Question 1

Assumptions are chosen primarily because they are:

Accepted Answer

A)  realistic.
B)  convenient.
C)  simplifications.
D)  abstract.E) B) and D)
F) All of the above

Question 2

Comparative statics is the method of analysing:

Accepted Answer

A)  the effect on a market equilibrium caused by a change in the model.
B)  the difference between normative and positive questions.
C)  the variables that cause market demand to change.
D)  the determinants of individual preferences.E) None of the above
F) A) and B)

Question 3

A preference ordering gives the:

Accepted Answer

A)  order of admission to a social event.
B)  description of an individual's desires.
C)  number of fish an individual is allocated.
D)  protocol rank of various government officials.E) C) and D)
F) A) and B)

Question 4

The market supply curve is upward sloping which means that the quantity supplied when the price .

Accepted Answer

A)  rises, rises
B)  is unchanged, rises
C)  falls, rises
D)  is unchanged, fallsE) A) and D)
F) A) and C)

Question 5

Building an economic model requires:

Accepted Answer

A)  deriving a conclusion or prediction.
B)  realistic assumptions.
C)  richness comparable to that of the real world.
D)  the use of politically correct assumptions.E) A) and B)
F) A) and C)

Question 6

Economic theory assumes that people want:

Accepted Answer

A)  to advance their own interests.
B)  material goods primarily.
C)  more of everything.
D)  money in preference to all other goods.E) A) and B)
F) All of the above

Question 7

The economic model's validity is determined:

Accepted Answer

A)  by convincing a great deal of economists of its correctness.
B)  by testing it using real life evidence.
C)  by testing it using experiments involving undergraduate economics students.
D)  by making sure they have a flawless logic.E) A) and D)
F) A) and C)

Question 8

Economic models are tested:

Accepted Answer

A)  with real world evidence.
B)  to find conclusive answers.
C)  under carefully controlled conditions.
D)  in repeated experiments.E) A) and C)
F) None of the above

Question 9

Which of the following is an example of a technology?

Accepted Answer

A)  An iPhone 4.
B)  Principles of microeconomics.
C)  A recipe for chocolate chip cookies.
D)  Microsoft Windows.E) B) and C)
F) A) and C)

Question 10

Preferences are:

Accepted Answer

A)  the amount of happiness one has.
B)  what we use to rank goods.
C)  a dollar measure of well being.
D)  a mathematical function.E) A) and B)
F) None of the above

Question 11

Market demand and supply curves tell:

Accepted Answer

A)  the price at which a product will be bought or sold given the quantity bought or sold.
B)  whether buyers and sellers are happy.
C)  the size of government price supports in the market.
D)  the quantity of a product that will be bought or sold given its price.E) A) and D)
F) All of the above

Question 12

Suppose that the demand for butter can be expressed by the equation Qd=150- 15P and the supply for butter can be expressed by the equation Qs=- 15+30P where Q is measured in millions of kilograms and P is the price per kilogram. What is the equilibrium price for butter? 
If the government institutes a price support of $6 per kilogram, how much butter will the government have to purchase?

Accepted Answer

The market equilibrium requires that Q^d⁼Q^s....

Question 13

Explain the difference between the buy- and- store program and the price subsidy program instituted by the government.

Accepted Answer

The former, as the name implies, require...

Question 14

Normative economics includes all of the following except:

Accepted Answer

A)  indicated ways of attaining a particular desirable social state.
B)  explains how economies operate.
C)  valuates and ranks several social states.
D)  assesses the desirability of a particular policy.E) B) and D)
F) A) and D)

Question 15

A pure market economy:

Accepted Answer

A)  assumes all property is held in common.
B)  is where all goods and services are directed to their most valuable use by price.
C)  is where all firms own all resources.
D)  allows for some government intervention.E) B) and C)
F) All of the above

Question 16

Locational models cannot be used to explain:

Accepted Answer

A)  the existence of mini- malls.
B)  the nature of programing of new radio stations.
C)  perfectly competitive markets.
D)  the positions political parties assume along the political spectrum.E) A) and D)
F) A) and C)

Question 17

An individual supply curve tells us how many units:

Accepted Answer

A)  firms will sell at various prices.
B)  an individual will buy at various prices.
C)  individuals will buy at various prices.
D)  a firm will sell at various prices.E) C) and D)
F) B) and D)

Question 18

When US President Barack Obama gave his Nobel prize money away, he was:

Accepted Answer

A)  being altruistic.
B)  forced to by domestic political pressure.
C)  making a mistake.
D)  acting in his own self interest.E) None of the above
F) All of the above

Exam 1: Microeconomics: a Working Methodology

The economic model's validity is determined:

Correct Answer
verified

Explain the difference between the buy- and- store program and the price subsidy program instituted by the government.

Correct Answer
verified
The former, as the name implies, require...
View Answer

Assumptions are chosen primarily because they are:

Correct Answer
verified

Economic models are tested:

Correct Answer
verified

Market demand and supply curves tell:

Correct Answer
verified

A pure market economy:

Correct Answer
verified

Building an economic model requires:

Correct Answer
verified

Which of the following is an example of a technology?

Correct Answer
verified

When US President Barack Obama gave his Nobel prize money away, he was:

Correct Answer
verified

Comparative statics is the method of analysing:

Correct Answer
verified

Normative economics includes all of the following except:

Correct Answer
verified

Economic theory assumes that people want:

Correct Answer
verified

Correct Answer
verified
The market equilibrium requires that Q^d⁼Q^s....
View Answer

Locational models cannot be used to explain:

Correct Answer
verified

An individual supply curve tells us how many units:

Correct Answer
verified

Preferences are:

Correct Answer
verified

A preference ordering gives the:

Correct Answer
verified

The market supply curve is upward sloping which means that the quantity supplied when the price .

Correct Answer
verified

Exam 1: Microeconomics: a Working Methodology

The economic model's validity is determined:

Correct AnswerverifiedShow Answer

Explain the difference between the buy- and- store program and the price subsidy program instituted by the government.

Correct AnswerverifiedThe former, as the name implies, require...View AnswerShow Answer

Assumptions are chosen primarily because they are:

Correct AnswerverifiedShow Answer

Economic models are tested:

Correct AnswerverifiedShow Answer

Market demand and supply curves tell:

Correct AnswerverifiedShow Answer

A pure market economy:

Correct AnswerverifiedShow Answer

Building an economic model requires:

Correct AnswerverifiedShow Answer

Which of the following is an example of a technology?

Correct AnswerverifiedShow Answer

When US President Barack Obama gave his Nobel prize money away, he was:

Correct AnswerverifiedShow Answer

Comparative statics is the method of analysing:

Correct AnswerverifiedShow Answer

Normative economics includes all of the following except:

Correct AnswerverifiedShow Answer

Economic theory assumes that people want:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe market equilibrium requires that Qd=Qs....View AnswerShow Answer

Locational models cannot be used to explain:

Correct AnswerverifiedShow Answer

An individual supply curve tells us how many units:

Correct AnswerverifiedShow Answer

Preferences are:

Correct AnswerverifiedShow Answer

A preference ordering gives the:

Correct AnswerverifiedShow Answer

The market supply curve is upward sloping which means that the quantity supplied when the price .

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
The former, as the name implies, require...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The market equilibrium requires that Q^d⁼Q^s....
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified