Question 1

Microeconomics can be used by governments to predict the impacts of a policy and suggest solutions to problems.

Accepted Answer

A) True 
 B)False

Question 2

Economic models are only useful in analyzing government policy.

Accepted Answer

A)  True, individuals are irrational and therefore economic models are useless. 
B)  False, economic models can be used to predict individual and firm behavior. 
C)  True, economists only model those questions for which they are hired. 
D)  False, economic models are not even useful in analyzing government policy. 
A)  True, individuals are irrational and therefore economic models are useless. 
B)  False, economic models can be used to predict individual and firm behavior. 
C)  True, economists only model those questions for which they are hired. 
D)  False, economic models are not even useful in analyzing government policy.

Question 3

The price of a good is

Accepted Answer

A)  always equal to the cost of producing the good. 
B)  never affected by the number of buyers and sellers. 
C)  usually determined in a market. 
D)  None of the above. 
A)  always equal to the cost of producing the good. 
B)  never affected by the number of buyers and sellers. 
C)  usually determined in a market. 
D)  None of the above.

Question 4

In the Soviet Union,which boasted about giving every worker a job,some workers were given the task of digging holes and filling them again.What function of microeconomic analysis did this policy address?

Accepted Answer

A)  What goods/services to produce 
B)  How to produce the goods and services 
C)  Who gets the goods and services 
D)  A and B 
A)  What goods/services to produce 
B)  How to produce the goods and services 
C)  Who gets the goods and services 
D)  A and B

Question 5

Individuals use microeconomic models to determine

Accepted Answer

A)  their optimal consumption of beer given an increase in inflation. 
B)  their optimal amount of leisure. 
C)  whether or not to go to college given current student loan interest rates. 
D)  All of the above. 
A)  their optimal consumption of beer given an increase in inflation. 
B)  their optimal amount of leisure. 
C)  whether or not to go to college given current student loan interest rates. 
D)  All of the above.

Question 6

Microeconomics studies the allocation of

Accepted Answer

A)  decision makers. 
B)  scarce resources. 
C)  models. 
D)  unlimited resources. 
A)  decision makers. 
B)  scarce resources. 
C)  models. 
D)  unlimited resources.

Question 7

Which of the following is a fundamental topic addressed by microeconomics?

Accepted Answer

A)  whether to extend unemployment insurance 
B)  determining how many new iPhones the Apple company should produce 
C)  the level of inflation in the country 
D)  the impact of interest rates on savings in the economy 
A)  whether to extend unemployment insurance 
B)  determining how many new iPhones the Apple company should produce 
C)  the level of inflation in the country 
D)  the impact of interest rates on savings in the economy

Question 8

Governments do not respond to prices.

Accepted Answer

A) True 
 B)False

Question 9

Microeconomics is often called

Accepted Answer

A)  price theory. 
B)  decision science. 
C)  scarcity. 
D)  resource theory. 
A)  price theory. 
B)  decision science. 
C)  scarcity. 
D)  resource theory.

Question 10

Firms do NOT use microeconomic models to

Accepted Answer

A)  determine what inputs will be used for production. 
B)  determine whether they should advertise in the newspaper or on the radio. 
C)  strategically raise profits over competitors. 
D)  None of the above. 
A)  determine what inputs will be used for production. 
B)  determine whether they should advertise in the newspaper or on the radio. 
C)  strategically raise profits over competitors. 
D)  None of the above.

Microeconomics can be used by governments to predict the impacts of a policy and suggest solutions to problems.

Economic models are only useful in analyzing government policy.

The price of a good is

In the Soviet Union,which boasted about giving every worker a job,some workers were given the task of digging holes and filling them again.What function of microeconomic analysis did this policy address?

Individuals use microeconomic models to determine

Microeconomics studies the allocation of

Which of the following is a fundamental topic addressed by microeconomics?

Governments do not respond to prices.

Microeconomics is often called

Firms do NOT use microeconomic models to

Supply and Demand

Applying the Supply and Demand Model

Consumer Choice

Applying Consumer Theory

Firms and Production

Costs

Competitive Firms and Markets

Applying the Competitive Model

General Equilibrium and Economic Welfare

Monopoly

Pricing and Advertising

Oligopoly and Monopolistic Competition

Game Theory

Factor Markets

Interest Rates, Investments, and Capital Markets

Uncertainty

Externalities, Open-Access, and Public Goods

Asymmetric Information

Contracts and Moral Hazards

Filters

Exam 1: Introduction

Microeconomics can be used by governments to predict the impacts of a policy and suggest solutions to problems.

Economic models are only useful in analyzing government policy.

The price of a good is

In the Soviet Union,which boasted about giving every worker a job,some workers were given the task of digging holes and filling them again.What function of microeconomic analysis did this policy address?

Individuals use microeconomic models to determine

Microeconomics studies the allocation of

Which of the following is a fundamental topic addressed by microeconomics?

Governments do not respond to prices.

Microeconomics is often called

Firms do NOT use microeconomic models to

Supply and Demand

Applying the Supply and Demand Model

Consumer Choice

Applying Consumer Theory

Firms and Production

Costs

Competitive Firms and Markets

Applying the Competitive Model

General Equilibrium and Economic Welfare

Monopoly

Pricing and Advertising

Oligopoly and Monopolistic Competition

Game Theory

Factor Markets

Interest Rates, Investments, and Capital Markets

Uncertainty

Externalities, Open-Access, and Public Goods

Asymmetric Information

Contracts and Moral Hazards

Filters