightly when the price of the good changes. d. if the price of the good responds only slightly to changes in demand. 24. If the minimum wage is above the equilibrium wage, a. the quantity demanded of labor will be less than the quantity supplied. b. anyone who wants a job at the minimum wage can find one. c. the quantity demanded of labor will equal the quantity supplied. d. the quantity demanded of labor will be greater than the quantity supplied. Grundzge der Volkswirtschaftslehre, Midterm 29.11.04 VERSION 1 PAGE 9 These figures illustrate the production possibilities available to Tom and Nicole with 40 hours of labor. 25. Refer to the graphs given. Nicole has a comparative advantage in _ and Tom has a comparative advantage in _. a. videos, books b. both goods, neither good c. books, videos d. neither good, books 26. On the graph shown, the elasticity of demand from point B to point C, using the midpoint method would be a. 0.5 b. 0.75 c. 1.0 d. 1.3 Grundzge der Volkswirtschaftslehre, Midterm 29.11.04 VERSION 1 PAGE 10 27. If a seller is supplying a product that is slightly different than that of many close competitors and is able to charge a different price than competitors, then the seller a. is participating in a monopolistically competitive market. b. is producing a homogeneous product. c. will eventually have to decrease the price. d. is a monopolist. 28. The art of scientific thinking involves a. being able to mathematically express natural forces. b. understanding every scientific field - physics, biology and economics. c. knowing how the major organs of the human body work. d. deciding which assumptions to make. Labor Hours Needed to Make 1 Pound of: Pounds produced in 20 hours: Meat Potatoes Meat Potatoes Farmer 10 5 2 4 Rancher 4 1 5 20 29. Refer to the tables shown. The Rancher has an absolute advantage in _ and the Farmer has a comparative advantage in _. a. meat, potatoes b. meat, neither good c. both goods, meat d. both goods, potatoes 30. When demand is elastic in the current price range, a. a decrease in price would not affect the total revenue. b. an increase in price would decrease total revenue because the decrease in quantity demanded is greater than the increase in price. c. a decrease in price would decrease total revenue because the increase in quantity demanded is smaller than the decrease in price. d. an increase in price would increase total revenue because the decrease in quantity demanded is less than the increase in price. 31. How does total revenue change as one moves down a linear demand curve? a. It first increases, then decreases. b. It is unaffected by a movement along the demand curve. c. It increases. d. It decreases. 32. In a market economy, a. households decide which firms to work for and what to buy with their incomes. b. firms decide whom to hire and what to produce. c. profit and self-interest guide the decisions of firms and households. d. all of the above 33. A competitive market is a. a market where suppliers are under no government restrictions. b. a market with many buyers but few sellers. c. a market in which there are many buyers and many sellers so that each has a negligible impact on price. d. a market where consumers cannot freely interact with sellers. Grundzge der Volkswirtschaftslehre, Midterm 29.11.04 VERSION 1 PAGE 11 34. On a production possibilities frontier, production is efficient if a. the production point is on or inside the frontier. b. the production point is on the frontier. c. the production point is inside the frontier. d. the production point is outside the frontier. 35. You have spent $500 purchasing and repairing an old car which you expect to sell for $800 once the repairs are complete. You discover that you need an additional part, which will cost $400, including labor, in order to complete the repairs. You can sell the car as it is now for $300. What should you do? a. You should never sell something for less than it costs. b. It doesnt matter which action you take; the outcome is the same either way. c. You should complete the repairs and sell the car. d. You should cut your losses and take the $300. 36. When the price of a good or service changes, a. demand shifts in the same direction. b. supply shifts in the opposite direction. c. there is a movement along a st