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versionbexam1 - Introduction to Microeconomics Fall 2010...

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Introduction to Microeconomics Fall 2010 Version B Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. For a competitive market, which of the following statements is correct? a. A single buyer can influence the price of the product, but only when purchasing from several sellers in a short period of time. b. A seller can always increase her profit by raising the price of her product. c. A seller often charges less than the going price to increase sales and profit. d. If a seller charges more than the going price, buyers will go elsewhere to make their purchases. Figure 21-4 ____ 2. Refer to Figure 21-4 . Which of the following statements is true? a. If a consumer moves from point C to point A, her loss of Ho-Ho's cannot be compensated for by an increase in Twinkies. b. Since more is preferred to less, point C may be preferred to point E in some circumstances for this consumer. c. Even though point E has more of both goods than point B, we could draw a different set of indifference curves in which point B is preferred to point E. d. Point E is preferred to all other points identified in the figure. ____ 3. A movement along the supply curve might be caused by a change in a. the price of the good or service that is being supplied. b. technology. c. expectations about future prices. d. input prices. ____ 4. When constructing a production possibilities frontier, which of the following assumptions is not made? a. The quantities of the factors of production that are available are increasing over the
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relevant time period. b. The technology available to firms is given. c. Firms produce goods using factors of production. d. The economy produces only two goods or two types of goods. ____ 5. Suppose the equilibrium price of a physical examination ("physical") by a doctor is $200, and the government imposes a price ceiling of $150 per physical. As a result of the price ceiling, a. the supply curve for physicals shifts to the left. b. the number of physicals performed will increase. c. the demand curve for physicals shifts to the right. d. the quantity demanded of physicals increases and the quantity supplied of physicals decreases. ____ 6. Which of the following events could shift the demand curve for gasoline to the left? a. The price of gasoline rises. b. Income of gasoline buyers falls, and gasoline is an inferior good. c. Public service announcements are run on television, encouraging people to walk or ride bicycles instead of driving cars. d. Income of gasoline buyers rises, and gasoline is a normal good. ____ 7. Suppose the American Medical Association announces that men who shave their heads are less likely to die of heart failure. We could expect the current demand for a. razors to increase. b.
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versionbexam1 - Introduction to Microeconomics Fall 2010...

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