曼昆微观经济学英文版课后练习题第一章
曼昆经济学原理英文版答案
曼昆经济学原理英文版答案As the creator of the Baidu Wenku document "Principles of Economics by Mankiw (English Version) Answers", I would like to provide a comprehensive guide to the solutions of the questions in the book. This document aims to help students better understand the principles of economics and improve their problem-solving abilities.Chapter 1: Ten Principles of Economics。
1. People face trade-offs.2. The cost of something is what you give up to get it.3. Rational people think at the margin.4. People respond to incentives.5. Trade can make everyone better off.6. Markets are usually a good way to organize economic activity.7. Governments can sometimes improve economic outcomes.8. The standard of living depends on a country's production.9. Prices rise when the government prints too much money.10. Society faces a short-run trade-off between inflation and unemployment.Chapter 2: Thinking Like an Economist。
曼昆微观经济学课后标准答案
曼昆微观经济学课后答案————————————————————————————————作者：————————————————————————————————日期：21.Consider the market for DVD movies,TV screens,and ticket at movie theaters. A．对每一对物品，确定它们是互补品还是替代品·DVD 和电视·DVD 和电影票·电视和电影票As: complements substitutes substitutesB．假设技术进步降低了制造电视机的成本。
画一个图说明电视机市场会发生什么变动。
As: demand curve不变supply curve向右移。
技术进步降低了制造电视机的成本，使电视机的供给曲线向右移动。
电视机的需求曲线不变。
电视机的均衡价格下降，均衡价格上升。
C．再画两个图说明电视机市场的变动如何影响DVD 市场和电影票市场。
答：DVD：demand curve不变supply curve向右移。
由于电视机和DVD 是互补品，电视机价格的下降使DVD 的需求增加。
需求增加引起DVD 均衡价格上升，均衡数量增加。
Movie tickets：supply curve不变demand curve向左移。
由于电视机和电影票是替代品，电视机价格的下降使电影票需求减少。
需求的减少使电影票的均衡价格下降，均衡数量减少。
2.Over the past 20 years,technological advance reduces the cost of computer chips.How do you think this affected the market for computers?For computer software?For typewriters?As: computer : supply curve向右移price 下降computer software: supply curve向右移price 下降typewriters : demand curve向左移3.Consider total cost and total revenue given in the following table:A．计算每种产量时的利润。
曼昆微观经济学英文答案ch01
1WHAT’S NEW:The discussions of Principle #4, “People respond to incentives,” Principle #7, “Governments cansometimes improve market outcomes,” and Principle #10, “Society faces a s hort-run tradeoff between inflation and unemployment” have been shortened. A definition for the term “business cycle” has been added. A new FYI box on “How to Read This Book” has been added and provides students with tips on studying.LEARNING OBJECTIVES: By the end of this chapter, students should understand:➢ that economics is about the allocation of scarce resources.➢ that individuals face tradeoffs.➢ the meaning of opportunity cost.➢ how to use marginal reasoning when making decisions.➢ how incent ives affect people’s behavior.➢ why trade among people or nations can be good for everyone.➢ why markets are a good, but not perfect, way to allocate resources.➢ what determines some trends in the overall economy.CONTEXT AND PURPOSE:Chapter 1 is the first chapter in a three-chapter section that serves as the introduction to the text. Chapter 1 introduces ten fundamental principles on which the study of economics is based. In a broad sense, the rest of the text is an elaboration on these ten principles. Chapter 2 will develop how economists approach problems while Chapter 3 will explain how individuals and countries gain from trade. The purpose of Chapter 1 is to lay out ten economic principles that will serve as building blocks for the rest of the text. The ten principles can be grouped into three categories: how people makedecisions, how people interact, and how the economy works as a whole. Throughout the text, references1 TEN PRINCIPLES OF ECONOMICS2 Chapter 1/Ten Principles of Economicswill be made repeatedly to these ten principles.KEY POINTS:1. The fundamental lessons about individual decisionmaking are that people face tradeoffs among alternative goals, that the cost of any action is measured in terms of forgone opportunities, thatrational people make decisions by comparing marginal costs and marginal benefits, and that people change their behavior in response to the incentives they face.2. The fundamental lessons about interactions among people are that trade can be mutually beneficial,that markets are usually a good way of coordinating trades among people, and that the government can potentially improve market outcomes if there is some sort of market failure or if the market outcome is inequitable.3. The fundamental lessons about the economy as a whole are that productivity is the ultimate sourceof living standards, that money growth is the ultimate source of inflation, and that society faces a short-run tradeoff between inflation and unemployment.CHAPTER OUTLINE:A. The word “economy” comes from the Greek word meaning “one who mana ges a household.”B. This makes some sense since in the economy we are faced with many decisions (just as a household is).C.Fundamental economic problem: resources are scarce. D. Definition of scarcity : the limited nature of society’s resources.E. Definition of economics: the study of how society manages its scarce resources.Chapter 1/Ten Principles of Economics 3A. Principle #1: People Face Tradeoffs1. “There is no such thing as a free lunch.” Making decisions requires trading of fone goal for another.2. Examples include how a student spends her time, how a family decides to spendits income, how the U.S. government spends tax dollars, how regulations mayprotect the environment at a cost to firm owners.3. A special example of a tradeoff is the tradeoff between efficiency and equity.a. Definition of efficiency: the property of society getting the most itcan from its scarce resources.b. Definition of equity: the property of distributing economicprosperity fairly among the members of society.c. For example, tax dollars paid by wealthy Americans and then distributedto those less fortunate may improve equity but lower the return to hardwork and therefore reduce the level of output produced by our resources.d.This implies that the cost of this increased equity is a reduction in theefficient use of our resources.4. Recognizing that tradeoffs exist does not indicate what decisions should be made.B. Principle #2: The Cost of Something Is What You Give Up to Get It1. Making decisions requires individuals to consider the benefits and costs of someaction.2. What are the costs of going to college?a. We cannot count room and board (at least all of the cost) because theperson would have to pay for food and shelter even if he was not inschool.b. We would want to count the value of the student’s time since he couldbe working for pay instead of attending classes and studying.4 Chapter 1/Ten Principles of Economics3. Definition of opportunity cost: whatever must be given up to obtainsome item.C. Principle #3: Rational People Think at the Margin1. Many decisions in life involve incremental decisions: Should I remain in schoolthis semester? Should I take another course this semester? Should I study anadditional hour for tomorrow’s exam?2. Definition of marginal changes: small incremental adjustments to a planof action.3. Example: You are trying to decide how many years you should stay in school.Comparing the lifestyle of an individual with a Ph.D. to that of an individual whohas dropped out of grade school would be inappropriate. You are likely decidingwhether or not to remain in school for an additional year or two. Thus, you needto compare the additional benefits of another year in school (the marginalbenefit) with the additional cost of staying in school for another year (themarginal cost).4. Another example: Suppose that flying a 200-seat plane across the country coststhe airline $100,000, which means that the average cost of each seat is $500.Suppose that the plane is minutes from departure and a passenger is willing topay $300 for a seat. Should the airline sell the seat for $300? In this case, themarginal cost of an additional passenger is very small.D. Principle #4: People Respond to Incentives1. Because people make decisions by weighing costs and benefits, their decisionsmay change in response to changes in costs and benefits.a. When the price of a good rises, consumers will buy less of it because itscost has risen.b. When the price of a good rises, producers will allocate more resources tothe production of the good because the benefit from producing the goodhas risen.2. Sometimes policymakers fail to understand how policies may alter incentives andbehavior.3. Example: Seat belt laws increase use of seat belts and lower the incentives ofindividuals to drive safely. This leads to an increase in the number of caraccidents. This also leads to an increased risk for pedestrians.If you include any incentive-based criteria on your syllabus, discuss it now. Forexample, if you reward class attendance (or penalize students who do not attendclass), explain to students how this change in the marginal benefit of attending classcan be expected to alter their behavior.Chapter 1/Ten Principles of Economics 5III. How People InteractA. Principle #5: Trade Can Make Everyone Better Off1. Trade is not like a sports competition where one side gains and the other sideloses.2. Consider trade that takes place inside your home. Certainly the family isinvolved in trade with other families on a daily basis. Most families do not buildtheir own homes, make their own clothes, or grow their own food.3. Just like families benefit from trading with one another so do countries.4. This occurs because it allows for specialization in areas that countries (or families)can do best.6 Chapter 1/Ten Principles of EconomicsB. Principle #6: Markets Are Usually a Good Way to Organize Economic Activity1. Many countries that once had centrally planned economies have abandoned thissystem and are trying to develop market economies.2. Definition of market economy: an economy that allocates resourcesthrough the decentralized decisions of many firms and households asthey interact in markets for goods and services.Chapter 1/Ten Principles of Economics 73. Market prices reflect both the value of a product to consumers and the cost ofthe resources used to produce it. Therefore, decisions to buy or produce goodsand services are made based on the cost to society of providing them.4. When a government interferes in a market and restricts price from adjustingdecisions that households and firms make are not based on the properinformation. Thus, these decisions may be inefficient.5. Centrally planned economies have failed because they did not allow the marketto work.6. FYI: Adam Smith and the Invisible Handa. Adam Smith’s 1776 work suggested that although individuals aremotivated by self-interest, an invisible hand guides this self- interest intopromoting society’s economic well-being.b. Smith’s astute perceptions will be discussed more fully in the chap ters tocome.C. Principle #7: Governments Can Sometimes Improve Market Outcomes1. There are two broad reasons for the government to interfere with the economy:the promotion of efficiency and equity.2. Government policy can be most useful when there is market failure.a. Definition of market failure: a situation in which a market left onits own fails to allocate resources efficiently.3. Examples of Market Failurea. Definition of externality: the impact of one person’s actions onthe well-being of a bystander.b. Definition of market power: the ability of a single economic actor(or small group of actors) to have a substantial influence onmarket prices.c. Because a market economy rewards people for their ability to producethings that other people are willing to pay for, there will be an unequaldistribution of economic prosperity.8 Chapter 1/Ten Principles of Economics4. Note that the principle states that the government can improve market outcomes.This is not saying that the government always does improve market outcomes. IV. How the Economy as a Whole WorksA. Principle #8: A Country’s Standard of Living Depends on Its Ability to Produce Goods andServices1. Differences in living standards from one country to another are quite large.2. Changes in living standards over time are also great.3. The explanation for differences in living standards lies in differences inproductivity.4. Definition of productivity: the quantity of goods and services producedfrom each hour of a worker’s time.5. High productivity implies a high standard of living.6. Thus, policymakers must understand the impact of any policy on our ability toproduce goods and services.B. Principle #9: Prices Rise When the Government Prints Too Much Money1. Definition of inflation: an increase in the overall level of prices in theeconomy.2. When the government creates a large amount of money, the value of moneyfalls.3. Examples: Germany after World War I (in the early 1920s), the United States inthe 1970s.C. Principle #10: Society Faces a Short-Run Tradeoff between Inflation and Unemployment1. Definition of Phillips curve: a curve that shows the short-run tradeoffbetween inflation and unemployment.2. This is a controversial topic among economists.3. This tradeoff is only temporary but it can last for several years.4. The Phillips curve is important for understanding the business cycle.5. Definition of business cycle: fluctuations in economic activity, such asemployment and production.Chapter 1/Ten Principles of Economics 96. Policymakers can exploit this tradeoff by using various policy instruments, butthe extent and desirability of these interventions is of continuing debate.D. FYI: How to Read this Book1. Economics is very useful to understand, but it can be a difficult subject to grasp.2. There are five tips to make reading and understanding the material inthe book easier.a. Summarize, don’t highlight.b. Test yourself.c. Practice, practice, practice.d. Study in groups.e. Don’t forget the real world.10 Chapter 1/Ten Principles of EconomicsSOLUTIONS TO TEXT PROBLEMS:Quick Quizzes1. The four principles of economic decisionmaking are: (1) people face tradeoffs; (2) the cost ofsomething is what you give up to get it; (3) rational people think at the margin; and (4) peoplerespond to incentives. People face tradeoffs because to get one thing that they like, they usually have to give up another thing that they like. The cost of something is what you give up to get it, not just in terms of monetary costs but all opportunity costs. Rational people think at the margin by taking an action if and only if the marginal benefits exceed the marginal costs. Peoplerespond to incentives because as they compare benefits to costs, a change in incentives maycause their behavior to change.2. The three principles concerning economic interactions are: (1) trade can make everyone betteroff; (2) markets are usually a good way to organize economic activity; and (3) governments can sometimes improve market outcomes. Trade can make everyone better off because it allowscountries to specialize in what they do best and to enjoy a wider variety of goods and services.Markets are usually a good way to organize economic activity because the invisible hand leadsmarkets to desirable outcomes. Governments can sometimes improve market outcomes because sometimes markets fail to allocate resources efficiently because of an externality or market power.3. The three principles that describe how the economy as a whole works are: (1) a country’sstandard of living depends on its ability to produce goods and services; (2) prices rise when thegovernment prints too much money; and (3) society faces a short-run tradeoff between inflation and unemployment. A country’s standard of living depends on its ability to produce goods andservices, which in turn depends on its productivity, which is a function of the education ofworkers and the access workers have to the necessary tools and technology. Prices rise whenthe government prints too much money because more money in circulation reduces the value of money, causing inflation. Society faces a short-run tradeoff between inflation and unemployment that is only temporary and policymakers have some ability to exploit this relationship usingvarious policy instruments.Questions for Review1. Examples of tradeoffs include time tradeoffs (such as studying one subject over another, orstudying at all compared to engaging in social activities) and spending tradeoffs (such as whether to use your last ten dollars on pizza or on a study guide for that tough economics course).2. The opportunity cost of seeing a movie includes the monetary cost of admission plus the timecost of going to the theater and attending the show. The time cost depends on what else youmight do with that time; if it's staying home and watching TV, the time cost may be small, but if it's working an extra three hours at your job, the time cost is the money you could have earned.3. The marginal benefit of a glass of water depends on your circumstances. If you've just run amarathon, or you've been walking in the desert sun for three hours, the marginal benefit is very high. But if you've been drinking a lot of liquids recently, the marginal benefit is quite low. The point is that even the necessities of life, like water, don't always have large marginal benefits.4. Policymakers need to think about incentives so they can understand how people will respond tothe policies they put in place. The text's example of seat belts shows that policy actions canhave quite unintended consequences. If incentives matter a lot, they may lead to a verydifferent type of policy; for example, some economists have suggested putting knives in steering columns so that people will drive much more carefully! While this suggestion is silly, it highlights the importance of incentives.5. Trade among countries isn't a game with some losers and some winners because trade can makeeveryone better off. By allowing specialization, trade between people and trade betweencountries can improve everyone's welfare.6. The "invisible hand" of the marketplace represents the idea that even though individuals andfirms are all acting in their own self-interest, prices and the marketplace guide them to do what is good for society as a whole.7. The two main causes of market failure are externalities and market power. An externality is theimpact of one person’s actions on the well-being of a bystander, such as from pollution or thecreation of knowledge. Market power refers to the ability of a single person (or small group ofpeople) to unduly influence market prices, such as in a town with only one well or only one cable television company. In addition, a market economy also leads to an unequal distribution ofincome.8. Productivity is important because a country's standard of living depends on its ability to producegoods and services. The greater a country's productivity (the amount of goods and servicesproduced from each hour of a worker's time), the greater will be its standard of living.9. Inflation is an increase in the overall level of prices in the economy. Inflation is caused byincreases in the quantity of a nation's money.10. Inflation and unemployment are negatively related in the short run. Reducing inflation entailscosts to society in the form of higher unemployment in the short run.Problems and Applications1. a. A family deciding whether to buy a new car faces a tradeoff between the cost of the carand other things they might want to buy. For example, buying the car might mean theymust give up going on vacation for the next two years. So the real cost of the car is thefamily's opportunity cost in terms of what they must give up.b. For a member of Congress deciding whether to increase spending on national parks, thetradeoff is between parks and other spending items or tax cuts. If more money goesinto the park system, that may mean less spending on national defense or on the policeforce. Or, instead of spending more money on the park system, taxes could be reduced.c. When a company president decides whether to open a new factory, the decision is basedon whether the new factory will increase the firm's profits compared to other alternatives.For example, the company could upgrade existing equipment or expand existing factories.The bottom line is: Which method of expanding production will increase profit the most?d. In deciding how much to prepare for class, a professor faces a tradeoff between thevalue of improving the quality of the lecture compared to other things she could do withher time, such as working on additional research.2. When the benefits of something are psychological, such as going on a vacation, it isn't easy tocompare benefits to costs to determine if it's worth doing. But there are two ways to think aboutthe benefits. One is to compare the vacation with what you would do in its place. If you didn'tgo on vacation, would you buy something like a new set of golf clubs? Then you can decide ifyou'd rather have the new clubs or the vacation. A second way is to think about how much work you had to do to earn the money to pay for the vacation; then you can decide if thepsychological benefits of the vacation were worth the psychological cost of working.3. If you are thinking of going skiing instead of working at your part-time job, the cost of skiingincludes its monetary and time costs, which includes the opportunity cost of the wages you aregiving up by not working. If the choice is between skiing and going to the library to study, then the cost of skiing is its monetary and time costs including the cost to you of getting a lower grade in your course.4. If you spend $100 now instead of saving it for a year and earning 5 percent interest, you aregiving up the opportunity to spend $105 a year from now. The idea that money has a time value is the basis for the field of finance, the subfield of economics that has to do with prices offinancial instruments like stocks and bonds.5. The fact that you've already sunk $5 million isn't relevant to your decision anymore, since thatmoney is gone. What matters now is the chance to earn profits at the margin. If you spendanother $1 million and can generate sales of $3 million, you'll earn $2 million in marginal profit,so you should do so. You are right to think that the project has lost a total of $3 million ($6million in costs and only $3 million in revenue) and you shouldn't have started it. That's true, but if you don't spend the additional $1 million, you won't have any sales and your losses will be $5million. So what matters is not the total profit, but the profit you can earn at the margin. In fact, you'd pay up to $3 million to complete development; any more than that, and you won't beincreasing profit at the margin.6. Harry suggests looking at whether productivity would rise or fall. Productivity is certainlyimportant, since the more productive workers are, the lower the cost per gallon of potion. Ronwants to look at average cost. But both Harry and Ron are missing the other side of theequation−revenue. A firm wants to maximize its profits, so it needs to examine both costs andrevenues. Thus, Hermione is right−it’s best to examine whether the extra revenue wouldexceed the extra costs. Hermione is the only one who is thinking at the margin.7. a. The provision of Social Security benefits lowers an individual’s incentive to save forretirement. The benefits provide some level of income to the individual when he or sheretires. This means that the individual is not entirely dependent on savings to supportconsumption through the years in retirement.b. Since a person gets fewer after-tax Social Security benefits the greater is his or herearnings, there is an incentive not to work (or not work as much) after age 65. Themore you work, the lower your after-tax Social Security benefits will be. Thus thetaxation of Social Security benefits discourages work effort after age 65.8. a. When welfare recipients who are able to work have their benefits cut off after two years,they have greater incentive to find jobs than if their benefits were to last forever.b. The loss of benefits means that someone who can't find a job will get no income at all,so the distribution of income will become less equal. But the economy will be moreefficient, since welfare recipients have a greater incentive to find jobs. Thus the changein the law is one that increases efficiency but reduces equity.9. By specializing in each task, you and your roommate can finish the chores more quickly. If youdivided each task equally, it would take you more time to cook than it would take your roommate, and it would take him more time to clean than it would take you. By specializing, you reduce the total time spent on chores.Similarly, countries can specialize and trade, making both better off. For example, suppose ittakes Spanish workers less time to make clothes than French workers, and French workers canmake wine more efficiently than Spanish workers. Then Spain and France can both benefit ifSpanish workers produce all the clothes and French workers produce all the wine, and theyexchange some wine for some clothes.10. a. Being a central planner is tough! To produce the right number of CDs by the right artistsand deliver them to the right people requires an enormous amount of information. Youneed to know about production techniques and costs in the CD industry. You need toknow each person's musical tastes and which artists they want to hear. If you make thewrong decisions, you'll be producing too many CDs by artists that people don't want tohear, and not enough by others.b. Your decisions about how many CDs to produce carry over to other decisions. You haveto make the right number of CD players for people to use. If you make too many CDsand not enough cassette tapes, people with cassette players will be stuck with CDs theycan't play. The probability of making mistakes is very high. You will also be faced withtough choices about the music industry compared to other parts of the economy. If youproduce more sports equipment, you'll have fewer resources for making CDs. So alldecisions about the economy influence your decisions about CD production.11. a. Efficiency: The market failure comes from the monopoly by the cable TV firm.b. Equityc. Efficiency: An externality arises because secondhand smoke harms nonsmokers.d. Efficiency: The market failure occurs because of Standard Oil's monopoly power.e. Equityf. Efficiency: There is an externality because of accidents caused by drunk drivers.12. a. If everyone were guaranteed the best health care possible, much more of our nation'soutput would be devoted to medical care than is now the case. Would that be efficient?If you think that currently doctors form a monopoly and restrict health care to keep theirincomes high, you might think efficiency would increase by providing more health care.But more likely, if the government mandated increased spending on health care, theeconomy would be less efficient because it would give people more health care than theywould choose to pay for. From the point of view of equity, if poor people are less likelyto have adequate health care, providing more health care would represent animprovement. Each person would have a more even slice of the economic pie, thoughthe pie would consist of more health care and less of other goods.b. When workers are laid off, equity considerations argue for the unemployment benefitssystem to provide them with some income until they can find new jobs. After all, no oneplans to be laid off, so unemployment benefits are a form of insurance. But there’s anefficiency problem why work if you can get income for doing nothing? The economyisn’t operating efficiently if people remain unemployed for a long time, andunemployment benefits encourage unemployment. Thus, there’s a tradeoff betweenequity and efficiency. The more generous are unemployment benefits, the less income islost by an unemployed person, but the more that person is encouraged to remainunemployed. So greater equity reduces efficiency.13. Since average income in the United States has roughly doubled every 35 years, we are likely tohave a better standard of living than our parents, and a much better standard of living than our grandparents. This is mainly the result of increased productivity, so that an hour of workproduces more goods and services than it used to. Thus incomes have continuously risen overtime, as has the standard of living.14. If Americans save more and it leads to more spending on factories, there will be an increase inproduction and productivity, since the same number of workers will have more equipment towork with. The benefits from higher productivity will go to both the workers, who will get paidmore since they're producing more, and the factory owners, who will get a return on theirinvestments. There is no such thing as a free lunch, however, because when people save more, they are giving up spending. They get higher incomes at the cost of buying fewer goods.15. a. If people have more money, they are probably going to spend more on goods andservices.b. If prices are sticky, and people spend more on goods and services, then output mayincrease, as producers increase output to meet the higher demand rather than raisingprices.c. If prices can adjust, then the higher spending of consumers will be matched withincreased prices and output won't rise.16. To make an intelligent decision about whether to reduce inflation, a policymaker would need toknow what causes inflation and unemployment, as well as what determines the tradeoff between them. Any attempt to reduce inflation will likely lead to higher unemployment in the short run. A policymaker thus faces a tradeoff between the benefits of lower inflation compared to the cost of higher unemployment.。
微观经济学练习题答案(曼昆)
微观经济学部分练习题参考答案第一单元：经济学概述、供求与局部均衡练习题一、单选题1。
说“资源是稀缺的”是指BA世界上大多数人生活在贫困中 B。
相对于资源的需求而言,资源总是不足的C。
资源必须保留给下一代 D.世界上资源最终将由于生产更多的物品和劳务而消耗光2.经济物品是指DA。
有用的物品 B.稀缺的物品 C。
要用钱购买的物品 D。
有用且稀缺的物品3。
经济学可定义为CA。
政府对市场制度的干预 B。
企业取得利润的活动C.研究如何最合理地配置稀缺资源于诸多用途 D。
人们靠收入生活4.从经济学的观点看,资源配置问题说明的是CA.人们的需要是多方面的且是无止境的 B。
资源的供给是有限的C。
一种资源有许多可供选择的用途，但有一种利用效果最佳 D.以上说法都对5.下列命题中那一个不是实证经济学命题 CA.昨日中国人民银行宣布把存款基准利率降低0。
25％ B。
2011年失业率超过8％C。
个人所得税对中等收入家庭是不公平的 D。
个人所得税的起征点提高了6。
某人有10万元资金，可供选择的用途及各种用途能获得的收入是:开饭店获利3万元，炒股票获利3.5万元，进行期货投机获利4万元。
该人选择期货投机的机会成本为AA.13.5万元B.20。
5万元C.14万元D.13万元7.保持所有其他因素不变，某种商品的价格下降，将导致CA.需求增加 B。
需求减少 C。
需求量增加 D.需求量减少8。
在某种物品价格上升的百分比既定时,引起需求量减少最大的情况是CA.价格上升后时间长B.这种物品的支出在收入中占的比例大C。
很容易得到替代品 D。
以上全对9。
如果某种物品小幅度降价会引起需求量大幅度变动，那么，该物品BA。
需求缺乏弹性 B.需求富有弹性 C。
需求单位弹性 D.需求价格弹性接近于零10.一条垂直的需求曲线所表示的是DA。
单位弹性 B.无限弹性 C。
富有弹性 D.需求的价格弹性为零11.下面哪一种物品的需求价格弹性最大BA。
大米 B。
微观经济学英文作业答案（chap1-chap13）
微观经济学英文作业答案（chap1-chap13）Microeconomics, 8e (Parkin) Testbank 2 Answer（chap1-chap13）Chapter 1 What Is Economics?1) An inducement to take a particular action is calledAnswer: D2) All economic questions arise because weAnswer: A3) All economic questions arise becauseAnswer: C4) Scarcity isAnswer: A5) Scarcity arises fromAnswer: C6) When an economist talks of scarcity, the economist is referring to theAnswer: C7) Scarcity is experienced byAnswer: D8) Fundamental economic problems basically arise fromAnswer: D9) Scarcity exists becauseAnswer: B10) Scarcity can be eliminated throughAnswer: D11) Scarcity is common to all economic systems because resources areAnswer: D12) People must make choices becauseAnswer: B13) The problem of "scarcity" appliesAnswer: D14) When a wealthy businessman is unable to buy tickets to the Super Bowl, he or sheexperiences ________.Answer: B15) In every economic system, choices must be made because resources are ________ and ourwants are ________Answer: B16) The fundamental questions in economics result fromAnswer: D17) Economics is best defined asAnswer: C18) The study of economicsAnswer: B19) Economics is best defined as the science of choice and how people cope withAnswer: C20) Which of the following best defines the subject of economics?Answer: DChapter 2 The Economic Problem1) The production possibilities frontier representsAnswer: C2) A production possibilities frontier (PPF)Answer: B3) Which of the following is NOT true concerning a society's production possibilities frontier(PPF)?Answer: D4) A point outside a production possibilities frontier indicatesAnswer: B5) A production possibilities frontier illustrates the maximum amount of two differentgoods that can be produced ifAnswer: A6) Which of the following is NOT illustrated by a production possibilities frontier?Answer: D7) Suppose the country of Popcorn produces only jets and corn. If Popcorn cannot produceany more jets without giving up corn, we say that Popcorn has achievedAnswer: B8) Production efficiency can be defined asAnswer: C9) A society that is on its production possibilities frontier isAnswer: D10) If an economy is operating at a point inside the production possibilities frontier, then Answer: A11) Any point on a production possibilities frontier (PPF) itself isAnswer: A12) A reduction in the amount of unemploymentAnswer: B13) A country that must decrease production of one good in order to increase theproduction of anotherAnswer: B14) A president of the United States promises to produce more defense goods without anydecreases in the production of other goods. This promise can be validAnswer: B15) When producing goods and services, tradeoffs exist becauseAnswer: B16) Opportunity cost is best defined asAnswer: C17) A choice is made. The value of the highest-valued alternative given up is the ________ ofthe choice made.Answer: C18) Opportunity cost is expressed in a production possibilities frontier (PPF) by amovementAnswer: D19) When operating on its PPF, a country can produce 2 tons of butter and 200 cars OR 3 tons ofbutter and 150 cars. The opportunity cost of 1 ton of butter is ________ cars per ton of butter. Answer: C20) When moving along the production possibilities frontier, opportunity cost is measured as the Answer: BChapter 3 Demand and Supply1) The relative price of a good isAnswer: A2) All of the following statements are true except:Answer: C3) Joe pays $8,000.00 in tuition. The 8,000 dollar tuition Joe pays is an example of what economists callAnswer: B4) A relative price isAnswer: D5) Suppose the price of a football is $20.00 and the price ofa basketball is $10.00. The _______ of a football is ________.Answer: A6) The price of a film camera is $150 and the price of a similar digital camera is $300. What is the relative price of the digital camera?Answer: C7) The price of a video tape rental is currently $1.50 and the price of a DVD rental is $2.50. If the price of a video tape rental increases by $0.50, the relative price a DVD rental8) The price of a video tape rental is currently $1.50 and the price of a DVD rental is $2.50. If the price of a video tape rental falls by $0.50, the relative price a DVD rentalAnswer: A9) The price of a bag of corn chips is $3, and the price of a bottle of soda is $1. What is the relative price of a bag of corn chips?Answer: A10) The price of a bag of corn chips is $3, and the price of a bottle of soda is $1. What is therelative price of a bottle of soda?Answer: B11) Twenty years ago a stove cost $300 and a refrigerator cost $1,500. Today a stove costs $600,while a refrigerator costs $1,800. Which of the followingstatements is true?Answer: C12) The ABC Music club charges a price of $8 for a cassette and $16 for a CD. For an ABCMusic Club member, the opportunity cost of a CD isAnswer: A13) If the money price of wheat increases and no other prices change, theAnswer: B14) When graphing a demand curve for corn, we are showing the relationship between thequantity demanded of corn and theAnswer: B15) The "law of demand" states that changes inAnswer: C16) The "law of demand" is illustrated by aAnswer: C17) The "law of demand" refers to the fact that, all other things remaining the same, when theprice of a good risesAnswer: D18) The "law of demand" states that, other things remaining the same, the quantity demanded ofany good isAnswer: A19) The "law of demand" most directly means that consumers buyAnswer: B20) The "law of demand" states that, other thing remaining the same, the higherAnswer: DChapter 4 Elasticity1) Elasticity generally measures theAnswer: D2) The price elasticity of demand equals the magnitude of theAnswer: B3) An elasticity of demand is measured inAnswer: D4) The price elasticity of demand is defined as the magnitude of theAnswer: C5) Suppose the price of burgers increases from $2 to $3 each. The degree to which quantity demanded responds to this price increase depends on theAnswer: A6) The price elasticity of demand is calculated as the absolute value of theAnswer: A7) The price elasticity of demand refers to theAnswer: C8) The price elasticity of demand for oranges ________ change if the units of the quantity was changed from pounds to kilograms and ________ change if the units of the price was changed from dollars to cents.Answer: D9) Suppose the quantity of gasoline is measured in gallons and the price of gasoline is measured in dollars. The price elasticity of demand is 0.67. If the price of gasoline was now measured in cents rather than dollars, the price elasticity ofdemand would now be10) To determine the effect a 25 percent increase in the price of apples has on the quantity ofapples demanded, you must know the value of theAnswer: C11) Because of an increase in the price of leather, the average price of a pair of women's dressshoes increased 12 percent. If the price elasticity of demand for women's dress shoes is 0.85, which of the following will happen?Answer: B12) The price of a good rises by 12 percent and the price elasticity of demand for the good is0.85. Which of the following is a correct interpretation of these facts?Answer: D13) If a 20 percent increase in the price of a used car results in a 10 percent decrease in thequantity of used cars demanded, then the price elasticity of demand equalsAnswer: A14) Suppose that the quantity of pizza demanded decreased by 15 percent after an increase inprice of 10 percent. What is the price elasticity of demand for pizza?Answer: A15) When the price of a movie ticket increases from $5 to $7, the quantity of tickets demandeddecreases from 600 to 400 a day. What is the price elasticity of demand for movie tickets?Answer: B16) A rise in the price of oranges from $2.00 to $2.50 per pound decreases the quantitydemanded from 2,000 to 1,800 pounds. The price elasticity of demand for oranges isAnswer: A17) If the price of a movie ticket increases by 4 percent and the quantity of movies demandedfalls by 2 percent, the price elasticity of demand isAnswer: C18) If the quantity demanded of hamburgers increases by 20 percent when the price decreases by 5 percent, then the price elasticity of demand isAnswer: B19) Taco Bell's economists determine that the price elasticity of demand for their tacos is 2.0. So,if Taco Bell raises the price of its tacos by 6.0 percent, the quantity demanded will decrease by ________ percent.Answer: D20) Using average price and average quantity, calculate the price elasticity of demand if a pricerise from $8 to $10 and decreases the quantity demanded from 20 units to 15 units. The price elasticity of demand equals Answer: BChapter 5 Efficiency and Equity1) All of the following describe the concept of marginal benefit except theAnswer: C2) The maximum amount of other goods and services that people are willing to give up in order to get one more personalcomputer is the3) Which of the following is correct?Answer: C4) The principle of decreasing marginal benefit implies that theAnswer: A5) Marginal benefit is theAnswer: D6) "Value" means theAnswer: A7) A demand curve measuresAnswer: D8) The demand curve for CDs shows theAnswer: B9) Marginal benefitAnswer: D10) Marginal benefitAnswer: B11) The demand curveAnswer: D12) A demand curve can be alsoAnswer: C13) The demand curve also isAnswer: B14) The demand curve for coffee is the same as theAnswer: B15) Consumer surplus is the ________ summed over the quantity bought.Answer: C16)________ is the difference between the value of a good andthe price paid for it summed over the quantity bought.Answer: B17) Consumer surplus is theAnswer: C18) Joe receives consumer surplus on the new computer he buys ifAnswer: C19) When the Smith's were shopping for their present home, the asking price from the previousowner was $250,000.00. The Smith's had decided they would pay no more than $245,000.00 for the house. After negotiations, the Smith's actually purchased the house for $239,000.00.They, therefore, enjoyed a consumer surplus ofAnswer: C20) Joe is willing to pay $4 for his first slice of pizza and $3 for his second slice of pizza. If the market price is $2, on his two slices of pizza Joe receives a total consumer surplus of Answer: BChapter 6 Markets in Action1) The short run effect of a decrease in the supply of housing is a ________ in the rent and ________ in the quantity of housing units.Answer: A2) In the absence of a rent ceiling, the long run adjustment to an initial decrease in the supply of housing isAnswer: C3) The above table gives the demand schedule and the supply schedule for housing in Anytown, U.S.A. If a price ceiling of $300 is imposed in the housing market, thenAnswer: B4) The above table gives the demand schedule and the supply schedule for housing in Anytown, U.S.A. If a price ceiling of $600 was imposed in the housing market, thenAnswer: C5) In the above figure, which of the following shifts shows the effect of severe flooding that destroys many of the apartment buildings in Bigtown?Answer: B6) A rent ceiling results in a shortage. As a result, which of the following do you expect? Answer: D7) When a rent ceiling is imposed in a housing market, the opportunity cost of housing equals the Answer: C8) A rent ceiling results in a shortage. As a result, which of the following do you expect? Answer: C9) The above figure shows the apartment rental market in Bigtown. At what rent will there be neither a shortage nor a surplus of apartments?Answer: C10) The above figure shows the apartment rental market in Bigtown. If severe flooding resulted in the destruction of many of the city's apartment buildings, then theAnswer: A11) The above figure shows the apartment rental market in Bigtown. If the Bigtown Housing Authority imposes a rent ceiling below $750 per month, the rent ceiling will helpAnswer: B12) The above figure shows the apartment rental market in Bigtown. If the Bigtown HousingAuthority imposes a rent ceiling above $750 per month, the ceiling willAnswer: D13) The above figure shows the apartment rental market in Bigtown. If there is a shortage of200,000 apartments in the Bigtown rental market, it may be because the Bigtown Housing Authority has imposed a rent Answer: B14) The above figure shows the apartment rental market in Bigtown. If the market is in equilibrium and then the Bigtown Housing Authority imposes a rent ceiling of $500 per apartment, which of the following would occur?Answer: B15) The above figure shows the apartment rental market in Bigtown. If the Bigtown HousingAuthority imposes a rent ceiling of $500 per apartment, the deadweight loss will be Answer: C16) The figure above shows the demand for and supply of rental housing in Smallton. If a rent ceiling is set at $800, how many apartment units are rented?Answer: B17) The figure above shows the demand for and supply of rental housing in Smallton. If a rent ceiling is set at $800, what is the rent?Answer: B18) The figure above shows the demand for and supply of rental housing in Smallton. If a rent ceiling is set at $800, there is Answer: D19) The figure above shows the demand for and supply of rental housing in Smallton. If a rent ceiling is set at $400, how many apartment units are rented?Answer: A20) The figure above shows the demand for and supply of rental housing in Smallton. If a rent ceiling is set at $400, what is the rent?Answer: CChapter 7 Utility and Demand1) A household's consumption choices cannot exceed limits created byAnswer: C2) In order to determine a household's budget line, you must know theAnswer: A3) Suppose we know that Freddy likes to consume only two things: Fritos and Fruit Drinks. If we know only that Fritos and Fruit Drinks cost $1 each, we canAnswer: D4) Jake plans to spend $100 on fried chickens and Pepsi. The price of a fried chicken is $5 and Pepsi is $2 per bottle. If Jake buys 10 fried chickens how many bottles of Pepsi can he buy? Answer: C5) Bob plans to spend $60 per month on DVD movie rentals and CDs. The price of a movie rental is $3 and the price of a CD is $15. If Bob rents 5 DVDs per month, how many CDs can he buy?Answer: C6) Larry spends all his $800 monthly income on pizza and gasoline. The price of pizza is $4 a slice, and the price of gasoline is $2 per gallon. If Larry buys 150 slices of pizza per month, his budget constraint will allow him to buy ________ gallons of gas per month.Answer: A7) Larry spends all his $800 monthly income on pizza andgasoline. The price of pizza is $4 a slice, and the price of gasoline is $2 per gallon. The relative price of gasoline isAnswer: B8) Larry spends all his $800 monthly income on pizza and gasoline. The price of pizza is $4 a slice, and the price of gasoline is $2 per gallon. Larry's real monthly income in terms of pizza is Answer: C9) The figure above shows Tanya's consumption possibilities. Tanya spends $100 per month on movies and restaurant meals. The price of a movie ticket is ________ and the price of a restaurant meal is ________.Answer: D10) The figure above shows Tanya's consumption possibilities. Which of the followingcombinations of goods is not affordable?Answer: C11) The figure above shows Tanya's consumption possibilities when the price of a restaurantmeal is $20. If the price of a restaurant meal falls to $10 and Molly buys 12 movie tickets, how many restaurant meals can she buy?Answer: C12) Total utility describesAnswer: A13) The total benefit that a person gets from the consumption of goods and services is calledAnswer: A14) A measure of all the benefit you get from all the coffee you consume is yourAnswer: C15) Which of the following statements is true?Answer: B16) If we describe Lola's total satisfaction she receives from eating pizza, we are referring toLola'sAnswer: B17) The figure above shows how your total utility changes with the number of bananas youconsume. How many units of total utility would you get if you consumed four bananas each week?Answer: D18) Marginal utility is theAnswer: B19) ________ is the additional satisfaction a person receives from consuming an extra unit of a good.Answer: B20) The measure of the benefit you get from consuming the next cup of coffee is yourAnswer: AChapter 8 Possibilities, Preferences, and Choices1) Which of the following is NOT a divisible good?Answer: D2) A consumer's budget line depictsAnswer: B3) In order to draw an individual's budget line, we must knowAnswer: B4) Junkfood Jill spends all of her income on jellybeans and Jolt cola. Suppose that Jill's income is$30, the price of a bag of jellybeans is $6, and the price of a bottle of Jolt cola is $2. Which of the following combinations ofjellybeans and Jolt cola lies inside of Jill's budget line? Answer: D5) Junkfood Jill spends all of her income on jellybeans and Jolt cola. Suppose that Jill's income is $30, the price of a bag of jellybeans is $6, and the price of a bottle of Jolt cola is $2. If bags of jellybeans are graphed along the vertical axis and bottles of Jolt cola are graphed along the horizontal axis, what is the slope of the budget line?Answer: D6) Suppose that Dave has $200 to spend per week and he buys only magazines and pizza. The price of a pizza is $10 and the price of a magazine is $5. What is the maximum amount of pizza Dave can buy each week?Answer: B7) Suppose that Dave has $200 to spend per week and he buys only magazines and pizza. The price of a pizza is $10 and the price of a magazine is $5. If Dave buys 15 pizza each week, what is the maximum number of magazines can he buy?Answer: C8) Suppose that Dave has $200 to spend per week and he buys only magazines and pizza. The price of a pizza is $10 and the price of a magazine is $5. If Dave buys 20 magazines per week, which of the following amount of pizza is not affordable to him?Answer: B9) Jake plans to spend $200 on fried chickens and Pepsi. The price of a fried chicken is $7 and Pepsi is $2.60 per bottle. If Jake buys 10 fried chickens how many bottles of Pepsi can he afford?Answer: B10) Ron spends $150 on movie tickets and pizza. The price ofa pizza is $10 and a movie ticket is $7.50. If Ron buys 9 movie tickets how many pizzas can he afford?Answer: B11) Nick consumes two goods, chips and lemonade. Located on the x-axis is the quantity ofchips and on the y-axis is the quantity of lemonade. The slope of the budget line equals the negative of theAnswer: C12) Goods that can be bought in any quantity desired are calledAnswer: A13) For a consumer, a budget line shows the boundary betweenAnswer: C14) The limit on people's consumption choices is determined byAnswer: C15) Sam buys gasoline and coffee each week. In order to draw his budget line between gasoline and coffee, Sam would have to knowAnswer: D16) If Sam has $60.00 each week to spend on gasoline and coffee, and their respective prices are $1.50 per gallon and $3.00 per pound, which of the following equations represents his budget line?Answer: C17) Suppose the price of coffee is $3, the price of a bagel is $2 and a person's budget is $40. Thebudget line's equation isAnswer: B18) The slope of a budget line reflectsAnswer: C19) Jake spends $200 on fried chickens and Pepsi. The price of a fried chicken is $5 and Pepsi is $2.50 per bottle. With the quantity of Pepsi being measured along the vertical axis, the slope of Jake's budget line is ________ per fried chicken.Answer: D20) Ron spends $150 on movie tickets and pizza. The price ofa pizza is $10 and a movie ticket is $7.50. With the quantity of movies measured along the vertical axis, the slope of Ron's budget line (with movies on the vertical axis) is ________ per pizza Answer: BChapter 9 Organizing Production1) An institution that hires productive resources and organizes them to produce and sell goods and services is called Answer: C2) A firm's basic goal is to maximize itsAnswer: A3) What is the main goal of a firm?Answer: C4) A firm's goal is best described asAnswer: D5) A firm's basic goal is best described asAnswer: C6) The value of a firm's best alternative use of its resources is called itsAnswer: D7) The value of the firm's best alternative use of its resources is defined as itsAnswer: D8) Opportunity cost differs from the costs measured by an accountant because opportunity cost includes allAnswer: B9) Opportunity cost equalsAnswer: D10) If instead of working on his own as a consultant making $25,000, Joe takes a job at a bank,the $25,000 isAnswer: A11) Mr. Sweet opened a candy store. He rented a building for $30,000 a year. During the first year of operation, Sweet paid $40,000 to his employees, $10,000 for utilities, and $20,000 for goods he bought from other firms. His total revenue was $135,000. Sweet's best alternative to running this candy store is to work for Wal-Mart as a sales associate for $15,000 a year. What is Sweet's total opportunity cost?12) A firm pays its workers $10 per hour. This cost is an example of anAnswer: D13) Explicit costs differ from implicit costs in thatAnswer: B14) Mr. Sweet opened a candy store. He rented a building for $30,000 a year. During the firstyear of operation, Sweet paid $40,000 to his employees, $10,000 for utilities, and $20,000 for goods he bought from other firms. His total revenue was $135,000. Sweet's best alternative to running this candy store is to work for Wal-Mart as a sales associate for $15,000 a year.What are Sweet's explicit costs?Answer: B15) Pippi owns a pizza parlor. If Pippi owns a pizza oven, for its use she incurs ________. If sherents a pizza oven, for its use she incurs ________.Answer: A16) The opportunity cost that a firm incurs for using a resource that it already owns is calledAnswer: B17) Costs as measured by accountants generally do not include anyAnswer: C18) A firm incurs implicit costs whenAnswer: C19) Cost, as measured by an accountant, generally does not includeAnswer: A20) Which of the following are two components of the opportunity cost of using capital alreadyowned by the firm?Answer: DChapter 10 Output and Costs1) A period of time in which the quantity of at least one factor of production used by a firm is fixed is called theAnswer: C2) Economists define the short run as a period of time so short thatAnswer: D3) The short run is a time frame in whichAnswer: A4) In the short run,Answer: B5) In the short runAnswer: C6) The short run is a time period during whichAnswer: C7) The short run is defined asAnswer: A8) The short run9) When the demand for electricity peaks during the hottest days of summer, Florida Power and Light Company can generate more electricity by using more fuel and increasing the working hours of many of its employees. The company cannot, however, increase electric power production by building additional generating capacity. This means that the company is in the Answer: B10) An example of a fixed factor of production isAnswer: A11) A period of time in which the quantity of all factors of production used by a firm can bevaried is called theAnswer: D12) In the long run, a firm hasAnswer: A13) The long runAnswer: D14) The long run is a period of time in whichAnswer: A15) Which of the following is characteristic of the long run?Answer: C16) After constructing a new factory, the cost of building the factory is aAnswer: D17) Total product is18) All the production points that lieAnswer: D19) The marginal product of labor is equal to theAnswer: B20) Marginal product isAnswer: AChapter 11 Perfect Competition1) Which of the following is a defining characteristic of a perfectly competitive industry? Answer: C2) Which of the following is true regarding a perfectly competitive firm?Answer: D3) Which of the following is true regarding perfect competition?Answer: C4) Which of the following is NOT an assumption of perfect competition?Answer: C5) Which of the following is NOT an assumption of perfect competition?Answer: A6) Which of the following is NOT an assumption of perfectly competitive markets?Answer: D7) Perfect competition implies thatAnswer: D8) A perfectly competitive industry is characterized byAnswer: D9) Perfect competition exists in an industry if10) An industry is perfectly competitive ifAnswer: C11) Which of the following is NOT an assumption of perfect competition?Answer: C12) Which of the following is NOT a defining characteristic of perfectly competitive industries? Answer: D13) Which of the following is NOT a characteristic of a perfectly competitive industry? Answer: C14) Which of the following is NOT a characteristic of perfect competition?Answer: C15) In order for perfect competition to arise, it must be the case thatAnswer: D16) If the minimum efficient scale of a firm is small relative to the demand for the good, then Answer: A17) In perfect competition, theAnswer: A18) Which of the following conditions is consistent with perfect competition?Answer: B19) An example of a perfectly competitive industry isAnswer: B20) An example of a perfectly competitive firm isAnswer: AChapter 12 Monopoly1) Market power is theAnswer: C2) A monopoly is best defined as a firm thatAnswer: A3) An example of a monopoly isAnswer: C4) An example of a monopoly would beAnswer: D5) A monopolistAnswer: C6) Which of the following is NOT a characteristic of a monopoly?Answer: D7) Which of the following is a characteristic of a monopoly?Answer: D8) Which of the following is a characteristic of monopoly?Answer: C9) Which of the following can create a monopoly?Answer: D10) A barrier to entry isAnswer: A11) DeBeers monopolizes the world's diamond supply because itAnswer: C12) If the government grants a firm a public franchise to supply coal, a monopoly is created by Answer: B13) Which of the following is NOT a barrier to entry for a monopoly?Answer: C14) Which of the following is a barrier to entry for a monopoly?Answer: A15) Which of the following is NOT a legal barrier to entry?Answer: D16) Patents encourage invention byAnswer: C17) Suppose a new vaccine for Lyme disease is developed by Merck, a large drug company. Which of the following is most likely to occur?Answer: A18) Patents encourage inventions because without a patentAnswer: A19) A legal monopoly is defined as a market whereAnswer: B20) Natural monopolies occur when there areAnswer: CChapter 13 Monopolistic Competition and Oligopoly1) In monopolistic competition, there areAnswer: A2) ACME, Inc. operates in a market structure in which there are many other firms that find it easy to enter or exit. ACME is operating in ________ market.Answer: B3) A characteristic of monopolistic competition isAnswer: C4) Which of the following is a characteristic of monopolistic competition?Answer: A5) Monopolistic competition is a market structure in whichAnswer: B6) Monopolistic competition is a market structure in whichAnswer: A。
曼昆微观经济学课后标准答案
曼昆微观经济学课后答案作者: 日期:1 .C on sider the market for DVD movies,TV scree ns,a nd ticket at movie theaters.A •对每一对物品，确定它们是互补品还是替代品・DVD和电视・DVD和电影票・电视和电影票As: compleme nts substitutes substitutesB •假设技术进步降低了制造电视机的成本。
画一个图说明电视机市场会发生什么变动。
As: dema nd curve不娈supply curve向右移:技术进步降低了制造电视机的成本，使电视机的供给曲线向右移动。
电视机的需求曲线不变。
电视机的均衡价格下降，均衡价格上升。
C .再画两个图说明电视机市场的变动如何影响DVD市场和电影票市场。
答：DVD : dema nd curve不变supply curve向右移。
由于电视机和DVD是互补品，电视机价格的下降使DVD的需求增加。
需求增加引起DVD均衡价格上升，均衡数量增加。
Movie tickets : supply curve不变dema nd curve向左移。
由于电视机和电影票是替代品，电视机价格的下降使电影票需求减少。
需求的减少使电影票的均衡价格下降，均衡数量减少。
2.Over the past 20 years,tech no logical adva nee reduces the cost of computer chips.How do you think this affected the market for computers?For computer software?For typewriters?As: computer: supply curve 向右彳多price 卜降3.Consider total cost and total revenue given in the following table:产量01234567总成本89101113192737总收益08162432404856computer software: supply curve 向右彳多price 卜•降软件厂、・i) o _—八j IX2I uWhen MR=MC profit maximum 即Q=6 TC=27B・计算每种产量时的边际收益和边际成本。
曼昆微观经济学课后练习英文答案
✍ how to define and measure consumer surplus.✍ the link between sellers’ costs of producing a good and the supply curve.✍ how to define and measure producer surplus.✍ that the equilibrium of supply and demand maximizes total surplus in a market. CONTEXT AND PURPOSE:Chapter 7 is the first chapter in a three-chapter sequence on welfare economics and market efficiency. Chapter 7 employs the supply and demand model to develop consumer surplus and producer surplus as a measure of welfare and market efficiency. These concepts are then utilized in Chapters 8 and 9 to determine the winners and losers from taxation and restrictions on international trade.The purpose of Chapter 7 is to develop welfare economics—the study of how the allocation of resources affects economic well-being. Chapters 4 through 6 employed supply and demand in a positive framework, which focused on the question, “What is the equilibrium price and quantity in a market?” This chapter now addresses the normative question, “Is the equilibrium price and quantity in a market the best possible solution to the resource allocation problem, or is it simply the price and quantity that balance supply and demand?” Students will discover that under most circumstances the equilibrium price and quantity is also the one that maximizes welfare.KEY POINTS:? Consumer surplus equals buyers’ willingness to pay for a good minus the amount they actually pay for it, and it measures the benefit buyers get from participating in a market.Consumer surplus can be computed by finding the area below the demand curve and above the price.? Producer surplus equals the amount sellers receive for their goods minus their costs of production, and it measures the benefit sellers get from participating in a market. Producer surplus can be computed by finding the area below the price and above the supply curve.? An allocation of resources that maximizes the sum of consumer and producer surplus is said to be efficient. Policymakers are often concerned with the efficiency, as well as the equality, of economic outcomes.? The equilibrium of supply and demand maximizes the sum of consumer and producer surplus.That is, the invisible hand of the marketplace leads buyers and sellers to allocate resources efficiently.? Markets do not allocate resources efficiently in the presence of market failures such as market power or externalities.CHAPTER OUTLINE:I. Definition of welfare economics: the study of how the allocation of resources affects economic well-being.A. Willingness to Pay1. Definition of willingness to pay: the maximum amount that a buyer will pay for a good.2. Example: You are auctioning a mint-condition recording of Elvis Presley’s first album. Four buyers show up. Their willingness to pay is as follows:for John. Because John is willing to pay more than he has to for the album,he derives some benefit from participating in the market.3. Definition of consumer surplus: the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.4. Note that if you had more than one copy of the album, the price in the auction would end up being lower (a little over $70 in the case of two albums) and both John and Paul would gain consumer surplus.B. Using the Demand Curve to Measure Consumer Surplus1. We can use the information on willingness to pay to derive a demand curve for the rare2. . Because the demand curve shows the buyers’ willingness to pay, we can use the demand curve to measure consumer surplus.C. How a Lower Price Raises Consumer Surplusare paying less for the product than before (area A on the graph).b. Because the price is now lower, some new buyers will enter the market and receive consumer surplus on these additional units of output purchased (area B on the graph).D. What Does Consumer Surplus Measure?1. Remember that consumer surplus is the difference between the amount that buyers are willing to pay for a good and the price that they actually pay.2. Thus, it measures the benefit that consumers receive from the good as the buyers themselves perceive it.III. Producer SurplusA. Cost and the Willingness to Sell1. Definition of cost: the value of everything a seller must give up to produce a good .2. Example: You want to hire someone to paint your house. You accept bids for the work from four sellers. Each painter is willing to work if the price you will pay exceeds her opportunity cost. (Note that this opportunity cost thus represents willingness to sell.) The costs are: ALTERNATIVE CLASSROOM EXAMPLE:Review the material on price ceilings from Chapter 6. Redraw the market for two-bedroom apartments in your town. Draw in a price ceiling below the equilibriumprice.Then go through:✍ consumer surplus before the price ceiling is put into place.✍ consumer surplus after the price ceiling is put into place.You will need to take some time to explain the relationship between the producers’ willingness to sell and the cost of producing the good. The relationship between cost and the supply curve is not as apparent as the relationship between the demand curve and willingness to pay. It is important to stress that consumer surplus is measured in monetary terms. Consumer surplus gives us a way to place a monetary cost on inefficient market outcomes (due to government involvement or market failure).except for Grandma. Because Grandma receives more than she would require to paint the house, she derives some benefit from producing in the market.4.Definition of producer surplus: the amount a seller is paid for a good minus the seller’s cost of providing it.5. Note that if you had more than one house to paint, the price in the auction would end up being higher (a little under $800 in the case of two houses) and both Grandma and Georgia would gain producer surplus.B. Using the Supply Curve to Measure Producer Surplus1. We can use the information on cost (willingness to sell) to derive a supply curve for2. marginal seller . Because the supply curve shows the sellers’ cost (willingness to sell), we can use the supply curve to measure producer surplus.are receiving more for the product than before (area C on the graph).b. Because the price is now higher, some new sellers will enter the market and receive producer surplus on these additional units of output sold (area D on the graph).D. Producer surplus is used to measure the economic well-being of producers, much like consumer surplus is used to measure the economic well-being of consumers.ALTERNATIVE CLASSROOM EXAMPLE:Review the material on price floors from Chapter 6. Redraw the market for anagricultural product such as corn. Draw in a price support above the equilibriumprice.Then go through:✍ producer surplus before the price support is put in place.✍ producer surplus after the price support is put in place.Make sure that you discuss the cost of the price support to taxpayers.IV.Market EfficiencyA. The Benevolent Social Planner1. The economic well-being of everyone in society can be measured by total surplus, which is the sum of consumer surplus and producer surplus:Total Surplus = Consumer Surplus + Producer SurplusTotal Surplus = (Value to Buyers – Amount Paid by Buyers) +(Amount Received by Sellers – Cost to Sellers)Because the Amount Paid by Buyers = Amount Received bySellers:2. Definition of efficiency: the property of a resource allocation of maximizing the total surplus received by all members of society .3. Definition of equality: the property of distributing economic prosperity uniformly the members of society .a. Buyers who value the product more than the equilibrium price will purchase the product; those who do not, will not purchase the product. In other words, the free market allocates the supply of a good to the buyers who value it most highly, as measured by their willingness to pay.b. Sellers whose costs are lower than the equilibrium price will produce the product; those whose costs are higher, will not produce the product. In other words, the free market allocates the demand for goods to the sellers who can produce it at the lowest cost.to the marginal buyer is greater than the cost to the marginal seller so total surplus would rise if output increases.b. At any quantity of output greater than the equilibrium quantity, the value of the product to the marginal buyer is less than the cost to the marginal seller so total surplus would rise if output decreases.3. Note that this is one of the reasons that economists believe Principle #6: Markets are usually a good way to organize economic activity.It would be a good idea to remind students that there are circumstances whenthe market process does not lead to the most efficient outcome. Examplesinclude situations such as when a firm (or buyer) has market power over priceor when there are externalities present. These situations will be discussed inlater chapters.Pretty Woman, Chapter 6. Vivien (Julia Roberts) and Edward (Richard Gere)negotiate a price. Afterward, Vivien reveals she would have accepted a lowerprice, while Edward admits he would have paid more. If you have done a goodjob of introducing consumer and producer surplus, you will see the light bulbsgo off above your students’ heads as they watch this clip.C. In the News: Ticket Scalping1. Ticket scalping is an example of how markets work to achieve an efficient outcome.2. This article from The Boston Globe de scribes economist Chip Case’s experience with ticket scalping.D. Case Study: Should There Be a Market in Organs?1. As a matter of public policy, people are not allowed to sell their organs.a. In essence, this means that there is a price ceiling on organs of $0.b. This has led to a shortage of organs.2. The creation of a market for organs would lead to a more efficient allocation of resources, but critics worry about the equity of a market system for organs.V. Market Efficiency and Market FailureA. To conclude that markets are efficient, we made several assumptions about how markets worked.1. Perfectly competitive markets.2. No externalities.B. When these assumptions do not hold, the market equilibrium may not be efficient.C. When markets fail, public policy can potentially remedy the situation. SOLUTIONS TO TEXT PROBLEMS:Quick Quizzes1. Figure 1 shows the demand curve for turkey. The price of turkey is P1 and the consumer surplus that results from that price is denoted CS. Consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it. It measures the benefit to buyers of participating in a market.Figure 1 Figure 22. Figure 2 shows the supply curve for turkey. The price of turkey is P1 and the producer surplus that results from that price is denoted PS. Producer surplus is the amount sellers are paid for a good minus the sellers’ cost of providing it (measured by the supply curve). It measures the benefit to sellers of participating in a market.Figure 33. Figure 3 shows the supply and demand for turkey. The price of turkey is P1, consumer surplus is CS, and producer surplus is PS. Producing more turkeys than the equilibrium quantity would lower total surplus because the value to the marginal buyer would be lower than the cost to the marginal seller on those additional units.Questions for Review1. The price a buyer is willing to pay, consumer surplus, and the demand curve are all closely related. The height of the demand curve represents the willingness to pay of the buyers. Consumer surplus is the area below the demand curve and above the price, which equals the price that each buyer is willing to pay minus the price actually paid.2. Sellers' costs, producer surplus, and the supply curve are all closely related. The height of the supply curve represents the costs of the sellers. Producer surplus is the area below the price and above the supply curve, which equals the price received minus each seller's costs of producing the good.Figure 43. Figure 4 shows producer and consumer surplus in a supply-and-demand diagram.4. An allocation of resources is efficient if it maximizes total surplus, the sum of consumer surplus and producer surplus. But efficiency may not be the only goal of economic policymakers; they may also be concerned about equity the fairness of the distribution of well-being.5. The invisible hand of the marketplace guides the self-interest of buyers and sellers into promoting general economic well-being. Despite decentralized decision making and self-interested decision makers, free markets often lead to an efficient outcome.6. Two types of market failure are market power and externalities. Market power may cause market outcomes to be inefficient because firms may cause price and quantity to differ from the levels they would be under perfect competition, which keeps total surplus from being maximized. Externalities are side effects that are not taken into account by buyers and sellers. As a result, the free market does not maximize total surplus.Problems and Applications1. a. Consumer surplus is equal to willingness to pay minus the price paid. Therefore, Melissa’s willingness to pay must be $200 ($120 + $80).b. Her consumer surplus at a price of $90 would be $200 ? $90 = $110.c. If the price of an iPod was $250, Melissa would not have purchased one because the price is greater than her willingness to pay. Therefore, she would receive no consumer surplus.2. If an early freeze in California sours the lemon crop, the supply curve for lemons shifts to the left, as shown in Figure 5. The result is a rise in the price of lemons and a decline in consumer surplus from A + B + C to just A. So consumer surplus declines by the amount B + C.Figure 5 Figure 6In the market for lemonade, the higher cost of lemons reduces the supply of lemonade, as shown in Figure 6. The result is a rise in the price of lemonade and a decline in consumer surplus from D + E + F to just D, a loss of E + F. Note that an event that affects consumer surplus in one market often has effects on consumer surplus in other markets.3. A rise in the demand for French bread leads to an increase in producer surplus in the market for French bread, as shown in Figure 7. The shift of the demand curve leads to an increased price, which increases producer surplus from area A to area A + B + C.Figure 7The increased quantity of French bread being sold increases the demand for flour, as shown in Figure 8. As a result, the price of flour rises, increasing producer surplus from area Dto D + E + F. Note that an event that affects producer surplus in one market leads to effects on producer surplus in related markets.Figure 84. a.Figure 9b. When the price of a bottle of water is $4, Bert buys two bottles of water. His consumer surplus is shown as area A in the figure. He values his first bottle of water at $7, but pays only $4 for it, so has consumer surplus of $3. He values his second bottle of water at $5, but pays only $4for it, so has consumer surplus of $1. Thus Bert’s total consumer surplus is $3 + $1 = $4, which is the area of A in the figure.c. When the price of a bottle of water falls from $4 to $2, Bert buys three bottles of water, an increase of one. His consumer surplus consists of both areas A and B in the figure, an increase in the amount of area B. He gets consumer surplus of $5 from the first bottle ($7 value minus $2 price), $3 from the second bottle ($5 value minus $2 price), and $1 from the third bottle ($3 value minus $2 price), for a total consumer surplus of $9. Thus consumer surplus rises by $5 (which is the size of area B) when the price of a bottle of water falls from $4 to $2.5. a.Figure 10b. When the price of a bottle of water is $4, Ernie sells two bottles of water. His producer surplus is shown as area A in the figure. He receives $4 for his first bottle of water, but it costs only $1 to produce, so Ernie has producer surplus of $3. He also receives $4 for his second bottle of water, which costs $3 to produce, so he has producer surplus of $1. Thus Ernie’s total producer surplus is $3 + $1 = $4, which is the area of A in the figure.c. When the price of a bottle of water rises from $4 to $6, Ernie sells three bottles of water, an increase of one. His producer surplus consists of both areas A and B in the figure, an increase by the amount of area B. He gets producer surplus of $5 from the first bottle ($6 price minus $1 cost), $3 from the second bottle ($6 price minus $3 cost), and $1 from the third bottle ($6 price minus $5 price), for a total producer surplus of $9. Thus producer surplus rises by $5 (which is the size of area B) when the price of a bottle of water rises from $4 to $6.6. a. From Ernie’s supply schedule and Bert’s demand schedule, the quantityequilibrium quantity of two.b. At a price of $4, consumer surplus is $4 and producer surplus is $4, as shown in Problems 3 and 4 above. Total surplus is $4 + $4 = $8.c. If Ernie produced one less bottle, his producer surplus would decline to $3, as shown in Problem 4 above. If Bert consumed one less bottle, his consumer surplus would decline to $3, as shown in Problem 3 above. So total surplus would decline to $3 + $3 = $6.d. If Ernie produced one additional bottle of water, his cost would be $5, but the price is only $4, so his producer surplus would decline by $1. If Bert consumed one additional bottle of water, his value would be $3, but the price is $4, so his consumer surplus would decline by $1. So total surplus declines by $1 + $1 = $2.7. a. The effect of falling production costs in the market for stereos results in a shift to the right in the supply curve, as shown in Figure 11. As a result, the equilibrium price of stereos declines and the equilibrium quantity increases.Figure 11b. The decline in the price of stereos increases consumer surplus from area A to A + B + C + D, an increase in the amount B + C + D. Prior to the shift in supply, producer surplus was areas B + E (the area above the supply curve and below the price). After the shift in supply, producer surplus is areas E + F + G. So producer surplus changes by the amount F + G – B, which may be positive or negative. The increase in quantity increases producer surplus, while the decline in the price reduces producer surplus. Because consumer surplus rises by B + C + D and producer surplus rises by F + G – B, total surplus rises by C + D + F + G.c. If the supply of stereos is very elastic, then the shift of the supply curve benefits consumers most. To take the most dramatic case, suppose the supply curve were horizontal, as shown in Figure 12. Then there is no producer surplus at all. Consumers capture all the benefits of falling production costs, with consumer surplus rising from area A to area A + B.Figure 128. Figure 13 shows supply and demand curves for haircuts. Supply equals demand at a quantity of three haircuts and a price between $4 and $5. Firms A, C, and D should cut the hair of Ellen, Jerry, and Phil. Oprah’s willingness to pay is too low and firm B’s costs are too high, so they do not participate. The maximum total surplus is the area between the demand and supply curves, which totals $11 ($8 value minus $2 cost for the first haircut, plus $7 value minus $3 cost for the second, plus $5 value minus $4 cost for the third).Figure 139. a. The effect of falling production costs in the market for computers results in a shift to the right in the supply curve, as shown in Figure 14. As a result, the equilibrium price of computers declines and the equilibrium quantity increases. The decline in the price of computers increases consumer surplus from area A to A + B + C + D, an increase in the amount B + C + D.Figure 14 Figure 15Prior to the shift in supply, producer surplus was areas B + E (the area above thesupply curve and below the price). After the shift in supply, producer surplus isareas E + F + G. So producer surplus changes by the amount F + G – B, whichmay be positive or negative. The increase in quantity increases producer surplus,while the decline in the price reduces producer surplus. Because consumer surplusrises by B + C + D and producer surplus rises by F + G – B, total surplus rises byC +D + F + G.b. Because typewriters are substitutes for computers, the decline in the price of computers means that people substitute computers for typewriters, shifting the demand for typewriters to the left, as shown in Figure 15. The result is a decline in both the equilibrium price and equilibrium quantity of typewriters. Consumer surplus in the typewriter market changes from area A + B to A + C, a net change of C – B. Producer surplus changes from area C + D + E to area E, a net loss of C + D. Typewriter producers are sad about technological advances in computers because their producer surplus declines.c. Because software and computers are complements, the decline in the price and increase in the quantity of computers means that the demand for software increases, shifting the demand for software to the right, as shown in Figure 16. The result is an increase in both the price and quantity of software. Consumer surplus in the software market changes from B + C to A + B, anet change of A – C. Producer surplus changes from E to C + D + E, an increase of C + D, so software producers should be happy about the technological progress in computers.Figure 16d. Yes, this analysis helps explain why Bill Gates is one the world’s richest people, because his company produces a lot of software that is a complement with computers and there has been tremendous technological advance in computers.10. a. With Provider A, the cost of an extra minute is $0. With Provider B, the cost of anextra minute is $1.b. With Provider A, my friend will purchase 150 minutes [= 150 – (50)(0)]. WithProvider B, my friend would purchase 100 minutes [= 150 – (50)(1)].c. With Provider A, he would pay $120. The cost would be $100 with Provider B.Figure 17d. Figure 17 shows the friend’s demand. With Provider A, he buys 150 minutes andhis consumer surplus is equal to (1/2)(3)(150) – 120 = 105. With Provider B, hisconsumer surplus is equal to (1/2)(2)(100) = 100.e. I would recommend Provider A because he receives greater consumer surplus.11. a. Figure 18 illustrates the demand for medical care. If each procedure has a price of $100, quantity demanded will be Q1 procedures.Figure 18b. If consumers pay only $20 per procedure, the quantity demanded will be Q2 procedures. Because the cost to society is $100, the number of procedures performed is too large to maximize total surplus. The quantity that maximizes total surplus is Q1 procedures, which is less than Q2.c. The use of medical care is excessive in the sense that consumers get procedures whose value is less than the cost of producing them. As a result, the economy’s total surplus is reduced.d. To prevent this excessive use, the consumer must bear the marginal cost of the procedure. But this would require eliminating insurance. Another possibility would be that the insurance company, which pays most of the marginal cost of the procedure ($80, in this case) could decide whether the procedure should be performed. But the insurance company does not get the benefits of the procedure, so its decisions may not reflect the value to the consumer.。
曼昆微观经济学英文版课后练习题第一章知识交流
Chapter 1Ten Principles of EconomicsMultiple Choice1. The word that comes from the Greek word for "one who manages a household" isa. market.b. consumer.c. producer.d. economy.ANS: D DIF: 1 REF: 1-0TOP: Economy MSC: Definitional2. The word “economy” comes from the Greek word oikonomos, which meansa. “environment.”b. “production.”c. “one who manages a household.”d. “one who makes decisions.”ANS: C DIF: 1 REF: 1-0TOP: Economy MSC: Definitional3. Resources area. 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: 1-0TOP: Resources, Scarcity MSC: Interpretive4. Economics deals primarily with the concept ofa. scarcity.b. poverty.c. change.d. power.ANS: A DIF: 1 REF: 1-0TOP: Scarcity MSC: Definitional5. 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: 1-0TOP: Economies MSC: Interpretive6. The overriding reason as to why households and societies face many decisions is thata. 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: 1-0TOP: Scarcity MSC: Interpretive7. The phenomenon of scarcity stems from the fact thata. 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: 1-0TOP: Scarcity MSC: Interpretive8. Approximately what percentage of the world's economies experience scarcity?a. 25%b. 50%c. 75%d. 100%ANS: D DIF: 1 REF: 1-0TOP: Scarcity MSC: Interpretive9. When a society cannot produce all the goods and services people wish to have, it is said that the economy isexperiencinga. scarcity.b. shortages.c. inefficiencies.d. inequities.ANS: A DIF: 2 REF: 1-0TOP: Scarcity MSC: Interpretive10. For society, a good is not scarce ifa. 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: 1-0TOP: Scarcity MSC: Interpretive11. Which of the following products would be considered scarce?a. golf clubsb. Picasso paintingsc. applesd. All of the above are correct.ANS: D DIF: 2 REF: 1-0TOP: Scarcity MSC: Interpretive12. Economics is the study ofa. 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: 1-0TOP: Economies, Scarcity MSC: Definitional13. Economics is the study ofa. 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: 1-0TOP: Economies, Scarcity MSC: Definitional14. In most societies, resources are allocated bya. 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: 1-0TOP: Resource allocation MSC: Interpretive15. The adage, "There is no such thing as a free lunch," is used to illustrate the principle thata. goods are scarce.b. people face tradeoffs.c. income must be earned.d. households face many decisions.ANS: B DIF: 2 REF: 1-1TOP: Tradeoffs MSC: Interpretive16. The adage, "There is no such thing as a free lunch," meansa. 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: 1-1TOP: Tradeoffs MSC: Definitional17. Economists use the phrase "There is no such thing as a free lunch," to illustrate the principle thata. 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: 1-1TOP: Tradeoffs MSC: Interpretive18. Which of the following statements best represents the principle represented by the adage, "There is no such thing asa 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: 1-1TOP: Tradeoffs MSC: Applicative19. The principle that "people face tradeoffs" applies toa. individuals.b. families.c. societies.d. All of the above are correct.ANS: D DIF: 1 REF: 1-1TOP: Tradeoffs MSC: Applicative20. A typical society strives to get the most it can from its scarce resources. At the same time, the society attempts todistribute the benefits of those resources to the members of the society in a fair manner. In other words, the society faces a tradeoff betweena. guns and butter.b. efficiency and equity.c. inflation and unemployment.d. work and leisure.ANS: B DIF: 1 REF: 1-1TOP: Efficiency, Equity MSC: Interpretive21. Guns and butter are used to represent the classic societal tradeoff between spending ona. durable and nondurable goods.b. imports and exports.c. national defense and consumer goods.d. law enforcement and agriculture.ANS: C DIF: 1 REF: 1-1TOP: Tradeoffs MSC: Interpretive22. When society requires that firms reduce pollution, there isa. 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: 1-1TOP: Tradeoffs MSC: Applicative23. A tradeoff exists between a clean environment and a higher level of income in thata. 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: 1-1TOP: Tradeoffs MSC: Applicative24. Which of the following phrases best captures the notion of efficiency?a. absolute fairnessb. equal distributionc. minimum wasted. equitable outcomeANS: C DIF: 1 REF: 1-1TOP: Efficiency MSC: Interpretive25. 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: 1-1TOP: Efficiency, Equity MSC: Interpretive26. Efficiency means thata. 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: 1-1TOP: Efficiency MSC: Definitional27. Economists use the word equity to describe a situation in whicha. 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: 1-1TOP: Equity MSC: Interpretive28. Senator Smith wants to increase taxes on people with high incomes and use the money to help the poor. Senator Jonesargues that such a tax will discourage successful people from working and will therefore make society worse off. An economist would say thata. 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: 1-1TOP: Efficiency, Equity MSC: Applicative29. Which of the following words and phrases best captures the notion of equity?a. minimum wasteb. maximum benefitc. samenessd. fairnessANS: D DIF: 1 REF: 1-1TOP: Equity MSC: Definitional30. When government policies are enacted,a. equity can usually be enhanced without an efficiency loss, but efficiency can never be enhanced without anequity loss.b. efficiency can usually be enhanced without an equity loss, but equity can never be enhanced without anefficiency loss.c. it is always the case that either efficiency and fairness are both enhanced, or efficiency and equity are bothdiminished.d. None of the above are correct.ANS: D DIF: 2 REF: 1-1TOP: Government, Efficiency, Equity MSC: Applicative31. A likely effect of government policies that redistribute income and wealth from the wealthy to the poor is that thosepoliciesa. enhance equity.b. reduce efficiency.c. reduce the reward for working hard.d. All of the above are correct.ANS: D DIF: 2 REF: 1-1TOP: Government, Efficiency, Equity MSC: Interpretive32. When the government implements programs such as progressive income tax rates, which of the following is likely tooccur?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: 1-1TOP: Government, Efficiency, Equity MSC: Interpretive33. 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 piefor everyone.ANS: C DIF: 3 REF: 1-1TOP: Government, Efficiency, Equity MSC: Analytical34. When the government attempts to improve equity in an economy the result is oftena. 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: 1-1TOP: Government, Efficiency, Equity MSC: Interpretive35. 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: 1-1TOP: Government, Efficiency, Equity MSC: Interpretive36. In economics, the cost of something isa. 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: 1-1TOP: Opportunity cost MSC: Definitional37. What you give up to obtain an item is called youra. opportunity cost.b. explicit cost.c. true cost.d. direct cost.ANS: A DIF: 1 REF: 1-1TOP: Opportunity cost MSC: Definitional38. The opportunity cost of going to college isa. 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: 1-1TOP: Opportunity cost MSC: Interpretive39. Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to fourchoices: 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 isa. 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: 1-1TOP: Opportunity cost MSC: Applicative40. A furniture maker currently produces 100 tables per week and sells them for a profit. She is considering expandingher 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 sellingmore tables.d. It depends on the average cost of producing more tables and the average revenue she will earn from selling moretables.ANS: C DIF: 2 REF: 1-1TOP: Marginal changes MSC: Applicative41. For most students, the largest single cost of a college education isa. 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: 1-1TOP: Opportunity cost MSC: Interpretive42. For a college student who wishes to calculate the true costs of going to college, the costs of room and boarda. 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: 1-1TOP: Opportunity cost MSC: Applicative43. For which of the following individuals would the opportunity cost of going to college be highest?a. a promising young mathematician who will command a high salary once she earns her college degreeb. a student with average grades who has never held a jobc. a famous, highly-paid actor who wants to take time away from show business to finish college and earn a degreed. a student who is the best player on his college basketball team, but who lacks the skills necessary to playprofessional basketballANS: C DIF: 2 REF: 1-1TOP: Opportunity cost MSC: Applicative44. When you calculate your true costs of going to college, what portion of your room-and-board expenses should beincluded?a. Your full room-and-board expenses should always be included.b. None of your room-and-board expenses should ever be included.c. You should include only the amount by which your room-and-board expenses exceed the income you earn whileattending college.d. You should include only the amount by which your room-and-board expenses exceed the expenses for rent andfood if you were not in college.ANS: D DIF: 2 REF: 1-1TOP: Opportunity cost MSC: Applicative45. The opportunity cost of an item isa. the number of hours needed to earn money to buy the item.b. what you give up to get that item.c. usually less than the dollar value of the item.d. the dollar value of the item.ANS: B DIF: 1 REF: 1-1TOP: Opportunity cost MSC: Definitional46. Mallory decides to spend three hours working overtime rather than watching a video with her friends. She earns $8 anhour. Her opportunity cost of working isa. the $24 she earns working.b. the $24 minus the enjoyment she would have received from watching the video.c. the enjoyment she would have received had she watched the video.d. nothing, since she would have received less than $24 of enjoyment from the video.ANS: C DIF: 3 REF: 1-1TOP: Opportunity cost MSC: Applicative47. Russell spends an hour studying instead of playing tennis. The opportunity cost to him of studying isa. the improvement in his grades from studying for the hour.b. the improvement in his grades from studying minus the enjoyment of playing tennis.c. the enjoyment and exercise he would have received had he played tennis.d. zero. Since Russell chose to study rather than to play tennis, the value of studying must have been greater than thevalue of playing tennis.ANS: C DIF: 3 REF: 1-1TOP: Opportunity cost MSC: Applicative48. College-age athletes who drop out of college to play professional sportsa. are not rational decision makers.b. are well aware that their opportunity cost of attending college is very high.c. are concerned more about present circumstances than their future.d. underestimate the value of a college education.ANS: B DIF: 2 REF: 1-1TOP: Opportunity cost MSC: Interpretive49. A rational decisionmakera. ignores marginal changes and focuses instead on “the big picture.”b. ignores the likely effects of government policies when he or she makes choices.c. takes an action only if the marginal benefit of that action exceeds the marginal cost of that action.d. takes an action only if the combined benefits of that action and previous actions exceed the combined costs of thataction and previous actions.ANS: C DIF: 2 REF: 1-1TOP: Marginal changes MSC: Interpretive50. Rational people make decisions at the margin bya. following marginal traditions.b. behaving in a random fashion.c. thinking in black-and-white terms.d. comparing marginal costs and marginal benefits.ANS: D DIF: 1 REF: 1-1TOP: Marginal changes MSC: Interpretive51. The word "margin" meansa. edge.b. distance.c. space.d. measure.ANS: A DIF: 1 REF: 1-1TOP: Marginal changes MSC: Definitional52. Making rational decisions "at the margin" means that peoplea. make those decisions that do not impose a marginal cost.b. evaluate how easily a decision can be reversed if problems arise.c. compare the marginal costs and marginal benefits of each decision.d. always calculate the marginal dollar costs for each decision.ANS: C DIF: 2 REF: 1-1TOP: Marginal changes MSC: Interpretive53. A person’s willingness to pay for a good is based ona. the availability of the good.b. the marginal benefit that an extra unit of the good would provide for that person.c. the marginal cost of producing an extra unit of the good.d. esoteric factors, the study of which lies beyond the boundaries of economics.ANS: B DIF: 2 REF: 1-1TOP: Marginal changes MSC: Interpretive54. To say that "people respond to incentives" is to say thata. changes in costs (but not changes in benefits) influence people's decisions and their behavior.b. changes in benefits (but not changes in costs) influence people's decisions and their behavior.c. changes in benefits or changes in costs influence people's decisions and their behavior.d. tradeoffs can be eliminated by rational people who think at the margin.ANS: C DIF: 1 REF: 1-1TOP: Incentives MSC: Definitional55. A marginal change is aa. change that involves little, if anything, that is important.b. large, significant adjustment.c. change for the worse, and so it is usually a short-term change.d. small, incremental adjustment.ANS: D DIF: 1 REF: 1-1TOP: Marginal changes MSC: Definitional56. Which of the following is the best example of a marginal change?a. After graduating college, Audrey's income increases from $500 per month to $3,000 per month.b. Morgan gets a raise at her part-time job and is now paid $7.25 per hour instead of $7.00.c. Housing prices in an area increase by 40 percent when a new interstate is built that passes nearby.d. A hard freeze wipes out half of the orange crop in Florida and the price of orange juice doubles.ANS: B DIF: 2 REF: 1-1TOP: Marginal changes MSC: Applicative57. Which of the following is the best example of a marginal change?a. The price of housing in Denver increased by 6 percent last year.b. Kim gets a big promotion at work. She also gets a raise from $35,000 per year to $55,000 per year.c. Mark graduates from college and takes a job. His income increases from $10,000 per year to $35,000 per year.d. A drought hits the upper Midwest and the price of wheat increases from $4.00 per bushel to $6.50 per bushel. ANS: A DIF: 2 REF: 1-1TOP: Marginal changes MSC: Applicative58. A marginal change is best illustrated by which of the following?a. Nancy retires and takes a part-time job. She was working 40 hours per week and now works 15 hours per week.b. A large, state-supported university has announced that due to state budget deficits, tuition must rise by 20 percentnext year.c. Ryan moved to a new apartment and now pays 40 percent more rent than before.d. Arizona, which usually receives 10 inches of rain per year, received 11 inches last year.ANS: D DIF: 2 REF: 1-1TOP: Marginal changes MSC: Interpretive59. Teresa eats three oranges during a particular day. The marginal benefit she enjoys from eating the third orangea. can be thought of as the total benefit Teresa enjoys by eating three oranges minus the total benefit she would haveenjoyed by eating just the first two oranges.b. determines Teresa’s willingness to pa y for the first, second, and third oranges.c. does not depend on how many oranges Teresa has already eaten.d. All of the above are correct.ANS: A DIF: 3 REF: 1-1TOP: Marginal changes MSC: Applicative60. A rational decisionmaker takes an action if and only ifa. the marginal benefit of the action exceeds the marginal cost of the action.b. the marginal cost of the action exceeds the marginal benefit of the action.c. the marginal cost of the action is zero.d. the opportunity cost of the action is zero.ANS: A DIF: 1 REF: 1-1TOP: Marginal changes MSC: Interpretive61. After much consideration, you have chosen Cancun over Ft. Lauderdale as your Spring Break destination this year.However, Spring Break is still months away, and you may reverse this decision. Which of the following events would prompt you to reverse this decision?a. The marginal benefit of going to Cancun increases.b. The marginal cost of going to Cancun decreases.c. The marginal benefit of going to Ft. Lauderdale decreases.d. The marginal cost of going to Ft. Lauderdale decreases.ANS: D DIF: 3 REF: 1-1TOP: Marginal changes MSC: Applicative62. The average cost per seat on the 50-passenger Floating-On-Air Bus company's trip from Kansas City to St. Louis, onwhich no refreshments are served, is $45. In advance of a particular trip, three seats remain unsold. The bus company could increase its profit only if ita. charged any ticket price above $0 for the three remaining seats.b. charged at least $15 for each of the three remaining seats.c. charged at least $45 for each of the three remaining seats.d. paid three people to occupy the three remaining seats.ANS: A DIF: 2 REF: 1-1TOP: Marginal cost MSC: Applicative63. Warren drinks four cups of coffee during a particular day. The marginal benefit he enjoys from drinking the fourthcupa. can be thought of as the total benefit Warren enjoys by drinking four cups minus the total benefit he would haveenjoyed by drinking just three cups.b. determines Warren’s willingness to pay for the fourth cup.c. is likely different from the marginal benefit provided to Warren by the third cup.d. All of the above are correct.ANS: D DIF: 3 REF: 1-1TOP: Marginal changes MSC: Applicative64. A rational decision maker takes an action only if thea. marginal benefit is less than the marginal cost.b. marginal benefit is greater than the marginal cost.c. average benefit is greater than the average cost.d. marginal benefit is greater than both the average cost and the marginal cost.ANS: B DIF: 2 REF: 1-1TOP: Marginal changes MSC: Interpretive65. A construction company has built 50 houses so far this year at a total cost to the company of $8 million. If thecompany builds a 51st house, its total cost will increase to $8.18 million. Which of the following statements iscorrect?a. For the first 50 houses, the average cost per house was $160,000.b. The marginal cost of the 51st house, if it is built, will be $180,000.c. If the company can experience a marginal benefit of $190,000 by building the 51st house, then the companyshould build it.d. All of the above are correct.ANS: D DIF: 3 REF: 1-1TOP: Marginal cost, Marginal benefit MSC: Applicative66. Mike has spent $500 purchasing and repairing an old fishing boat, which he expects to sell for $800 once the repairsare complete. Mike discovers that, in addition to the $500 he has already spent, he needs to make an additional repair, which will cost another $400, in order to make the boat worth $800 to potential buyers. He can sell the boat as it is now for $300. What should he do?a. He should sell the boat as it is now for $300.b. He should keep the boat since it would not be rational to spend $900 on repairs and then sell the boat for $800.c. He should complete the repairs and sell the boat for $800.d. It does not matter which action he takes; the outcome is the same either way.ANS: C DIF: 3 REF: 1-1TOP: Marginal cost MSC: Analytical67. A donut shop sells fresh baked donuts from 5 a.m. until 3 p.m. every day. The shop does not sell day-old donuts, soall unsold donuts are thrown away at 3 p.m. each day. The cost of making and selling a dozen donuts is $1.50; there are no costs associated with throwing donuts away. If the manager has 10 dozen donuts left at 2:30 p.m. on aparticular day, which of the following alternatives is most attractive?a. Lower the price of the remaining donuts, even if the price falls below $1.50 per dozen.b. Lower the price of the remaining donuts, but under no circumstances should the price fall below $1.50 per dozen.c. Throw the donuts away and produce 10 fewer dozen donuts tomorrow.d. Starting tomorrow, lower the price on all donuts so they will all be sold earlier in the day.ANS: A DIF: 3 REF: 1-1TOP: Marginal changes MSC: Analytical。
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曼昆微观经济学英文版课后练习题第一章————————————————————————————————作者：————————————————————————————————日期：11Chapter 1Ten Principles of EconomicsMultiple Choice1. The word that comes from the Greek word for "one who manages a household" isa. market.b. consumer.c. producer.d. economy.ANS: D DIF: 1 REF: 1-0TOP: Economy MSC: Definitional2. The word “economy” comes from the Greek word oikonomos , which meansa. “environment.”b. “production.”c. “one who manages a household.”d. “one who makes decisions.”ANS: C DIF: 1 REF: 1-0TOP: Economy MSC: Definitional3. Resources area. 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: 1-0TOP: Resources, Scarcity MSC: Interpretive4. Economics deals primarily with the concept ofa. scarcity.b. poverty.c. change.d. power.ANS: A DIF: 1 REF: 1-0TOP: Scarcity MSC: Definitional5. 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: 1-0TOP: Economies MSC: Interpretive6. The overriding reason as to why households and societies face many decisions is thata. 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: 1-0TOP: Scarcity MSC: Interpretive7. The phenomenon of scarcity stems from the fact thata. 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: 1-0TOP: Scarcity MSC: Interpretive1 8. Approximately what percentage of the world's economies experience scarcity?a. 25%b. 50%c. 75%d. 100%ANS: D DIF: 1 REF: 1-0TOP: Scarcity MSC: Interpretive9. When a society cannot produce all the goods and services people wish to have, it is said that the economy isexperiencinga. scarcity.b. shortages.c. inefficiencies.d. inequities.ANS: A DIF: 2 REF: 1-0TOP: Scarcity MSC: Interpretive10. For society, a good is not scarce ifa. 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: 1-0TOP: Scarcity MSC: Interpretive11. Which of the following products would be considered scarce?a. golf clubsb. Picasso paintingsc. applesd. All of the above are correct.ANS: D DIF: 2 REF: 1-0TOP: Scarcity MSC: Interpretive12. Economics is the study ofa. 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: 1-0TOP: Economies, Scarcity MSC: Definitional13. Economics is the study ofa. 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: 1-0TOP: Economies, Scarcity MSC: Definitional14. In most societies, resources are allocated bya. 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: 1-0TOP: Resource allocation MSC: Interpretive1 15. The adage, "There is no such thing as a free lunch," is used to illustrate the principle thata. goods are scarce.b. people face tradeoffs.c. income must be earned.d. households face many decisions.ANS: B DIF: 2 REF: 1-1TOP: Tradeoffs MSC: Interpretive16. The adage, "There is no such thing as a free lunch," meansa. 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: 1-1TOP: Tradeoffs MSC: Definitional17. Economists use the phrase "There is no such thing as a free lunch," to illustrate the principle thata. 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: 1-1TOP: Tradeoffs MSC: Interpretive18. Which of the following statements best represents the principle represented by the adage, "There is no such thing asa 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: 1-1TOP: Tradeoffs MSC: Applicative19. The principle that "people face tradeoffs" applies toa. individuals.b. families.c. societies.d. All of the above are correct.ANS: D DIF: 1 REF: 1-1TOP: Tradeoffs MSC: Applicative20. A typical society strives to get the most it can from its scarce resources. At the same time, the society attempts todistribute the benefits of those resources to the members of the society in a fair manner. In other words, the society faces a tradeoff betweena. guns and butter.b. efficiency and equity.c. inflation and unemployment.d. work and leisure.ANS: B DIF: 1 REF: 1-1TOP: Efficiency, Equity MSC: Interpretive21. Guns and butter are used to represent the classic societal tradeoff between spending ona. durable and nondurable goods.b. imports and exports.c. national defense and consumer goods.d. law enforcement and agriculture.ANS: C DIF: 1 REF: 1-1TOP: Tradeoffs MSC: Interpretive1 22. When society requires that firms reduce pollution, there isa. 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: 1-1TOP: Tradeoffs MSC: Applicative23. A tradeoff exists between a clean environment and a higher level of income in thata. 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: 1-1TOP: Tradeoffs MSC: Applicative24. Which of the following phrases best captures the notion of efficiency?a. absolute fairnessb. equal distributionc. minimum wasted. equitable outcomeANS: C DIF: 1 REF: 1-1TOP: Efficiency MSC: Interpretive25. 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: 1-1TOP: Efficiency, Equity MSC: Interpretive26. Efficiency means thata. 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: 1-1TOP: Efficiency MSC: Definitional27. Economists use the word equity to describe a situation in whicha. 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: 1-1TOP: Equity MSC: Interpretive28. Senator Smith wants to increase taxes on people with high incomes and use the money to help the poor. Senator Jonesargues that such a tax will discourage successful people from working and will therefore make society worse off. An economist would say thata. 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: 1-1TOP: Efficiency, Equity MSC: Applicative1 29. Which of the following words and phrases best captures the notion of equity ?a. minimum wasteb. maximum benefitc. samenessd. fairnessANS: D DIF: 1 REF: 1-1TOP: Equity MSC: Definitional30. When government policies are enacted,a. equity can usually be enhanced without an efficiency loss, but efficiency can never be enhanced without anequity loss.b. efficiency can usually be enhanced without an equity loss, but equity can never be enhanced without anefficiency loss.c. it is always the case that either efficiency and fairness are both enhanced, or efficiency and equity are bothdiminished.d. None of the above are correct.ANS: D DIF: 2 REF: 1-1TOP: Government, Efficiency, Equity MSC: Applicative31. A likely effect of government policies that redistribute income and wealth from the wealthy to the poor is that thosepoliciesa. enhance equity.b. reduce efficiency.c. reduce the reward for working hard.d. All of the above are correct.ANS: D DIF: 2 REF: 1-1TOP: Government, Efficiency, Equity MSC: Interpretive32. When the government implements programs such as progressive income tax rates, which of the following is likely tooccur?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: 1-1TOP: Government, Efficiency, Equity MSC: Interpretive33. 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 piefor everyone.ANS: C DIF: 3 REF: 1-1TOP: Government, Efficiency, Equity MSC: Analytical34. When the government attempts to improve equity in an economy the result is oftena. 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: 1-1TOP: Government, Efficiency, Equity MSC: Interpretive35. 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: 1-1TOP: Government, Efficiency, Equity MSC: Interpretive1 36. In economics, the cost of something isa. 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: 1-1TOP: Opportunity cost MSC: Definitional37. What you give up to obtain an item is called youra. opportunity cost.b. explicit cost.c. true cost.d. direct cost.ANS: A DIF: 1 REF: 1-1TOP: Opportunity cost MSC: Definitional38. The opportunity cost of going to college isa. 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: 1-1TOP: Opportunity cost MSC: Interpretive39. Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to fourchoices: 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 isa. 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: 1-1TOP: Opportunity cost MSC: Applicative40. A furniture maker currently produces 100 tables per week and sells them for a profit. She is considering expandingher 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 sellingmore tables.d. It depends on the average cost of producing more tables and the average revenue she will earn from selling moretables.ANS: C DIF: 2 REF: 1-1TOP: Marginal changes MSC: Applicative41. For most students, the largest single cost of a college education isa. 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: 1-1TOP: Opportunity cost MSC: Interpretive42. For a college student who wishes to calculate the true costs of going to college, the costs of room and boarda. 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: 1-1TOP: Opportunity cost MSC: Applicative1 43. For which of the following individuals would the opportunity cost of going to college be highest?a. a promising young mathematician who will command a high salary once she earns her college degreeb. a student with average grades who has never held a jobc. a famous, highly-paid actor who wants to take time away from show business to finish college and earn a degreed. a student who is the best player on his college basketball team, but who lacks the skills necessary to playprofessional basketballANS: C DIF: 2 REF: 1-1TOP: Opportunity cost MSC: Applicative44. When you calculate your true costs of going to college, what portion of your room-and-board expenses should beincluded?a. Your full room-and-board expenses should always be included.b. None of your room-and-board expenses should ever be included.c. You should include only the amount by which your room-and-board expenses exceed the income you earn whileattending college.d. You should include only the amount by which your room-and-board expenses exceed the expenses for rent andfood if you were not in college.ANS: D DIF: 2 REF: 1-1TOP: Opportunity cost MSC: Applicative45. The opportunity cost of an item isa. the number of hours needed to earn money to buy the item.b. what you give up to get that item.c. usually less than the dollar value of the item.d. the dollar value of the item.ANS: B DIF: 1 REF: 1-1TOP: Opportunity cost MSC: Definitional46. Mallory decides to spend three hours working overtime rather than watching a video with her friends. She earns $8 anhour. Her opportunity cost of working isa. the $24 she earns working.b. the $24 minus the enjoyment she would have received from watching the video.c. the enjoyment she would have received had she watched the video.d. nothing, since she would have received less than $24 of enjoyment from the video.ANS: C DIF: 3 REF: 1-1TOP: Opportunity cost MSC: Applicative47. Russell spends an hour studying instead of playing tennis. The opportunity cost to him of studying isa. the improvement in his grades from studying for the hour.b. the improvement in his grades from studying minus the enjoyment of playing tennis.c. the enjoyment and exercise he would have received had he played tennis.d. zero. Since Russell chose to study rather than to play tennis, the value of studying must have been greater than thevalue of playing tennis.ANS: C DIF: 3 REF: 1-1TOP: Opportunity cost MSC: Applicative48. College-age athletes who drop out of college to play professional sportsa. are not rational decision makers.b. are well aware that their opportunity cost of attending college is very high.c. are concerned more about present circumstances than their future.d. underestimate the value of a college education.ANS: B DIF: 2 REF: 1-1TOP: Opportunity cost MSC: Interpretive1 49. A rational decisionmakera. ignores marginal changes and focuses instead on “the big picture.”b. ignores the likely effects of government policies when he or she makes choices.c. takes an action only if the marginal benefit of that action exceeds the marginal cost of that action.d. takes an action only if the combined benefits of that action and previous actions exceed the combined costs of thataction and previous actions.ANS: C DIF: 2 REF: 1-1TOP: Marginal changes MSC: Interpretive50. Rational people make decisions at the margin bya. following marginal traditions.b. behaving in a random fashion.c. thinking in black-and-white terms.d. comparing marginal costs and marginal benefits.ANS: D DIF: 1 REF: 1-1TOP: Marginal changes MSC: Interpretive51. The word "margin" meansa. edge.b. distance.c. space.d. measure.ANS: A DIF: 1 REF: 1-1TOP: Marginal changes MSC: Definitional52. Making rational decisions "at the margin" means that peoplea. make those decisions that do not impose a marginal cost.b. evaluate how easily a decision can be reversed if problems arise.c. compare the marginal costs and marginal benefits of each decision.d. always calculate the marginal dollar costs for each decision.ANS: C DIF: 2 REF: 1-1TOP: Marginal changes MSC: Interpretive53. A person’s willingness to pay for a good is based ona. the availability of the good.b. the marginal benefit that an extra unit of the good would provide for that person.c. the marginal cost of producing an extra unit of the good.d. esoteric factors, the study of which lies beyond the boundaries of economics.ANS: B DIF: 2 REF: 1-1TOP: Marginal changes MSC: Interpretive54. To say that "people respond to incentives" is to say thata. changes in costs (but not changes in benefits) influence people's decisions and their behavior.b. changes in benefits (but not changes in costs) influence people's decisions and their behavior.c. changes in benefits or changes in costs influence people's decisions and their behavior.d. tradeoffs can be eliminated by rational people who think at the margin.ANS: C DIF: 1 REF: 1-1TOP: Incentives MSC: Definitional55. A marginal change is aa. change that involves little, if anything, that is important.b. large, significant adjustment.c. change for the worse, and so it is usually a short-term change.d. small, incremental adjustment.ANS: D DIF: 1 REF: 1-1TOP: Marginal changes MSC: Definitional56. Which of the following is the best example of a marginal change?a. After graduating college, Audrey's income increases from $500 per month to $3,000 per month.b. Morgan gets a raise at her part-time job and is now paid $7.25 per hour instead of $7.00.c. Housing prices in an area increase by 40 percent when a new interstate is built that passes nearby.d. A hard freeze wipes out half of the orange crop in Florida and the price of orange juice doubles.ANS: B DIF: 2 REF: 1-1TOP: Marginal changes MSC: Applicative57. Which of the following is the best example of a marginal change?a. The price of housing in Denver increased by 6 percent last year.b. Kim gets a big promotion at work. She also gets a raise from $35,000 per year to $55,000 per year.c. Mark graduates from college and takes a job. His income increases from $10,000 per year to $35,000 per year.d. A drought hits the upper Midwest and the price of wheat increases from $4.00 per bushel to $6.50 per bushel. ANS: A DIF: 2 REF: 1-1TOP: Marginal changes MSC: Applicative58. A marginal change is best illustrated by which of the following?a. Nancy retires and takes a part-time job. She was working 40 hours per week and now works 15 hours per week.b. A large, state-supported university has announced that due to state budget deficits, tuition must rise by 20 percentnext year.c. Ryan moved to a new apartment and now pays 40 percent more rent than before.d. Arizona, which usually receives 10 inches of rain per year, received 11 inches last year.ANS: D DIF: 2 REF: 1-1TOP: Marginal changes MSC: Interpretive59. Teresa eats three oranges during a particular day. The marginal benefit she enjoys from eating the third orangea. can be thought of as the total benefit Teresa enjoys by eating three oranges minus the total benefit she would haveenjoyed by eating just the first two oranges.b. determines Teresa’s willingness to pay for the first, second, and third oranges.c. does not depend on how many oranges Teresa has already eaten.d. All of the above are correct.ANS: A DIF: 3 REF: 1-1TOP: Marginal changes MSC: Applicative60. A rational decisionmaker takes an action if and only ifa. the marginal benefit of the action exceeds the marginal cost of the action.b. the marginal cost of the action exceeds the marginal benefit of the action.c. the marginal cost of the action is zero.d. the opportunity cost of the action is zero.ANS: A DIF: 1 REF: 1-1TOP: Marginal changes MSC: Interpretive61. After much consideration, you have chosen Cancun over Ft. Lauderdale as your Spring Break destination this year.However, Spring Break is still months away, and you may reverse this decision. Which of the following events would prompt you to reverse this decision?a. The marginal benefit of going to Cancun increases.b. The marginal cost of going to Cancun decreases.c. The marginal benefit of going to Ft. Lauderdale decreases.d. The marginal cost of going to Ft. Lauderdale decreases.ANS: D DIF: 3 REF: 1-1TOP: Marginal changes MSC: Applicative62. The average cost per seat on the 50-passenger Floating-On-Air Bus company's trip from Kansas City to St. Louis, onwhich no refreshments are served, is $45. In advance of a particular trip, three seats remain unsold. The bus company could increase its profit only if ita. charged any ticket price above $0 for the three remaining seats.b. charged at least $15 for each of the three remaining seats.c. charged at least $45 for each of the three remaining seats.d. paid three people to occupy the three remaining seats.ANS: A DIF: 2 REF: 1-1TOP: Marginal cost MSC: Applicative63. Warren drinks four cups of coffee during a particular day. The marginal benefit he enjoys from drinking the fourthcupa. can be thought of as the total benefit Warren enjoys by drinking four cups minus the total benefit he would haveenjoyed by drinking just three cups.b. determines Warren’s willingness to pay for the fourth cup.c. is likely different from the marginal benefit provided to Warren by the third cup.d. All of the above are correct.ANS: D DIF: 3 REF: 1-1TOP: Marginal changes MSC: Applicative64. A rational decision maker takes an action only if thea. marginal benefit is less than the marginal cost.b. marginal benefit is greater than the marginal cost.c. average benefit is greater than the average cost.d. marginal benefit is greater than both the average cost and the marginal cost.ANS: B DIF: 2 REF: 1-1TOP: Marginal changes MSC: Interpretive65. A construction company has built 50 houses so far this year at a total cost to the company of $8 million. If thecompany builds a 51st house, its total cost will increase to $8.18 million. Which of the following statements iscorrect?a. For the first 50 houses, the average cost per house was $160,000.b. The marginal cost of the 51st house, if it is built, will be $180,000.c. If the company can experience a marginal benefit of $190,000 by building the 51st house, then the companyshould build it.d. All of the above are correct.ANS: D DIF: 3 REF: 1-1TOP: Marginal cost, Marginal benefit MSC: Applicative66. Mike has spent $500 purchasing and repairing an old fishing boat, which he expects to sell for $800 once the repairsare complete. Mike discovers that, in addition to the $500 he has already spent, he needs to make an additional repair, which will cost another $400, in order to make the boat worth $800 to potential buyers. He can sell the boat as it is now for $300. What should he do?a. He should sell the boat as it is now for $300.b. He should keep the boat since it would not be rational to spend $900 on repairs and then sell the boat for $800.c. He should complete the repairs and sell the boat for $800.d. It does not matter which action he takes; the outcome is the same either way.ANS: C DIF: 3 REF: 1-1TOP: Marginal cost MSC: Analytical67. A donut shop sells fresh baked donuts from 5 a.m. until 3 p.m. every day. The shop does not sell day-old donuts, soall unsold donuts are thrown away at 3 p.m. each day. The cost of making and selling a dozen donuts is $1.50; there are no costs associated with throwing donuts away. If the manager has 10 dozen donuts left at 2:30 p.m. on aparticular day, which of the following alternatives is most attractive?a. Lower the price of the remaining donuts, even if the price falls below $1.50 per dozen.b. Lower the price of the remaining donuts, but under no circumstances should the price fall below $1.50 per dozen.c. Throw the donuts away and produce 10 fewer dozen donuts tomorrow.d. Starting tomorrow, lower the price on all donuts so they will all be sold earlier in the day.ANS: A DIF: 3 REF: 1-1TOP: Marginal changes MSC: Analytical68. Stan buys a 1966 Mustang for $2,000, planning to restore and sell the car. He goes on to spend $8,000 restoring thecar. At this point he can sell the car for $9,000. As an alternative, he can spend an additional $3,000 replacing the engine. With a new engine the car would sell for $12,000. Stan shoulda. complete the repairs and sell the car for $12,000.b. sell the car now for $9, 000.c. never try such an expensive project again.d. be indifferent between (i) selling the car now and (ii) replacing the engine and then selling it.ANS: D DIF: 3 REF: 1-1TOP: Marginal cost MSC: Analytical。