微观经济学模拟题分析解析

Microeconomics Final Test 2010I. Multiple Choice (1 points per each. In total 40 points)Identify the letter of the choice that best completes the statement or answers the question.__A__1. Which of the following will change a nation's comparative advantage?A. a technological advance in producing manufactured goodsB. a doubling of all wagesC. quotas on importsD. a change in consumers' preferences for imported goods影响比较优势的因素：气候和自然资源；劳动力和资本的相对充裕；技术；外部经济__D__ 2. If Japan can produce each unit of steel using fewer resources than Canada does,A. Canada has an absolute advantage in steel production.B. Japan has an absolute advantage in steel production.C. Japan has a comparative advantage in steel production.D. Canada has a comparative advantage in steel production.绝对优势：数量比较优势：机会成本__B__ 3. Suppose you are considering going to the movies, and you place a $12 value on your anticipated enjoyment of the movie. The ticket price is $6 and you would be giving up two hours of work, where you earn $5 per hour. You would go toA. work; the opportunity cost of the movies exceeds the expected benefit.B. the movies; your incentive is the $6 excess expected benefit.C. the movies; your enjoyment will exceed the lost wages by $2.D. the movies; the benefit of $18 exceeds the lost wages.__D__ 4. The amount of a good or service that buyers would be willing and able to purchase at a specific price is known asA. quantity demanded.B. demand.C. supply.D. quantity supplied.__C__ 5. Which of the following are the best examples of substitute goods?a. personal computers and computer software programsb. milk and cookiesc. IBM and Gateway personal computersd. hot dogs and mustard__B__6. If the decline of Good A’s price leads the demand curve of Good B moving to the right,A. Good A and Good B are substitutes.B. Good A and Good B are complements.C. Good A is an inferior good, Good B is a luxury good.D. Good A is a luxury good, Good B is an inferior good.____ 7. If price elasticity of demand is 2.0, this implies that consumers wouldA. buy twice as much of the good if price falls by 10 percent.B. require a 2 percent cut in price to raise quantity demanded of the good by 1 percent.C. buy 2 percent more of the good in response to a 1 percent cut in price.D. require at least a $2 increase in price before showing any response to the price increase.____ 8. If Weiskamp T-Shirt Co. lowers its price from $6 to $5 and finds that students increasetheir quantity demanded from 400 to 600 T-shirts, then the demand for Weiskamp T-shirts withinthis price range isA. price inelastic.B. price elastic.C. unit elastic.D. cross elastic.____ 9. A 5 percent increase in the price of sugar reduces sugar consumption by about 10 percent.The increase causes households toA. spend more on sugar.B. spend less on sugar.C. spend the same amount on sugar.D. consume more goods like coffee and tea that are complements of sugar.____ 10. In which of the markets listed below would you expect the least elastic response fromsuppliers?A. fast foodB. soft drinkC. road buildingD. Picasso paintings____ 11. If the price of Good A decreases from $10 to $9 and its quantity demanded increases 100,its price elasticity of demand isA. inelastic.B. elastic.C. unit-elastic.D. unclear.___ 12. If the equilibrium price of bread is $2 and the government imposes a $1.50 price ceilingon the price of bread,A. more bread will be produced to meet the increased demand.B. there will be a shortage of bread.C. the demand for bread will decrease because suppliers will reduce their supply.D. a surplus of bread will emerge.____13. Rent controls typically end upA. increasing rents received by landlords.B. raising property values.C. encouraging landlords to overspend for maintenance.D. discouraging new housing construction. 3____ 14. Assume that the government sets a ceiling on the interest rate that banks charge on loans.If the ceiling is set below the market equilibrium interest rate, the result will beA. a surplus of credit.B. a shortage of credit.C. greater profits for banks issuing credit.D. a perfectly inelastic supply of credit in the market place.____ 15. Which of the following best explains the source of consumer surplus for good A?A. Many consumers would be willing to pay more than the market price for good A.B. Many consumers pay prices that are greater than the equilibrium price of good A.C. Many consumers think the market price of good A is greater than its cost.D. Many consumers think the price elasticity of demand for good A is unit elastic.____ 16. If you had been willing to pay $2.19 for the gallon of milk purchased at the supermarketbut were required to pay only $1.89, you have gainedA. a refund of $.30 from the clerk.B. a consumer surplus amounting to $.30.C. excess marginal benefit of $2.19.D. producer surplus of $.30.____17. If demand increases when supply is perfectly elastic, thenA. consumer surplus will remain the same.B. consumer surplus will increase.C. it is not possible to predict the change in consumer surplus.D. consumer surplus will decrease with the increase in price.____ 18. Producer surplus tends to be large whenA. supply is elastic.B. demand is elastic.C. supply is inelastic.D. demand is inelastic.____ 19. Which of the following is an example of a positive externality?A. air pollutionB. a person who litters in a public parkC. a consumer whose dream comes true when she buys a new convertibleD. a nice garden in front of your neighbor's house____ 20. Deadweight lossA. means that there is a loss to some individuals without a corresponding gain to others.B. is not really a loss to society because what one individual loses another individual gains.C. can be eliminated by sales taxes.D. can occur even if output is at the efficient level. 4____21. The slope of an indifference curve isA. marginal rate of substitution.B. marginal rate of technical substitution.C. marginal rate of transformation.D. marginal utility.____ 22. When total output increases from 100 to 101 and total costs increase form 300 to 315,marginal cost isA. 30.B. 330.C. 300.D. 15.____ 23. As Al's Radiator Co. continues to add workers, while keeping the same amount ofmachinery, some workers may be underutilized because they have little work to do while waitingin line to use the machinery. When this occurs, Al's Radiator Co. encountersA. economies of scale.B. diseconomies of scale.C. increasing marginal returns.D. diminishing marginal returns.____ 24. If the price ratio of commodities X and Y is 1.25 and their ratio of marginal utility is 2, inorder to maximize utility the consumer shouldA. buy more X and buy less Y.B. buy more Y and buy less X.C. buy more X and Y at the same time.D. buy less X and Y at the same time.____25. Which of the following is the best example of a variable cost?A. monthly payments for hired laborB. property tax paymentsC. monthly rent payments for a warehouseD. pension payments to retired workers____ 26. The minimum points of the average variable cost and average total cost curves occurwhereA. the marginal cost curve lies below the average variable cost and average total cost curves.B. the marginal cost curve intersects those curves.C. wages are the lowest.D. the slope of total cost is the smallest.____ 27. When the marginal product of labor falls, the marginal cost of outputA. falls, then rises.B. becomes negative.C. rises.D. remains constant.5____ 28. Which of the following factors is most likely to shift IBM's total cost and marginal costcurves downward?A. a technological advance resulting in increased productivityB. higher property taxes charged by the municipal governmentC. increased wages to attract additional computer operatorsD. a reduction in subsidies from the state government____ 29. When total production decreases,A. APL is zero.B. APL is negative.C. APL is zero.D. APL is negative.____ 30. Since the 1980s, Wal-Mart stores have appeared in almost every community in America. Wal-Mart buys their goods in large quantities and therefore at cheaper prices. Wal-Mart also locates its stores where land prices are low, usually outside of the community business district. Many customers shop at Wal-Mart because of low prices and free parking. Local retailers, like the neighborhood drug store, often go out of business because they lose customers. This story demonstrates thatA. consumers are boycotting local retailers whose prices are relatively higher.B. there are diseconomies of scale in retail sales.C. there are economies of scale in retail sales.D. there are diminishing returns to producing and selling retail goods.____31. Which of the followings is mostly unlikely to be a monopolist?A. the only doctor in a small town.B. the Coca-Cola company.C. the electricity company in a region.D. the tap-water company in a region.____ 32. If a firm can produce the same level of output when it uses more one unit of labor whileusing less two units of capital, MRTSLK isA. 0.5.B. 2.C. 1.D. 4.____ 33. Which of the followings is correct when AC is at the lowest point?A. AVC=FC.B. MC=AC.C. P=AVC.D. P=MC.____ 34. A saving grace of monopoly compared with competition is thatA. monopolists have more incentives to reduce their production costs.B. the output restricted by a monopolist is a good way to reduce pollution in a polluted industry.C. keeping monopoly is better to technical innovation because of patent rights.D. given a market scale, the only firm can always cause diseconomy of scale.____ 35. A perfectly competitive market refers toA. the quantity of goods and services produced and consumed by participants accounts only a 6small fraction of total goods and services in the market.B. participants in the market are price takers.C. the products exchanged are identical.D. all of above.____36. For a firm in a perfectly competitive market, the short-run equilibrium means thatA. P=the lowest AC.B. P=MC.C. there not exist economic profit.D. there not exist economic loss.____ 37. Most markets are not monopolies in the real world becauseA. firms usually face downward-sloping demand curves.B. supply curves slope upward.C. price is usually set equal to marginal cost by firms.D. there are reasonable substitutes for most goods.____ 38. The supply curve of a monopolistA. is upper-slope.B. is its marginal cost curve.C. is its marginal revenue curve.D. does not exist.____ 39. In which kind of following markets a firm can charge the highest price via pricediscrimination?A. when the price elasticity of demand is highest.B. when the price elasticity of demand is lowest.C. when the price elasticity of demand is inelastic.D. when the price elasticity of demand is elastic.____ 40. In a perfectly competitive market the prices of factors X, Y, and Z are respectively $6, $4,and $1, while their marginal products are respectively 12, 8, and 2 units with the price of $1 eachunit, therefore,A. marginal revenue of X, Y, and Z is respectively smaller than its price.B. marginal revenue of X, Y, and Z equals respectively to its price.C. marginal revenue of X, Y, and Z is respectively bigger than its price.D. the above answers B, and C are true.II. Term definition (2 points per each. 20 points in total)1. Opportunity cost2. Production possibilities frontier3. Substitution effect4. Economies of Scale5. Price floor6. Coase theorem7. Public Goods8. Stockholders’ equity9. Economic profit10. Endowment effectIII. Discussion (4 points per each. 20 points in total)1. Why are the marginal and average cost curves U-shaped?2. What are the main sources of comparative advantage?3. What is the main reason for deciding whether to produce or to shut down in the short run?4. What is the prisoners’ dilemma? Can firms escape the prisoners’ dilemma?5. When a firm plans to expand production, there are two ways of raisingcapitals by using either bank loans with interest rate of 10% or the firm’s pr ofit. The manager of the firm wants to choose the latter way. His reason is that the firm’s profit is less expensive because it is free of interests. What do you think about the manager’s choice?IV. Case Analysis (20 points in total)Began in 2002 and after the hearing conference of witnesses, the department of railway implemented completely a floating ticket price in the Spring Transportation. However, its effect was very little: there were 128 million person-times of passengers in the Spring Transportation via railway in 2002; while the number of passengers is respectively 134 million in 2003, 137 million in 2004, 140 million in 2005, 150 million in 2006, and 156 million in 2007.Please answer the following questions:(1).For the markup of ticket prices in the Spring Transportation during the consecutive years, there were some reasons given by the department of railway: one reason was that “the markup of ticket prices is good to cutting the mountain-peak and filling the valley”, while a second reason was that “the markup can distribute passengers and mitigate the pressure of railway transportation”, etc. Please apply elasticity analysis to discussing these reasons.(8 points)(2). Based on the relationship between elasticity and revenue, can we get rid of our suspicion that the markup in the Spring Transportation is a handful of gains by the railway-related companies? (5 points)(3). The price of railway transportation is regulated by the government. Due to the disputed markup of ticket prices in the Spring Transportation during the years, the department of railway promised to keep a stable price in 2008. However, lots of people were disappointed at the way of price-down in the low-seasons but getting-back to the normal price in the Spring Transportation. Please make your comments on it. (7 points)Microeconomics Final Test 2009I. Multiple Choice (1 points per each. In total 40 points)Identify the letter of the choice that best completes the statement or answers the question.____ 1. Which of the following will change a nation's comparative advantage?a. a technological advance in producing manufactured goodsb. a doubling of all wagesc. quotas on importsd. a change in consumers' preferences for imported goods____ 2. If Japan can produce each unit of steel using fewer resources than Canada does,a. Canada has an absolute advantage in steel production.b. Japan has an absolute advantage in steel production.c. Japan has a comparative advantage in steel production.d. Canada has a comparative advantage in steel production.____ 3. Suppose you are considering going to the movies, and you place a $12 value on youranticipated enjoyment of the movie. The ticket price is $6 and you would be giving up two hoursof work, where you earn $5 per hour. You would go toa. work; the opportunity cost of the movies exceeds the expected benefit.b. the movies; your incentive is the $6 excess expected benefit.c. the movies; your enjoyment will exceed the lost wages by $2.d. the movies; the benefit of $18 exceeds the lost wages.____ 4. The amount of a good or service that buyers would be willing and able to purchase at aspecific price is known asa. quantity demanded.b. demand.c. supply.d. quantity supplied.____ 5. Which of the following are the best examples of substitute goods?a. personal computers and computer software programsb. milk and cookiesc. IBM and Gateway personal computersd. hot dogs and mustard____ 6. Which of the following sets of goods are most likely to be complementary goods?a. shoes and pizzab. automobiles and computersc. baseballs and baseball glovesd. football tickets and baseball tickets2____ 7. An increase in the number of tomato producers willa. increase market supply because the price of tomatoes will rise.b. increase market supply because market demand will increase as more tomatoes are produced.c. increase market supply because market supply is the sum of all the individual tomato producers'supply curves.d. increase market demand but leave market supply unchanged.____ 8. If price elasticity of demand is 2.0, this implies that consumers woulda. buy twice as much of the good if price falls by 10 percent.b. require a 2 percent cut in price to raise quantity demanded of the good by 1 percent.c. buy 2 percent more of the good in response to a 1 percent cut in price.d. require at least a $2 increase in price before showing any response to the price increase.____ 9. If Weiskamp T-Shirt Co. lowers its price from $6 to $5 and finds that students increasetheir quantity demanded from 400 to 600 T-shirts, then the demand for Weiskamp T-shirts withinthis price range isa. price inelastic.b. price elastic.c. unit elastic.d. cross elastic.____ 10.. A 5 percent increase in the price of sugar reduces sugar consumption by about 10percent. The increase causes households toa. spend more on sugar.b. spend less on sugar.c. spend the same amount on sugar.d. consume more goods like coffee and tea that are complements of sugar.____ 11. In which of the markets listed below would you expect the least elastic response fromsuppliers?a. fast foodb. soft drinkc. road buildingd. Picasso paintings____ 12. If the price elasticity of supply equals zero, this implies thata. suppliers can easily change quantity supplied when price changes.b. the supply curve is perfectly vertical.c. the percentage change in price of the good supplied is zero.d. the percentage change in quantity supplied equals the percentage change in price.___ 13. If the equilibrium price of bread is $2 and the government imposes a $1.50 price ceilingon the price of bread,a. more bread will be produced to meet the increased demand. 3b. there will be a shortage of bread.c. the demand for bread will decrease because suppliers will reduce their supply.d. a surplus of bread will emerge.____14. Rent controls typically end upa. increasing rents received by landlords.b. raising property values.c. encouraging landlords to overspend for maintenance.d. discouraging new housing construction.____ 15. Assume that the government sets a ceiling on the interest rate that banks charge on loans.If the ceiling is set below the market equilibrium interest rate, the result will be a. a surplus of credit.b. a shortage of credit.c. greater profits for banks issuing credit.d. a perfectly inelastic supply of credit in the market place.____ 16. Which of the following best explains the source of consumer surplus for good A?a. Many consumers would be willing to pay more than the market price for good A.b. Many consumers pay prices that are greater than the equilibrium price of good A.c. Many consumers think the market price of good A is greater than its cost.d. Many consumers think the price elasticity of demand for good A is unit elastic.____ 17. If you had been willing to pay $2.19 for the gallon of milk purchased at the supermarketbut were required to pay only $1.89, you have gaineda. a refund of $.30 from the clerk.b. a consumer surplus amounting to $.30.c. excess marginal benefit of $2.19.d. producer surplus of $.30.____18. If demand increases when supply is perfectly elastic, thena. consumer surplus will remain the same.b. consumer surplus will increase.c. it is not possible to predict the change in consumer surplus.d. consumer surplus will decrease with the increase in price.____ 19. Consumer surplus tends to be small whena. demand is elastic.b. supply is elastic.c. demand is inelastic.d. supply is inelastic.____ 20. Producer surplus tends to be large whena. supply is elastic. 4b. demand is elastic.c. supply is inelastic.d. demand is inelastic.____ 21. Which of the following is an example of a positive externality?a. air pollutionb. a person who litters in a public parkc. a consumer whose dream comes true when she buys a new convertibled. a nice garden in front of your neighbor's house____ 22. Deadweight lossa. means that there is a loss to some individuals without a corresponding gain to others.b. is not really a loss to society because what one individual loses another individual gains.c. can be eliminated by sales taxes.d. can occur even if output is at the efficient level.____23. The deadweight loss from an economically inefficient situation is equal toa. consumer surplus minus producer surplus.b. consumer surplus plus producer surplus.c. the consumer and producer surplus that people could gain by eliminating that inefficiency.d. the increase in consumer surplus minus the increase in producer surplus that people couldgain by eliminating that inefficiency.____ 24. The difference between accounting profit and economic profit relates toa. the manner in which revenues are defined.b. how total revenue is calculated.c. the manner in which costs are defined.d. the price of the good in the market.____ 25. As Al's Radiator Co. continues to add workers, while keeping the same amount ofmachinery, some workers may be underutilized because they have little work to do while waitingin line to use the machinery. When this occurs, Al's Radiator Co. encountersa. economies of scale.b. diseconomies of scale.c. increasing marginal returns.d. diminishing marginal returns.____ 26. Which of the following costs of publishing a book is a fixed cost?a. author royalties of 5% per bookb. costs of paper and bindingc. shipping and postaged. composition, typesetting, and jacket design____27. Which of the following is the best example of a variable cost? 5a. monthly payments for hired laborb. property tax paymentsc. monthly rent payments for a warehoused. pension payments to retired workers____ 28. If marginal cost is greater than average total cost thena. profits are increasing.b. economies of scale are becoming greater.c. average total cost remains constant.d. average total cost is increasing.____ 29. The minimum points of the average variable cost and average total cost curves occurwherea. the marginal cost curve lies below the average variable cost and average total cost curves.b. the marginal cost curve intersects those curves.c. wages are the lowest.d. the slope of total cost is the smallest.____ 30. When the marginal product of labor falls, the marginal cost of outputa. falls, then rises.b. becomes negative.c. rises.d. remains constant.____ 31. Which of the following factors is most likely to shift IBM's total cost and marginal costcurves downward?a. a technological advance resulting in increased productivityb. higher property taxes charged by the municipal governmentc. increased wages to attract additional computer operatorsd. a reduction in subsidies from the state government____ 32. Economies of scalea. requires a change in the size of operations and therefore is a long-run consideration.b. requires a more intensive use of existing plant and therefore is a short-run consideration.c. means that a doubling of plant size will double output.d. requires a change in the size of plant and therefore is a short-run consideration.____ 33. Since the 1980s, Wal-Mart stores have appeared in almost every community in America.Wal-Mart buys their goods in large quantities and therefore at cheaper prices. Wal-Mart alsolocates its stores where land prices are low, usually outside of the communitybusiness district.Many customers shop at Wal-Mart because of low prices and free parking. Local retailers, like theneighborhood drug store, often go out of business because they lose customers. This storydemonstrates thata. consumers are boycotting local retailers whose prices are relatively higher. 6b. there are diseconomies of scale in retail sales.c. there are economies of scale in retail sales.d. there are diminishing returns to producing and selling retail goods.____34. A local bagel company plans to keep and maintain its bagel factory, which is estimated tolast 25 years. All cost decisions it makes during the 25-year perioda. are short-run decisions.b. are long-run decisions.c. involve only maintenance of the factory.d. are zero, since the cost decisions were made at the beginning of the business.____ 35. If a firm experiences constant returns to scale at all output levels, then its long-runaverage total cost curve woulda. slope downward.b. be horizontal.c. slope upward.d. slope downward for low output levels and upward for high output levels.____ 36. Which of the following explains why long-run average cost at first decreases as outputincreases?a. diseconomies of scaleb. less-efficient use of inputsc. fixed costs becoming spread out over more units of outputd. gains from specialization of inputs____ 37. The total cost to the firm of producing zero units of output isa. zero in both the short run and the long run.b. its fixed cost in the short run, zero in the long run.c. its fixed cost in both the short run and the long run.d. its variable cost in both the short run and the long run.____ 38. Which of the following firms is the closest to being a perfectly competitive firm?a. a hot dog vendor in New Yorkb. Microsoft Corporationc. Ford Motor Companyd. the campus bookstore____39. Free entry means thata. there are no costs of entering into an industry.b. no legal barriers prevent a firm from entering an industry.c. a firm's marginal cost is zero.d. a firm has no fixed costs in the short run.____ 40. Most markets are not monopolies in the real world because 7a. firms usually face downward-sloping demand curves.b. supply curves slope upward.c. price is usually set equal to marginal cost by firms.d. there are reasonable substitutes for most goods.II. Term definition (2 points per each. 20 points in total)1. Comparative advantage2. Production possibilities frontier3. Substitution effect4. Inferior good5. Price ceiling6. Coase theorem7. Free riding8. Cross-price elasticity of demand9. Economic profit10. Endowment effectIII. Discussion (4 points per each. 20 points in total)1. Why are the marginal and average cost curves U-shaped?2. Is it possible for a factory to be too big?3. How a monopolistically competitive firm maximizes profits in the short run?4. What is the main reason for deciding whether to produce or to shut down in the short run?5. What is the prisoners’ dilemma? Can firms escape the prisoners’ dilemma?IV. Case Analysis (20 points in total)Disneyland PricingDisneyland, in southern California, is a well-run operation that rarely misses a trick when it comes to increasing profits. In 2005, Disneyland charged most adults $76 for a park hopper ticket (good 8 for both Disneyland and Disney’s California Adventure park) but charged southern Californians only $71. This policy of giving locals discounts makes sense if visitors from afar are willing to pay more than locals and if Disneyland can prevent locals from selling。