Exam (elaborations)
Microeconomics and Behavior 9Th Ed by Robert H Frank - Test Bank
- Module
- Microeconomics
- Institution
- Microeconomics
Test Bank For Microeconomics and Behavior 9Th Ed by Robert H Frank
[Show more]
Content preview
, Chapter 01Thinking Like an Economist
Multiple Choice Questions
1. Microeconomics is primarily the study of how
A. the stock market
works.
B. people choose among
alternatives.
C. businesses can make
money.
D. the economy functions as a
whole.
2. If you are at an all-you-can-eat buffet dinner and you are considering whether to eat
another dessert, you, as a rational consumer should decide to eat the desert
A. if it brings you any pleasure
at all.
B. if it brings you more pleasure than the price you paid for
the meal.
C. if it brings you as much pleasure as the desert costs if it is ordered
a la carte.
D. no matter what because you want to get more for
your money.
1-1
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
,3. Say your girlfriend has received two free tickets to the Sunday movie matinee and
she wants you to go with her. Nevertheless, the movie plays at the same time you
were planning to watch the football game on the TV. As a rational person you should
decide to go to the movie
A. always, since the tickets were
free.
B. only if you would gain some pleasure
from it.
C. only if the pleasure you will gain from it outweighs the pleasure you would gain
from watching the football game.
D. only if it brings you more pleasure than the cost of
the tickets.
4. The reservation price of good X is
A. the market price for a
good.
B. any price above what you would be willing to pay for
the good.
C. the price at which one would be indifferent between good X and simply keeping
the money.
D. the cost of producing
good X.
5. If the benefits of X = $50 and the price of X = $50, then
A. $100 is the reservation
price.
B. you will be indifferent between buying X and keeping
your money.
C. $0 is the reservation
price.
D. you should buy
X.
1-2
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
, 6. Your bank account pays 3% interest per year. You loan a friend $100 for one year at
zero interest. Assuming the loan is paid on time the opportunity cost of the loan is
A. $3
.
B. $10
0.
C. $10
3.
D. $0
.
7. You decide to go skiing this weekend. It costs $50 for transportation, $50 for lodging,
$30 for ski lift tickets and you could have earned $100 as a waiter. What is the total
cost of the ski weekend?
A. $23
0
B. $13
0
C. $10
0
D. $8
0
8. You decide to go skiing this weekend. It costs $50 for transportation, $50 for lodging,
$30 for ski lift tickets. You are unemployed. What is the total cost of the ski
weekend?
A. $23
0
B. $13
0
C. $10
0
D. $8
0
1-3
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamsExpert. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £22.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
58993 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now