MICROECONOMICS课程期末大作业

1) Fred and Ann are both given free tickets to see a movie. Both decide to see the same movie. We know that

A) both bear an opportunity cost of seeing the movie because they could have done other things instead of seeing the movie.

B) both bear the same opportunity cost of seeing the movie because they are doing the same thing.

C) it is not possible to calculate the opportunity cost of seeing the movie because the tickets were free.

D) the opportunity cost of seeing the movie is zero because the tickets were free.

2) Your employer has asked you to start working overtime and has offered to pay $18 per hour for every hour you work beyond forty hours a week. The wage rate for each of the first forty hours will continue to be the usual $15 per hour. In terms of dollars, what is the marginal benefit of working each hour of overtime?

A) zero

B) $3.00

C) $15.00

D) $18.00

3) Suppose that the government of New York state promises to decrease taxes to a firm if it decides to stay in New York instead of moving to another state. This policy on the part of the state constitutes ________, to make the ________ of the firm remaining in New York.

A) an incentive; marginal benefit exceed the marginal cost

B) an incentive; marginal cost exceed the marginal benefit

C) a command; marginal benefit exceed the marginal cost

D) a command; marginal cost exceed the marginal benefit

4) In the production possibilities frontier depicted in the figure above, which of the following combinations of hats and bananas is unattainable?

A) 4 million pounds of bananas and 4 million hats

B) 2 million pounds of bananas and 5 million hats

C) 0 pounds of bananas and 6 million hats

D) 1 million pounds of bananas and 3 million hats

5) The table above represents different points along a production possibilities curve. What is the marginal cost of moving from 2 bushels to 3 bushels of beans?

A) 9 bushels of carrots per bushel of beans

B) 12 bushels of carrots per bushel of beans

C) 3 bushels of carrots per bushel of beans

D) 21 bushels of carrots per bushel of beans

6) According to the diagram in the figure above, what is the marginal cost of producing the 3 millionth gallon of gasoline per month?

A) 5 pounds of shrimp per gallon of gasoline

B) 4 pounds of shrimp per gallon of gasoline

C) 3 pounds of shrimp per gallon of gasoline

D) 1 pound of shrimp per gallon of gasoline

7) An  economy produces  only food  and  shelter.  There  are two individuals  in the economy: Bill and Mary. Mary's opportunity cost of producing 1 unit of shelter is 2 units of food. Bill's opportunity cost of producing 1 unit of shelter is 4 units of food.

A) Bill has a comparative advantage over Mary in the production of shelter.

B) Mary has a comparative advantage over Bill in the production of food.

C) Mary has a comparative advantage over Bill in the production of shelter.

D) Bill has an absolute advantage over Mary in the production of shelter.

8) What happens to the demand for Xbox games if the price of an Xbox falls?

A) The demand for Xboxes decreases because the price of a substitute falls.

B) The demand for Xboxes increases because the price of a complement falls.

C) The demand for Xboxes decreases because the price of a complement falls.

D) The demand for Xboxes remains unchanged.

9) A change in which of the following alters buying plans for cars but does NOT shift the demand curve for cars?

A) a 5 percent increase in people's income

B) a 10 percent decrease in the price of car insurance

C) a 20 percent increase in the price of a car

D) an increased preference for walking rather than driving

10) Auto workers negotiate a wage increase. How does this wage hike affect the supply of cars?

A) It decreases the supply.

B) It increase the supply.

C) It has no effect.

D) There is not enough information to tell if the change increases, decreases, or has no effect on the supply of cars.

11) Which of the following results in a movement along the supply curve of spinach but does not shift the supply curve of spinach?

A) disastrous weather that destroys half of this year's spinach crop

B) a rise in the price of spinach

C) an increase in wages for workers in spinach fields

D) great weather that produces a bumper spinach crop this year

12) The price elasticity of demand for oil is estimated at 0.05. This value means a 10 percent increase in the

A) quantity of oil demanded will result from a 0.5 percent increase in the price of oil.

B) quantity of oil demanded will result from a 0.5 percent decrease in the price of oil.

C) price of oil will increase the quantity of oil demanded by 0.5 percent.

D) price of oil will decrease the quantity of oil demanded by 0.5 percent.

13) Four people each have a different willingness to pay for one unit of a good: George will pay $15, Glen will pay $12, Tom will pay $10, and Peter will pay $8. If price is equal to $9 per unit then the quantity demanded in the market will be ________ and the consumer surplus for this unit will be ________.

A) 3; $10

B) 3; $37

C) 3; $36

D) 4; $8

14) The above figure shows Dana's marginal benefit curve for ice cream. If the price of ice cream is $2 per gallon, then the maximum that Dana is willing to pay for the 8th gallon of ice cream is

A) $1.

B) $2.

C) $3.

D) $5.

15) In the figure above, when production is 3 units with a price of $3, the consumer surplus equals

A) a + b.

B) a + b + f+ g.

C) a + b + f+ g+ h + l.

D) a + b + f+ g+ h + l + i + m.

16) The  figure  above illustrates the market  for hot dogs  on Big Foot Island.  The producer surplus is ________.

A) $240 an hour

B) $180 an hour

C) $1.20 a hot dog

D) $60 an hour

17) The above figure shows the marginal social benefit and marginal social cost curves of chocolate in the nation of Kaffenia. What is the marginal social benefit from the 100th pound of chocolate each day?

A) $1.50 per pound

B) $1.00 per pound

C) $0.50 per pound

D) None of the above answers is correct.

18) In the above figure, if five million CDs per month are produced and consumed, that is

A) better than producing and consuming four million CDs because more is always better than less.

B) more than the efficient quantity because the marginal social benefit exceeds the marginal social cost.

C)  more  than  the  efficient  quantity because  the  marginal  social  cost  exceeds  the marginal social benefit.

D) less than the efficient quantity because the opportunity cost exceeds the marginal social benefit.

19) In the table above, if there are 80 umbrellas produced, the deadweight loss from the

A) $10.

B) $20.

C) $30.

D) $40.

20) A rent ceiling below the equilibrium rent will create

A) a more efficient allocation of housing.

B) a larger number of apartments rented.

C) no change in the number of apartments rented.

D) increased search time and black markets.

21) With rent controls set below the equilibrium rent, what mechanism might arise that moves the market closer to the efficient equilibrium?

A) decreased search costs

B) black market activity

C) increased advertising by landlords

D) more favorable leases offered to tenants

22) The figure above shows the housing market in the city of Appleville. A rent ceiling of $650 per month is imposed. With the rent ceiling, the quantity of housing rented in Appleville is

A) 200 units below the efficient level.

B) 100 units above the efficient level.

C) 300 units below the efficient level.

D) efficient.

23) A minimum wage set above the equilibrium wage

I.    increases the supply of labor.

II.  increases the quantity of labor supplied.

III. decreases the demand for labor.

A) I only

B) II only

C) I and II only

D) I, II, and III

24) In the table above, what is the equilibrium wage rate in an unregulated market?

A) $8.00 per hour

B) $9.00 per hour

C) $10.00 per hour

D) $11.00 per hour

25) Suppose the local government places a sales tax on hotel rooms and that the demand for these rooms is elastic while the supply is perfectly inelastic. The tax incidence is such that the tax will be paid by

A) only the consumers.

B) equally by the consumers and the producers.

C) only the producers.

D) the taxpayers.

1) A demand curve is also a willingness-and-ability-to-pay curve.

2) A necessity (such as food and shelter) generally has an inelastic demand.

3) Producer surplus is the marginal cost of producing it minus the price of a good summed over the quantity sold.

4) The incidence of the tax between buyers and sellers depends only on the elasticity of demand.

5) A policy of raising the minimum wage is beneficial to all low-skilled workers.

7) During the mid-2000s, the average price of a used car fell by nearly $500 and the quantity sold nation-wide decreased by several thousands each year. This set of results is a contradiction of the law of demand.

8) If the demand for KFC chicken is price elastic, a fall in the price of KFC chicken will raise the total revenue.

9) The supply curve indicates the minimum quantity that a producer would be willing to supply at alternative prices.

10) For  consumers,  chocolate  chip  cookies  and  doughnuts  are  substitutes.  So,  an increase in the price of chocolate chip cookies will lead to a rightward shift in the demand curve for doughnuts.

1) The table above gives the demand and supply schedules for bread. Assume that the only people who benefit from bread are the people who consume it and the only people who bear the cost of bread are the people who produce it.

a)   What is the maximum price that consumers are willing to pay for the 80th loaf of bread?                                                                                                        ( 1 point)

b)  What is the minimum price that producers are willing to accept to produce 200

loaves of bread?

c)   What is the efficient quantity of bread?

( 1 point)

(2 points)

d)   If the market is efficient, what is the consumer surplus? Draw a figure to show CS.

(3 points)

e)   If one firm owns all the bread outlets and sells  120 loaves per day, what is the deadweight loss? Draw a figure to show DWL.                                      (3 points)

2) The following figure illustrates the current market for workers in Lima, Peru.

a)   Without  any  government  intervention,  what  is  the  equilibrium  wage  rate  and amount of employment?                                                          (2 points)

b)   If the city government imposes a minimum wage of $3 an hour, what is the amount of employment? Does the minimum wage create any unemployment? Why or why not?

(4 points)

c)   If the city government imposes a minimum wage of $6 an hour, what is the amount of employment? Does the minimum wage create any unemployment? Why or why not?

(4 points)

3) The table above shows the demand and supply schedules for the market for coffee in Roastville. A tax on coffee of 75 cents per pound is proposed and the local government asks you to examine the effects of the tax.

a)   Draw the demand and supply curves. If there is no tax on coffee, what is the price and how many pounds are sold?                                 (3 points)

b)   With the tax, what is the price that consumers pay? What is the price that sellers receive? How many pounds of coffee are sold?        (2 points)

c)   What is the government's total tax revenue? How much of the 75¢ per pound tax is paid by buyers?                                                             (2 point)

d)   If there are no external costs and benefits, what is the efficient level of coffee production?                                                                   (1 point)

e)   If the tax is imposed, will the level of production be efficient? Why or why not?

(2 points)

4) A market research team has come up with the demand and supply schedules for pizza in Cheeseboro. These schedules are given in the table above. Use these data to analyze the situation in the market for pizza.

a)   Draw a figure showing the demand curve for pizza and the supply curve of pizza. What are the equilibrium price and quantity?               (3 points)

b)   Suppose the price is $10. Describe the situation in the market and explain how the