曼昆微观经济学英文版课后练习题第一章.doc

Chapter 1/Ten Principles of Economicsv33
Chapter 1
Ten Principles of Economics
Multiple Choice
1. The word that comes from the Greek word for "one who manages a household" is
a. market.
b. consumer.
c. producer.
d. economy.
ANS: D DIF: 1 REF: 1-0
TOP: Economy MSC: Definitional
2. The word “economy” comes from the Greek word oikonomos, which means
a. “environment.”
b. “production.”
c. “one who manages a household.”
d. “one who makes decisions.”
ANS: C DIF: 1 REF: 1-0
TOP: Economy MSC: Definitional
3. Resources are
a. scarce for households but plentiful for economies.
b. plentiful for households but scarce for economies.
c. scarce for households and scarce for economies.
d. plentiful for households and plentiful for economies.
ANS: C DIF: 1 REF: 1-0
TOP: Resources, Scarcity MSC: Interpretive
4. Economics deals primarily with the concept of
a. scarcity.
b. poverty.
c. change.
d. power.
ANS: A DIF: 1 REF: 1-0
TOP: Scarcity MSC: Definitional
5. Which of the following questions is not answered by the decisions that every society must make?
a. What determines consumer preferences?
b. What goods will be produced?
c. Who will produce the goods?
d. Who will consume the goods?
ANS: A DIF: 2 REF: 1-0
TOP: Economies MSC: Interpretive
6. The overriding reason as to why households and societies face many decisions is that
a. resources are scarce.
b. goods and services are not scarce.
c. incomes fluctuate with business cycles.
d. people, by nature, tend to disagree.
ANS: A DIF: 2 REF: 1-0
TOP: Scarcity MSC: Interpretive
7. The phenomenon of scarcity stems from the fact that
a. most economies’ production methods are not very good.
b. in most economies, wealthy people consume disproportionate quantities of goods and services.
c. governments restricts production of too many goods and services.
d. resources are limited.
ANS: D DIF: 2 REF: 1-0
TOP: Scarcity MSC: Interpretive
8. Approximately what percentage of the world's economies experience scarcity?
a. 25%
b. 50%
c. 75%
d. 100%
ANS: D DIF: 1 REF: 1-0
TOP: Scarcity MSC: Interpretive
9. When a society cannot produce all the goods and services people wish to have, it is said that the economy is experiencing
a. scarcity.
b. shortages.
c. inefficiencies.
d. inequities.
ANS: A DIF: 2 REF: 1-0
TOP: Scarcity MSC: Interpretive
10. For society, a good is not scarce if
a. at least one individual in society can obtain all he or she wants of the good.
b. firms are producing the good at full capacity.
c. all members of society can have all they want of the good.
d. those who have enough income can buy all they want of the good.
ANS: C DIF: 1 REF: 1-0
TOP: Scarcity MSC: Interpretive
11. Which of the following products would be considered scarce?
a. golf clubs
b. Picasso paintings
c. apples
d. All of the above are correct.
ANS: D DIF: 2 REF: 1-0
TOP: Scarcity MSC: Interpretive
12. Economics is the study of
a. production methods.
b. how society manages its scarce resources.
c. how households decide who performs which tasks.
d. the interaction of business and government.
ANS: B DIF: 1 REF: 1-0
TOP: Economies, Scarcity MSC: Definitional
13. Economics is the study of
a. how society manages its scarce resources.
b. the government's role in society.
c. how a market system functions.
d. how to increase production.
ANS: A DIF: 1 REF: 1-0
TOP: Economies, Scarcity MSC: Definitional
14. In most societies, resources are allocated by
a. a single central planner.
b. a small number of central planners.
c. those firms that use resources to provide goods and services.
d. the combined actions of millions of households and firms.
ANS: D DIF: 1 REF: 1-0
TOP: Resource allocation MSC: Interpretive
15. The adage, "There is no such thing as a free lunch," is used to illustrate the principle that
a. goods are scarce.
b. people face tradeoffs.
c. income must be earned.
d. households face many decisions.
ANS: B DIF: 2 REF: 1-1
TOP: Tradeoffs MSC: Interpretive
16. The adage, "There is no such thing as a free lunch," means
a. even people on welfare have to pay for food.
b. the cost of living is always increasing.
c. to get something we like, we usually have to give up another thing we like.
d. all costs are included in the price of a product.
ANS: C DIF: 1 REF: 1-1
TOP: Tradeoffs MSC: Definitional
17. Economists use the phrase "There is no such thing as a free lunch," to illustrate the principle that
a. inflation almost always results in higher prices over time.
b. nothing is free in a market economy.
c. making decisions requires trading off one goal against another.
d. if something looks too good to be true, it probably is not worth pursuing.
ANS: C DIF: 2 REF: 1-1
TOP: Tradeoffs MSC: Interpretive
18. Which of the following statements best represents the principle represented by the adage, "There is no such thing as a free lunch"?
a. Melissa can attend the concert only if she takes her sister with her.
b. Greg is hungry and homeless.
c. Brian must repair the tire on his bike before he can ride it to class.
d. Kendra must decide between going to Colorado or Cancun for spring break.
ANS: D DIF: 3 REF: 1-1
TOP: Tradeoffs MSC: Applicative
19. The principle that "people face tradeoffs" applies to
a. individuals.
b. families.
c. societies.
d. All of the above are correct.
ANS: D DIF: 1 REF: 1-1
TOP: Tradeoffs MSC: Applicative
20. A typical society strives to get the most it can from its scarce resources. At the same time, the society attempts to distribute the benefits of those resources to the members of the society in a fair manner. In other words, the society faces a tradeoff between
a. guns and butter.
b. efficiency and equity.
c. inflation and unemployment.
d. work and leisure.
ANS: B DIF: 1 REF: 1-1
TOP: Efficiency, Equity MSC: Interpretive
21. Guns and butter are used to represent the classic societal tradeoff between spending on
a. durable and nondurable goods.
b. imports and exports.
c. national defense and consumer goods.
d. law enforcement and agriculture.
ANS: C DIF: 1 REF: 1-1
TOP: Tradeoffs MSC: Interpretive
22. When society requires that firms reduce pollution, there is
a. a tradeoff because of reduced incomes to the firms' owners and workers.
b. a tradeoff only if some firms are forced to close.
c. no tradeoff, since the cost of reducing pollution falls only on the firms affected by the requirements.
d. no tradeoff, since everyone benefits from reduced pollution.
ANS: A DIF: 3 REF: 1-1
TOP: Tradeoffs MSC: Applicative
23. A tradeoff exists between a clean environment and a higher level of income in that
a. studies show that individuals with higher levels of income actually pollute less than low-income individuals.
b. efforts to reduce pollution typically are not completely successful.
c. laws that reduce pollution raise costs of production and reduce incomes.
d. by employing individuals to clean up pollution, employment and income both rise.
ANS: C DIF: 2 REF: 1-1
TOP: Tradeoffs MSC: Applicative
24. Which of the following phrases best captures the notion of efficiency?
a. absolute fairness
b. equal distribution
c. minimum waste
d. equitable outcome
ANS: C DIF: 1 REF: 1-1
TOP: Efficiency MSC: Interpretive
25. Which of the following is true?
a. Efficiency refers to the size of the economic pie; equity refers to how the pie is divided.
b. Government policies usually improve upon both equity and efficiency.
c. As long as the economic pie continually gets larger, no one will have to go hungry.
d. Efficiency and equity can both be achieved if the economic pie is cut into equal pieces.
ANS: A DIF: 2 REF: 1-1
TOP: Efficiency, Equity MSC: Interpretive
26. Efficiency means that
a. society is conserving resources in order to save them for the future.
b. society's goods and services are distributed equally among society's members.
c. society's goods and services are distributed fairly, though not necessarily equally, among society's members.
d. society is getting the maximum benefits from its scarce resources.
ANS: D DIF: 1 REF: 1-1
TOP: Efficiency MSC: Definitional
27. Economists use the word equity to describe a situation in which
a. each member of society has the same income.
b. each member of society has access to abundant quantities of goods and services, regardless of his or her income.
c. society is getting the maximum benefits from its scarce resources.
d. the benefits of society's resources are distributed fairly among society's members.
ANS: D DIF: 2 REF: 1-1
TOP: Equity MSC: Interpretive
28. Senator Smith wants to increase taxes on people with high incomes and use the money to help the poor. Senator Jones argues that such a tax will discourage successful people from working and will therefore make society worse off. An economist would say that
a. we should agree with Senator Smith.
b. we should agree with Senator Jones.
c. a good decision requires that we recognize both viewpoints.
d. there are no tradeoffs between equity and efficiency.
ANS: C DIF: 2 REF: 1-1
TOP: Efficiency, Equity MSC: Applicative
29. Which of the following words and phrases best captures the notion of equity?
a. minimum waste
b. maximum benefit
c. sameness
d. fairness
ANS: D DIF: 1 REF: 1-1
TOP: Equity MSC: Definitional
30. When government policies are enacted,
a. equity can usually be enhanced without an efficiency loss, but efficiency can never be enhanced without an equity loss.
b. efficiency can usually be enhanced without an equity loss, but equity can never be enhanced without an efficiency loss.
c. it is always the case that either efficiency and fairness are both enhanced, or efficiency and equity are both diminished.
d. None of the above are correct.
ANS: D DIF: 2 REF: 1-1
TOP: Government, Efficiency, Equity MSC: Applicative
31. A likely effect of government policies that redistribute income and wealth from the wealthy to the poor is that those policies
a. enhance equity.
b. reduce efficiency.
c. reduce the reward for working hard.
d. All of the above are correct.
ANS: D DIF: 2 REF: 1-1
TOP: Government, Efficiency, Equity MSC: Interpretive
32. When the government implements programs such as progressive income tax rates, which of the following is likely to occur?
a. Equity is increased and efficiency is increased.
b. Equity is increased and efficiency is decreased.
c. Equity is decreased and efficiency is increased.
d. Equity is decreased and efficiency is decreased.
ANS: B DIF: 2 REF: 1-1
TOP: Government, Efficiency, Equity MSC: Interpretive
33. As a result of a successful attempt by government to cut the economic pie into more equal slices,
a. it is easier to cut the pie, and therefore the economy can produce a larger pie.
b. the government can more easily allocate the pie to those most in need.
c. the pie gets smaller, and there will be less pie overall.
d. government will spend too much time cutting and it causes the economy to lose the ability to produce enough pie for everyone.
ANS: C DIF: 3 REF: 1-1
TOP: Government, Efficiency, Equity MSC: Analytical
34. When the government attempts to improve equity in an economy the result is often
a. an increase in overall output in the economy.
b. additional government revenue since overall income will increase.
c. a reduction in equity.
d. a reduction in efficiency.
ANS: D DIF: 2 REF: 1-1
TOP: Government, Efficiency, Equity MSC: Interpretive
35. When the government redistributes income from the wealthy to the poor,
a. efficiency is improved, but equity is not.
b. both wealthy people and poor people benefit directly.
c. people work less and produce fewer goods and services.
d. wealthy people consume fewer goods, but poor people consume more goods, resulting in no real change.
ANS: C DIF: 2 REF: 1-1
TOP: Government, Efficiency, Equity MSC: Interpretive
36. In economics, the cost of something is
a. the dollar amount of obtaining it.
b. always measured in units of time given up to get it.
c. what you give up to get it.
d. often impossible to quantify, even in principle.
ANS: C DIF: 1 REF: 1-1
TOP: Opportunity cost MSC: Definitional
37. What you give up to obtain an item is called your
a. opportunity cost.
b. explicit cost.
c. true cost.
d. direct cost.
ANS: A DIF: 1 REF: 1-1
TOP: Opportunity cost MSC: Definitional
38. The opportunity cost of going to college is
a. the total spent on food, clothing, books, transportation, tuition, lodging, and other expenses.
b. the value of the best opportunity a student gives up to attend college.
c. zero for students who are fortunate enough to have all of their college expenses paid by someone else.
d. zero, since a college education will allow a student to earn a larger income after graduation.
ANS: B DIF: 2 REF: 1-1
TOP: Opportunity cost MSC: Interpretive
39. Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is
a. the value to Maurice of the option he would have chosen had Option B not been available.
b. the value to Maurice of Options A, C and D combined.
c. $100.
d. $300.
ANS: A DIF: 2 REF: 1-1
TOP: Opportunity cost MSC: Applicative
40. A furniture maker currently produces 100 tables per week and sells them for a profit. She is considering expanding her operation in order to make more tables. Should she expand?
a. Yes, because making tables is profitable.
b. No, because she may not be able to sell the additional tables.
c. It depends on the marginal cost of producing more tables and the marginal revenue she will earn from selling more tables.
d. It depends on the average cost of producing more tables and the average revenue she will earn from selling more tables.
ANS: C DIF: 2 REF: 1-1
TOP: Marginal changes MSC: Applicative
41. For most students, the largest single cost of a college education is
a. the wages given up to attend school.
b. tuition, fees, and books.
c. room and board.
d. transportation, parking, and entertainment.
ANS: A DIF: 2 REF: 1-1
TOP: Opportunity cost MSC: Interpretive
42. For a college student who wishes to calculate the true costs of going to college, the costs of room and board
a. should be counted in full, regardless of the costs of eating and sleeping elsewhere.
b. should be counted only to the extent that they are more expensive at college than elsewhere.
c. usually exceed the opportunity cost of going to college.
d. plus the cost of tuition, equals the opportunity cost of going to college.
ANS: B DIF: 2 REF: 1-1
TOP: Opportunity cost MSC: Applicative
43. For which of the following individuals would the opportunity cost of going to college be highest?
a. a promising young mat