Bài tập Chapter 1 - Kinh tế vi mô FTU

lOMoARcPSD|69091439 PRINCIPLES OF MICROECONOMICS INSTRUCTOR: MSc. NGUYEN VIET HOA CHAPTER 1: TEN PRINCIPLES OF ECONOMICS 1. What concept does economics deal primarily with? A. Money and banking B. Poverty and wealth C. Scarcity and choice D. Debits and credits 2. Which of the following is NOT included in the decisions that every society must make? A. what goods will be produced B. who will produce the goods C. what determines consumer preferences D. who will consume the goods 3. For what reason do both households and societies face many decisions? A. because resources are scarce B. because populations may increase or decrease over time C. because wages for households and therefore society fluctuate with business cycles D. because people, by nature, tend to disagree 4. When is a good considered scarce in a society? A. when more output of the good is possible B. when everyone in that society cannot have all they want of the good C. when the government restricts production of the good D. when only the richest people in the economy can buy all they want of the good 5. When does scarcity exist? A. when there is less than an infinite amount of a resource or good B. when society can meet the wants of every individual C. when there is less of a good or resource available than people wish to have D. when the government fails to produce goods 6. Which of the following would NOT be true in a world without scarcity? A. There would be no need for the science of economics. B. Everyone would have all the goods and services they wanted. C. There would have to be an infinite supply of every resource. D. There would be opportunity costs. 7. What is the economy experiencing when a society cannot produce all the goods and services people wish to have? A. scarcity viethoa.k52@ftu.edu.vn 1 Downloaded by Hai Phan Chinh (haiphanchinh34@gmail.com) lOMoARcPSD|69091439 PRINCIPLES OF MICROECONOMICS INSTRUCTOR: MSc. NGUYEN VIET HOA B. communism C. externalities D. market failure 8. For society, when is a good NOT scarce? A. if at least one individual in society can obtain all he or she wants of the good B. if firms are producing at full capacity C. if all members of society can have all they want of it D. if those who have enough income can buy all they want of the good 9. What does economics study? A. How society manages its scarce resources B. The government's role in society C. How to increase production D. How firms make profits 10. Which of the following is NOT a major area of study for economists? A. how people make decisions B. how countries choose national leaders C. how people interact with each other D. how forces and trends affect the overall economy 11. What concept is illustrated by the adage, “There is no such thing as a free lunch”? A. tradeoffs B. scarcity C. productivity D. efficiency 12. What does the adage, “There is no such thing as a free lunch” mean? A. 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. 13. What do economists illustrate when they use the phrase "There is no such thing as a free lunch"? A. How inflation increases prices B. That to get one thing, we must give up something else C. That nothing is free in a market economy D. That if something looks too good to be true, it probably is viethoa.k52@ftu.edu.vn 2 Downloaded by Hai Phan Chinh (haiphanchinh34@gmail.com) lOMoARcPSD|69091439 PRINCIPLES OF MICROECONOMICS INSTRUCTOR: MSc. NGUYEN VIET HOA 14. Henry decides to spend 2 hours playing golf rather than working at his job which pays $8 per hour. What is Henry's tradeoff? A. the $16 he could have earned working for 2 hours B. nothing, because he enjoys playing golf more than working C. the increase in skill he obtains from playing golf for those 2 hours D. nothing, because he spent $16 for green fees to play golf 15. When society requires that firms reduce pollution, what happens? A. There is a tradeoff because of reduced incomes to the firms' owners, workers, and customers. B. There is no trade-off, since everyone benefits from reduced pollution. C. There is no trade-off for society as a whole, since the cost of reducing pollution falls only on the firms affected by the requirements. D. There is a trade-off only if some firms are forced to close. 16. Daniel decides to spend the last two hours of the night before his economics exam studying instead of sleeping. For Daniel, what would his tradeoff be? A. nothing, since no dollar value can be put on sleep B. nothing, since studying would be more beneficial than sleep C. the six hours of sleep he could have had if he had gone to bed before midnight D. the two hours of rest he would have gotten 17. A rational person does not act unless A. The action produces marginal costs that exceed marginal benefits. B. The action produces marginal benefits that exceed marginal costs. C. The action makes money for the person. D. None of the above 18. Who guide most of the economic activity in the market economy? A. Government B. Sellers C. Buyers D. Both sellers and buyers 19. What does efficiency mean? A. Society is conserving resources in order to save them for the future. B. Society’s goods and services are distributed fairly among society's members. C. Society has lessened its dependence on foreign energy sources. D. Society is getting the most it can from its scarce resources. viethoa.k52@ftu.edu.vn 3 PRINCIPLES OF MICROECONOMICS INSTRUCTOR: MSc. NGUYEN VIET HOA Downloaded by Hai Phan Chinh (haiphanchinh34@gmail.com) lOMoARcPSD|69091439 20. In which of the following situations would economists use the word equity? A. Each member of society has the same income. B. Society is getting the most it can from its scarce resources. C. Those in society who have the least will receive the most. D. The benefits of society's resources are distributed fairly among society's members. 21. What happens when government policies are being designed? A. There is usually a tradeoff between equity and efficiency. B. Equity and efficiency goals are usually independent of each other. C. Equity can usually be achieved without an efficiency loss. D. Increasing efficiency usually results in more equity. 22. When government policies such as the welfare system try to help the neediest members of society, what happens? A. It increases equity and reduces efficiency. B. It reduces charitable contributions in an economy. C. It increases the productivity of the needy in the society. D. It causes market failure to occur. 23. When the government attempts to cut the economic pie into more equal slices, what happens? 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 for everyone. D. The economy will spend too much time cutting and loses the ability to produce enough pie for everyone. 24. When the government attempts to improve equity in an economy, what is often the result? A. an increase in overall output in the economy B. additional government revenue since overall income will increase C. an actual reduction in equity D. reduced efficiency in the economy 25. What is the opportunity cost of going to college? A. 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 viethoa.k52@ftu.edu.vn Downloaded by Hai Phan Chinh (haiphanchinh34@gmail.com) lOMoARcPSD|69091439 4 PRINCIPLES OF MICROECONOMICS INSTRUCTOR: MSc. NGUYEN VIET HOA 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 26. For most students, what is the largest single cost of an university education? A. the wages given up to attend school B. tuition, fees, and books C. room and board D. transportation, parking, and entertainment 27. What is the opportunity cost of an item? A. the number of hours needed to earn money to buy it B. what you give up to get that item C. usually more than the dollar value of the item D. usually less than the dollar value of the item 28. Russell spends an hour studying instead of playing tennis. What is the opportunity cost to him of studying? A. the improvement in his grades from studying for the hour B. the difference between 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 the value of playing tennis 29. What do we know about college-age athletes who drop out of college to play professional sports? A. They are not rational decision makers. B. They are well aware that their opportunity cost of attending college is very high. C. They are concerned more about present circumstances than their future. D. They underestimate the value of a college education. 30. Rational people think at A. The utility B. The benefit C. The cost D. The margin 31. How do people make decisions at the margin? viethoa.k52@ftu.edu.vn Downloaded by Hai Phan Chinh (haiphanchinh34@gmail.com)