微观经济练习

1.1 Economics is the study of
A) how to invest in the stock market.
B) how society uses limited resources.
C) the role of money in markets.
D) how government officials decide which goods and services are produced

1.2 Because resources are limited
A) only the very wealthy can get everything they want.
B) firms will be forced out of business.
C) the availability of goods will be limited but the availability of services will not.
D) people must make choices.

1.3 Tradeoff is
A) allowing the government and other organizations to choose for us.
B) sacrificing one thing for another.
C) deciding who consumes the products produced in an economy.
D) holding other variables fixed.

1.4 Which of the following is an example of a normative question?
A) How will an increase in the inheritance tax affect tax revenues?
B) What fraction of an income tax cut will be spent on imported goods?
C) Should Florida implement a state income tax to reduce its deficit?
D) How will an increase in unemployment benefits affect the unemployment rate?

1.5 To make things simpler and focus attention on what really matters, economists would
A) use assumptions.
B) ignore all variables.
C) think at the margin.
D) respond to incentives.

1.6 To think at the margin means to consider
A) how nothing remains constant over time.
B) how a small change in one variable affects another variable.
C) how people behave in their own self-interest.
D) how people will decide what to purchase.

1.7 When economists assume that people are rational and respond to incentives, they mean
A) people act with kindness.
B) people are altruistic.
C) people act in their own self-interest.
D) people are selfish.

1.8 Jerome has a "C" average in his philosophy course and a "B" average in his economics course. He decides to study an extra hour for his philosophy exam. This is an example of
A) thinking at the margin.
B) using assumptions to simplify.
C) ceteris paribus.
D) caveat emptor.

1.9 Which of the following is an example of scarcity?
A) If you choose to play video games you will not have as much time for exercise
B) If a city uses an acre of land to build a park there will be less land for houses
C) If I decide to buy a new car I may not have enough money to go away on vacation this year
D) All of the above are examples of scarcity

1.10 Economists use assumptions to:
A) make things simple
B)focus on what really matters
C) simplify decision-making
D) all of the above