Micro Quiz 1
QUIZ 01 - SOLUTION
ECO303 – FALL 2014
INTERMEDIATE MICROECONOMIC THEORY
Instructor: Ramiro Malaga
Due date: Wednesday 10th September at 11:00 p.m.
Please answer it on Blackboard. If you face any difficulty to submit your problem set, please send the answers by email to: ramiro.malagaortega@stonybrook.edu before deadline. CHAPTER 1: Thinking like an Economist.
Problem 1
Microeconomics is primarily the study of how:
A.
B.
C.
D.
The stock market works.
People (agents) choose among alternatives.
Businesses can make money.
The economy functions as a whole.
Answer: B
Problem 2
You are considering renting a car for the weekend. It costs $200 for the car plus $0.20 per mile (including gas). If you decide to go on a 300 mile voyage what is the total cost of the rental?
A.
B.
C.
D.
$200
$60
$260
$0
Answer: C
Problem 3
You are considering renting a car for the weekend. It costs $200 for the car plus $0.20 per mile (including gas). Suppose you have already rented the car for the week and then add the 300 mile addition to your trip. Now what is the cost of the journey?
Hint: Beware of sunken cost!
A.
B.
C.
D.
$100
$60
$260
$0
Answer: B
Problem 4
You are considering renting a car for the weekend. It costs $200 for the car plus $0.20 per mile (including gas). If you decide to take a detour that adds 50 miles above the 300 miles, what is the cost of the detour?
1
Hint: Beware of sunken cost!
A.
B.
C.
D.
$10
$70
$270
$200
Answer: A
Problem 5
We say economists are doing positive economics when they
A. Focus on policies and rhetoric that encourage people to be optimistic about the future.
B. Look for regularities and principles in economic life that can help show how the economy works.
C. Claim that there is no value free social science so articulating one's values is important.
D. Try to improve the welfare of all citizens.
Answer: B
Problem 6
The marginal benefit of a typical activity
ECO303 – FALL 2014
INTERMEDIATE MICROECONOMIC THEORY
Instructor: Ramiro Malaga
Due date: Wednesday 10th September at 11:00 p.m.
Please answer it on Blackboard. If you face any difficulty to submit your problem set, please send the answers by email to: ramiro.malagaortega@stonybrook.edu before deadline. CHAPTER 1: Thinking like an Economist.
Problem 1
Microeconomics is primarily the study of how:
A.
B.
C.
D.
The stock market works.
People (agents) choose among alternatives.
Businesses can make money.
The economy functions as a whole.
Answer: B
Problem 2
You are considering renting a car for the weekend. It costs $200 for the car plus $0.20 per mile (including gas). If you decide to go on a 300 mile voyage what is the total cost of the rental?
A.
B.
C.
D.
$200
$60
$260
$0
Answer: C
Problem 3
You are considering renting a car for the weekend. It costs $200 for the car plus $0.20 per mile (including gas). Suppose you have already rented the car for the week and then add the 300 mile addition to your trip. Now what is the cost of the journey?
Hint: Beware of sunken cost!
A.
B.
C.
D.
$100
$60
$260
$0
Answer: B
Problem 4
You are considering renting a car for the weekend. It costs $200 for the car plus $0.20 per mile (including gas). If you decide to take a detour that adds 50 miles above the 300 miles, what is the cost of the detour?
1
Hint: Beware of sunken cost!
A.
B.
C.
D.
$10
$70
$270
$200
Answer: A
Problem 5
We say economists are doing positive economics when they
A. Focus on policies and rhetoric that encourage people to be optimistic about the future.
B. Look for regularities and principles in economic life that can help show how the economy works.
C. Claim that there is no value free social science so articulating one's values is important.
D. Try to improve the welfare of all citizens.
Answer: B
Problem 6
The marginal benefit of a typical activity