MICROECONOMICS
Section I
Time−70minutes
60questions
Directions:Each of the questions or incomplete statements below is followed byfive suggested answers or comple-tions.Select the one that is best in each ca and thenfill in the corresponding oval on the answer sheet.
1.A professor hires two aides,assigning them the
tasks of reading student papers and of typing lec-ture notes on a computer.One of the aides,Ben, can read1page of a student paper per minute or type50words of1lecture notes per minute,and the other aide,Ann,can read3pages of a student paper per minute or type60words of lecture notes per minute.
Which of the following statements is true?
A.Ann has a comparative advantage in
reading student papers,and Ben has a
comparative advantage in typing lecture
notes.
B.Ann has an absolute advantage in read-
ing student papers,and Ben has an ab-
solute advantage in typing lecture notes.
C.Ben has a comparative advantage in
reading student papers,and Ann has a
comparative advantage in typing lecture
notes.
D.Ben has a comparative advantage in both
reading student papers and typing lec-
ture notes.
E.Ben has an absolute advantage in both
reading student
papers and typing lec-ture notes.2According to the graph above,if a country is cur-rently producing at point X,the opportunity cost of producing another consumer good is
A.20capital goods
< than20capital goods
C.fewer than20capital goods
D.20consumer goods
E.fewer than20consumer goods
3To alleviate afinancial crisis,a university increas student fees.This action will increa university revenues if the price elasticity of demand for uni-versity education is
A.inelastic
B.unit elastic
C.elastic
D.equal to the price elasticity of supply
E.equal to one
4Which of the following will occur if the government impos a price ceiling below the equilibrium price of a good?
A.The quantity sold will exceed the equi-求职表
librium quantity.
B.Firm’s total revenues will increa if de-
mand is price elastic.
C.There will be a shortage in the market
D.Allfirm’s will shut down,since price is
below the equilibrium price.
E.Price will exceed the marginal cost of
producing the last unit sold.
5Which of the following will decrea the demand for beef?
A.An increa in the price of pork,if pork
and beef are substitute goods
B.An increa in the price of potatoes,
if potatoes and beef are complementary
goods
C.A decrea in the cost of transporting
beef to consumers
D.An increa in the income levels of most
consumers,if beef is a normal good
E.Rearch showing beef is better for your
health than chicken
6If the price of afirm’s variable input increas, which of the following will occur?
A.Thefirm will decrea its level of produc-
tion.
B.The price of the god will decrea in the
short run.
C.Thefirm’s marginal costs will decrea
at every level of output.
D.Thefirm’s averagefixed cost will de-
crea.usb启动
E.Morefirms will enter the industry in the
long run.7In a given time period,a person consumes more and more of a good or rvice and,as a result, enjoys each additional unit less and is willing to pay less for each additional unit.This behavior is consistent with the law of
A.diminishing returns
B.diminishing marginal product
C.diminishing marginal utility
D.increasing costs
E.scarce resources
8Which of the following best describes the relation-ship between the average total cost curve and the marginal cost curve in the shown?
A.If the average total cost curve is rising,
the marginal cost curve is above the av-
erage total cost curve.
B.If the average total cost curve is rising,
the marginal cost curve is below the av-
erage total cost curve.
蹼状疤痕C.If the average total cost curve is above
the marginal cost curve,the marginal
cost curve is rising.
D.If the average total cost curve is below
the marginal cost curve,the marginal
cost curve is falling.
E.If the average and marginal cost curve
interct,the I marginal cost curve is at
a minimum
9One characteristic of perfectly competitive markets is that individualfirms
B.are free to enter or exit an industry in
the long run
猪心炒什么菜好吃C.earn positive economics profits in the
long run时间短怎么回事
D.adverti to increa market share
E.face a downward-sloping demand curve
10At the current production level of good X,price is greater than marginal cost.Which of the following actions would lead to greater efficiency?
A.Decreasing the production of good X
B.Increasing the production of good X
C.maintaining the current level of produc-
tion of good X
D.Imposing a tax on the production of good
X
E.Imposing an effective pricefloor on good
X
11Which of the following is true of a monopo1istically competitivefirm in long-run equilibrium?
A.price greater than marginal cost,and
marginal revenue is equal to average to-
tal cost.
B.price is greater than marginal revenue,
and marginal cost is equal to average to-
梦见死去的亲人是什么兆头tal cost.
C.Price is greater than marginal revenue,
and marginal cost is greater than aver-
age tota1cost.
D.Marginal revenue is equal to marginal
cost,and price is equal to average total
cost.
E.Marginal revenue greater than marginal
cost and price is equal to average total
cost.
12Generally,monopolies are considered inefficient be-cau they
A.produce at a point where marginal cost
is less than marginal revenue
B.produce at a point where marginal cost
exceeds price
C.produce more output than does a com-
petitive industry with similar cost condi-
tions
D.lead to an overallocation of resources in
the affected market
E.lead to an underallocation of resources in
the affected market 13A profit-maximizingfirm that lls its output in a perfectly competitive market hires two additional workers,calculating that the contribution to total revenue of the last worker hired just equals the ex-tra cost of hiring that worker.Six months later, thefirm’sfinds that the last workers contribution to total revenue is less than the extra cost of hir-ing that worker.Which of the following mat have occurred in the interim to explain this change?
A.Thefirm laid offsome workers.
B.The market supply for thefirm’s product
decread.
C.The market demand for thefirm’s prod-
uct decread.
D.A technological advance incread the
productivity of thefirm’s workforce.
E.Thefirm negotiated new contracts with
workers,lowering wages,
14Suppo that a large number of unskilled workers enter a nation’s labor market.If the labor market is competitive,the number of unskilled workers hired and the wage rate will most likely change in which of the following ways?
Number of
Unskilled Workers Hired Wage Rate
(a)Increa Increa
(b)Increa Decrea
(c)Increa Not change
(d)Decrea Increa
(e)Decrea Decrea
15A society that wishes to achieve greater income equality is most likely to have which of the follow-ing?
A.A regressive income tax system and high
estate and gift taxes
B.A regressive income tax system and low
estate and gift taxes
C.A progressive income tax system and
high estate and gift taxes
D.A progressive income tax system and low
estate and gift taxes
E.A proportional income tax system and
high estate and gift taxes
16The study of economics is primarily concerned with which of the following?
A.The testing of hypothes under con-
trolled conditions
B.The allocation of scarce resources,given
unlimited wants
C.The fair and equal treatment of all
houholds
D.The provision of conclusive answers to
pub1ic policy issues
E.The development of the dynamics of
group behavior
17Mr.Carpenter devotes his working time to produc-ing tables and chairs.An increa in the demand for chairs will resu1t in
A.an increa in the amount of time he de-
votes to producing tables
B.an increa in his opportunity cost of
producing tables
C.a decrea in the price of lumber
D.a decrea in the price of chairs
E.a decrea in his total revenue
18Assume that both the supply of and the demand for a good are relatively price elastic.The impo-sition of a per-unit exci tax on the sale of the good would cau the equilibrium and quantity to change in which of the following ways?Price Quantity
A.Increa Increa
B.Increa NO change
C.Increa Decrea
D.Decrea No change
E.Decrea Decrea
19Assume that consumers consider potatoes to be an inferior good,but consider rice to be a normal good.An increa in consumers’incomes will most likely affect the equilibrium price and quantity of potatoes and rice in which of the following ways?
Potato Rice
Price Quantity Price Quantity
(a)Decrea Decrea Increa Increa
(b)Decrea Increa Increa Decrea
(c)Decrea Decrea Decrea Decrea
(d)Increa Increa Decrea Decrea
(e)Increa Decrea Increa Decrea 20Assume that a consumer spends all her income on the purcha of two goods.If the consumer’s in-come doubles and the prices of the two goods also double,the quantity of the two goods purchad will
A.Also double
< than double
C.increa,but it will be less than double
< change
E.depend on the slope of the demand curve 21Economies of scale exists when
A.the doubling of all inputs doubles the
output produced
B.short-run average total cost decreas as
output increas
C.short-run average total cost remains con-
stant as output increas
D.long-run average total cost increas as
output increas
E.long-run average total cost decreas as
output increas
22Locotek produces toy trains and pays each worker $350per week.Five workers can produce40trai
ns per week and six workers can produce45trains per week.The marginal product per week of the sixth worker is
A.$70
B.$350
C.5trains
D.7.5trains
E.42.5trains
23If the only twofirms in an industry successfully collude to maximize their joint profit,the price for the product will be
A.equal to the marginal cost of production
B.equal to the average total cost of produc-
tion
C.above the marginal cost of production
D.above the monopoly price
E.below the average variable cost of pro-
duction
24If there are manyfirms in an industry and each firms’s product indistinguishable from the prod-ucts of all otherfirms,the individualfirms’s de-mand curve will be
A.upward sloping and different for each
firm
B.downward sloping and different for each
firm
C.downward sloping and identical for every
firm
D.horizontal and different for eachfirm
E.horizontal identical for everyfirm
25Monopoly is different from a perfectly competitive firm in that a monopoly
A.does not have a U-shaped average total
cost curve
B.has an averagefixed cost curve that is
perfectly horizontal
C.has a marginal revenue curve that lies
below its demand curve
D.a1ways earns economic profits
E.operates in the inelastic gment of its
demand curve
26Price discrimination occurs when
A.the supp1y of the product is elastic
B.a product’s average cost is greater than
its average revenue
C.a product’s average cost is less than its
average revenue
D.differences in a product’s price reflection
differences in marginal costs
E.differences in a product’s price do not re-
flect differences in costs of production 27If a5percent wage increa in a particular labor market results in a10percent decrea in employ-ment,the demand for labor is
A.perfectly elastic
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C.unit elastic
E.perfectly inelastic
Marginal Marginal Number Hourly Factor Revenue
of Workers Wages Cost Product
10$5.00中国睡衣十大名牌
11 5.10$6.10/hr$8.70/hr
12 5.20$6.30/hr$7.60/hr
13 5.30$6.50/hr$6.50/hr
14 5.40$6.70/hr$5.40/hr
15 5.50$6.90/hr$4.30/hr
28According to the information in the table above, the twelfth worker wou1d increa the hour1y profit by
A.$0.20
B.$1.10
C.$1.30
D.$2.40
E.$5.20
29Characteristics of a pure pub1ic good include which of the following?
A.[I.]Nonpaying consumers cannot be ex-
cluded from consuming the good.
B.[II.]Consumption by any one person
does not reduce the availability of the
good to others.
C.[III.]The amount consumed depends on
the price paid.
A.I only
B.II only
C.III only
D.I and II only
E.II and III only
