Microeconomics Chapter 7Consumer Choice and Elasticity
1. If Mr. Smith thinks the last dollar spent on shirts yields less satisfaction than the last dollar spent on
cola, and Smith is a utility-maximizing consumer, he should
a. decrease hi
Macroeconomics Chapter 3 ASupply, Demand, and the Market Process
1. Which of the following would most likely increase the demand for peanut butter?
a. a decrease in the price of jelly, a good that is often used with peanut butter
b. the di
Microeconomics Chapter 11 APrice-Searcher Markets with High Entry
1. When economists talk about a barrier to entry, they are referring to
a. a factor that makes it difficult for potential competitors to enter a market.
b. the oppo
Microeconomics Chapter 8 ACosts and the Supply of Goods
1. Which of the following is most likely to be an implicit cost of production?
a. property taxes on a building owned by the firm
b. transportation costs paid to a trucking supplier
Macroeconomics Chapter 3 BSupply, Demand, and the Market Process
226. Suppose prices for new homes have risen and sales of new homes have also risen. We can conclude
a. the demand for new homes has risen.
b. the law of demand has been
Microeconomics Chapter 9 APrice Takers and the Competitive Process
1. Which of the following is a primary difference between price searchers and price takers?
a. Price searchers maximize profits, but price takers do not.
b. Price searchers
Microeconomics Chapter 12The Supply of and Demand for Productive Resources
1. The demand curve for a human resource will be more elastic the
a. more and better substitutes are available for it.
b. more difficult it is to substitute other r
Macroeconomics Chapter 6The Economics of Collective Decision-Making
1. In 2008, the combined expenditures of federal, state, and local governments in the United States were
a. 14 percent of GDP.
b. 24 percent of GDP.
c. 35 pe
Microeconomics Chapter 10Price-Searcher Markets with Low Entry Barriers
1. In a competitive price-searcher market, the firms will
a. be able to choose their price, and the entry barriers into the market will be low.
b. be able to choose th
There are many ways to look at term limits, first we are going to look at a few arguments for
them. Congress would be more responsible toward their constituents because they would soon
be constituents themselves and would have to live under the laws as th
SPECIAL TOPIC 3
1. A friend just inherited $50,000. She informs you of her investment plans and asks for
your advice. I want to put it into the stock market and use it for my retirement in 30
Principles of Microeconomics
Professor Jim Cobbe
Please move in toward the middle of
Before we do anything else, set up PRS.
Please turn on your clicker. If it is already
on, restart it.
1. What is the underlying message of the following lyrics from Keynes?
[Keynes] Public works, digging ditches, war has the same effect. Even a broken window helps
the glass man have some wealth. The multiplier driving higher the economys health
2. Use the
Macroeconomics Chapter 4 ASupply and Demand: Applications and Extensions
1. Other things constant, a decrease in the demand for computers will
a. increase the price of computers.
b. increase the quantity supplied of computers.
Microeconomics Chapter 13Earnings, Productivity, and the Job Market
1. If all persons had identical preferences and productivity factors (ability, skill level, education, experience, etc.), the highest paying jobs would be the most
Microeconomics Chapter 2 BSome Tools of the Economist
NARRBEGIN: Figure 02-11
Use the figure to answer the following question.
225. In Figure 2-11, which shows the production possibilities curve,
a. A is efficient.
CHAPTER 15 FACTOR MARKETS
Factor Markets and Derived Demand
The four factors of production labor, capital, land and entrepreneurship are bought and sold in
the factor markets. In these markets we reverse the buyer and seller pattern seen in the goods
Macroeconomics Chapter 1The Economic Approach
1. What do economists mean when they state that a good is scarce?
a. There is a shortage or insufficient supply of the good at the existing price.
b. It is impossible to expand the availability
Macroeconomics Chapter 2 ASome Tools of the Economist
1. Which of the following sayings best reflects the concept of opportunity cost?
a. "You can't teach an old dog new tricks."
b. "Time is money."
c. "I have a baker's dozen."
Test 2: The Basics of Supply & Demand
Identify the letter of the choice that best completes the statement or answers the question.
1. Assume the demand schedule for cookies is downward sloping. If the price of cookies fal
CHAPTER 19 CONSUMER CHOICE AND ELASTICITY
131. A 15 percent increase in the price of beef reduces the quantity of beef consumed by 30 percent.
Thus, the demand for beef is _, and total consumer expenditure (or total firm revenue) will
_ as a result of the
Macroeconomics Chapter 5Difficult Cases for the Market and the Role of Government
1. Which of the following is the most fundamental function of government?
a. protection of individuals and their property
b. imposing progressive taxes to fu
Is the Social Security system based on the same principles as private insurance? Why
or why not?
Private insurance and pension programs invest the current payments of
customers in buildings, farms or other real assets. Alternatively, they buy