microecon ch1 4 krugman – intro to micro study practice questions for exam1100 correct with answers rated a download
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MICROECON CH1-4 KRUGMAN – INTRO TO MICRO
STUDY / PRACTICE QUESTIONS FOR EXAM1100 %
CORRECT WITH ANSWERS RATED A+ DOWNLOAD
KRUGMAN – INTRO TO MICRO STUDY / PRACTICE QUESTIONS FOR EXAM1
I.
[CHAPTER 1] Microeconomics deals with:
A) the working of the entire economy or large sectors of it.
B) economic growth.
C) individual decision makers in the economy.
D) gross domestic product.
II.
Marginal analysis studies how individuals decide:
A) whether to live on the margin of society.
B) whether to do a bit more of an activity versus a bit less of it.
C) whether to go to college.
D) how much down payment to make when buying stocks.
III.
An economy is efficient if it is:
A) possible to produce more of all goods and services.
B) possible to produce more of one good without producing less of another.
C) not possible to produce more of one good without producing less of another good.
D) producing a combination of goods.
IV.
Economists believe that resources should be used as efficiently as possible to:
A) achieve society's goals.
B) eliminate scarcity.
, MICROECON CH1-4 KRUGMAN – INTRO TO MICRO
STUDY / PRACTICE QUESTIONS FOR EXAM1100 %
CORRECT WITH ANSWERS RATED A+ DOWNLOAD
C) reduce inequity.
D) maximize profits.
V.
When people in Brazil engage in trade with people in Germany, the citizens of each
nation are made worse off.
A) True
B) False
VI.
If all of the opportunities to make someone better off (without making someone else
worse off) have been exploited, an economy is:
A) equitable.
B) inefficient.
, MICROECON CH1-4 KRUGMAN – INTRO TO MICRO
STUDY / PRACTICE QUESTIONS FOR EXAM1100 %
CORRECT WITH ANSWERS RATED A+ DOWNLOAD
C) marginally optimal.
D) efficient.
VII.
Which of the following is NOT a resource in the production of rice?
A) fertile land
B) labor
C) capital equipment
D) money [Note: money is a means to get the resources of all types and by itself
money cannot produce any good; money cannot be consumed either]
VIII.
Everyone benefits from street lighting, yet the marginal benefit to any one individual
usually falls short of the marginal cost. This is an example of:
A) individual actions whose side effects are not properly taken into account by the
market.
B) one party preventing mutually beneficial trades in an attempt to capture a greater
share of resources for itself.
C) markets do not work efficiently in some cases.
D) regulating self-interest.
IX.
Although for smokers the marginal benefit from smoking may exceed the marginal cost
of smoking, the negative effects of second-hand smoke may increase the marginal costs
of smoking to society to a point where it exceeds that marginal benefit to society. This is
an example of:
A) individual actions whose side effects are not properly taken into account by the
market.
, MICROECON CH1-4 KRUGMAN – INTRO TO MICRO
STUDY / PRACTICE QUESTIONS FOR EXAM1100 %
CORRECT WITH ANSWERS RATED A+ DOWNLOAD
B) one party preventing mutually beneficial trades in an attempt to capture a greater
share of resources for itself.
C) some goods' unsuitability for efficient management by markets.
D) regulating self-interest.
X.
Economists make predictions about individual behavior based on the assumption that
people exploit opportunities to make themselves better off. The fact that different
individuals make different choices when confronted with the same situation implies that
this assumption is often violated.
ANSWER IS FALSE BECAUSE PEOPLE PERCEIVE THE OPPORTUNITIES AND
BENEFITS / COSTS DIFFERENTLY.
A) True
B) False
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