Question 1

Pareto optimality is equivalent to:

Accepted Answer

A) a certain economic outcome. 
B) an utopian economic outcome. 
C) what Wilfredo Pareto deemed as optimal. 
D) economic efficiency. 
A) a certain economic outcome. 
B) an utopian economic outcome. 
C) what Wilfredo Pareto deemed as optimal. 
D) economic efficiency. D

Question 2

An individual demand curve tells us how many units:

Accepted Answer

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

Question 3

Comparative institutional analysis is concerned with the:

Accepted Answer

A) development of institutions over time. 
B) forces causing changes in institutions. 
C) differences between institutions across countries. 
D) effect of different institutions on the state of society. 
A) development of institutions over time. 
B) forces causing changes in institutions. 
C) differences between institutions across countries. 
D) effect of different institutions on the state of society. D

Question 4

The following examples can be categorized as common property problems except:

Accepted Answer

A) Grandpa Joe's backyard. 
B) non- toll highways. 
C) the student lounge. 
D) open ocean fisheries. 
A) Grandpa Joe's backyard. 
B) non- toll highways. 
C) the student lounge. 
D) open ocean fisheries.

Question 5

The Cost- Benefit criterion assumes all of the following except:

Accepted Answer

A) The distribution of costs and benefits is irrelevant. 
B) Positive net social benefits indicate better social states. 
C) "A dollar is a dollar." 
D) Gains and losses from changes in social state are equal. 
A) The distribution of costs and benefits is irrelevant. 
B) Positive net social benefits indicate better social states. 
C) "A dollar is a dollar." 
D) Gains and losses from changes in social state are equal.

Question 6

When economists evaluate the effect of carbon taxes on the market for gasoline, this is known as:

Accepted Answer

A) normative economics. 
B) the theory of self interest. 
C) comparative statics. 
D) general equilibrium analysis. 
A) normative economics. 
B) the theory of self interest. 
C) comparative statics. 
D) general equilibrium analysis.

Question 7

Comparative statics analysis evaluates the effect of:

Accepted Answer

A) exogenous variables on each other. 
B) exogenous variables on endogenous variables. 
C) endogenous variables on each other. 
D) endogenous variables on exogenous variables. 
A) exogenous variables on each other. 
B) exogenous variables on endogenous variables. 
C) endogenous variables on each other. 
D) endogenous variables on exogenous variables.

Question 8

Microeconomics is concerned with:

Accepted Answer

A) distinguishing good from bad social policies. 
B) the behaviour of invisible animals. 
C) economic aggregates. 
D) decisions by individuals and firms. 
A) distinguishing good from bad social policies. 
B) the behaviour of invisible animals. 
C) economic aggregates. 
D) decisions by individuals and firms.

Question 9

The preferences of individuals are key to economic analysis because:

Accepted Answer

A) self- interest is not relevant for the understanding of how firms operate. 
B) motivation is important in explaining economic choices. 
C) self- interest is not relevant for understanding how consumers act in the marketplace. 
D) economics is taking a subjective view of the world. 
A) self- interest is not relevant for the understanding of how firms operate. 
B) motivation is important in explaining economic choices. 
C) self- interest is not relevant for understanding how consumers act in the marketplace. 
D) economics is taking a subjective view of the world.

Question 10

Institutions are all of the following except:

Accepted Answer

A) informal rules that are not government sanctioned. 
B) the rules of the game governing economic exchanges. 
C) your local phone company. 
D) laws governing ownership, antitrust, minimum wage, etc. 
A) informal rules that are not government sanctioned. 
B) the rules of the game governing economic exchanges. 
C) your local phone company. 
D) laws governing ownership, antitrust, minimum wage, etc.

Question 11

Overcrowding frequently occurs when consumers:

Accepted Answer

A) share common property. 
B) receive subsidies for goods they consume. 
C) pay the full cost of resources they use. 
D) prevent others from using resources. 
A) share common property. 
B) receive subsidies for goods they consume. 
C) pay the full cost of resources they use. 
D) prevent others from using resources.

Question 12

Competition is:

Accepted Answer

A) the consequence of "more is better." 
B) utterly harmless. 
C) inherently bad. 
D) independent of scarcity. 
A) the consequence of "more is better." 
B) utterly harmless. 
C) inherently bad. 
D) independent of scarcity.

Question 13

Normative economics:

Accepted Answer

A) involves value judgments. 
B) tries to present the mere facts about the economy. 
C) sets social norms and beliefs at the centre of the analysis. 
D) is concerned with the possible social states of an economy. 
A) involves value judgments. 
B) tries to present the mere facts about the economy. 
C) sets social norms and beliefs at the centre of the analysis. 
D) is concerned with the possible social states of an economy.

Question 14

A market is characterized by the demand and supply curves: XD = 40 - 4p and XS = 2 + p, respectively. Which of the following is an appropriate designated support price under a price subsidy program?

Accepted Answer

A) $ 9 
B) $3 
C) $7 
D) $0 
A) $ 9 
B) $3 
C) $7 
D) $0

Question 15

In what way is drinking water a scarce resource?

Accepted Answer

To the extent to which it takes economic

Question 16

A perfectly competitive market has all of the following characteristics except:

Accepted Answer

A) Each seller offers to sell a small part of the total quantity transacted. 
B) Each buyer offers to buy a large part of the total quantity transacted. 
C) There are many buyers. 
D) There are many sellers. 
A) Each seller offers to sell a small part of the total quantity transacted. 
B) Each buyer offers to buy a large part of the total quantity transacted. 
C) There are many buyers. 
D) There are many sellers.

Question 17

A market demand curve tells us how many units:

Accepted Answer

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

Question 18

Consider the water shortage problem described in Chapter 1. Compare and contrast the metered and non- metered schemes used to address the shortage issue.

Accepted Answer

It is important to note that the schemes

Question 19

In a pure market economy, the role of the government is to:

Accepted Answer

A) define and enforce private property rights. 
B) ensure that income is equitably distributed. 
C) regulate the markets where goods and services are exchanged. 
D) reallocate resources to create Pareto improvements. 
A) define and enforce private property rights. 
B) ensure that income is equitably distributed. 
C) regulate the markets where goods and services are exchanged. 
D) reallocate resources to create Pareto improvements.

Question 20

When society moves from one social state to another, any gains are received, and any losses are paid, by:

Accepted Answer

A) voluntary compensation of losers by gainers. 
B) the individuals involved. 
C) a windfall profit tax on those who gain. 
D) a transfer tax to compensate losers. 
A) voluntary compensation of losers by gainers. 
B) the individuals involved. 
C) a windfall profit tax on those who gain. 
D) a transfer tax to compensate losers.

Pareto optimality is equivalent to:

An individual demand curve tells us how many units:

Comparative institutional analysis is concerned with the:

The following examples can be categorized as common property problems except:

The Cost- Benefit criterion assumes all of the following except:

When economists evaluate the effect of carbon taxes on the market for gasoline, this is known as:

Comparative statics analysis evaluates the effect of:

Microeconomics is concerned with:

The preferences of individuals are key to economic analysis because:

Institutions are all of the following except:

Overcrowding frequently occurs when consumers:

Competition is:

Normative economics:

A market is characterized by the demand and supply curves: X_D= 40 - 4p and X_S= 2 + p, respectively. Which of the following is an appropriate designated support price under a price subsidy program?

In what way is drinking water a scarce resource?

A perfectly competitive market has all of the following characteristics except:

A market demand curve tells us how many units:

Consider the water shortage problem described in Chapter 1. Compare and contrast the metered and non- metered schemes used to address the shortage issue.

In a pure market economy, the role of the government is to:

When society moves from one social state to another, any gains are received, and any losses are paid, by:

A Theory of Preferences

Demand Theory

More Demand Theory

Intertemporal Decision Making and Capital Values

Production Cost: One Variable Input

Production Cost: Many Variable Inputs

The Theory of Perfect Competition

Applications of the Competitive Model

Monopoly

Input Markets and the Allocation of Resources

Labour Market Applications

Competitive General Equilibrium

Price Discrimination Monopoly Practices

Introduction to Game Theory

Game Theory and Oligopoly

Choice Making Under Uncertainty

Assymmetric Information, the Rules of the Game, and Externalities

The Theory of the Firm

Assymetric Information and Market Behaviour

Filters

Exam 1: Microeconomics: a Working Methodology

Pareto optimality is equivalent to:

An individual demand curve tells us how many units:

Comparative institutional analysis is concerned with the:

The following examples can be categorized as common property problems except:

The Cost- Benefit criterion assumes all of the following except:

When economists evaluate the effect of carbon taxes on the market for gasoline, this is known as:

Comparative statics analysis evaluates the effect of:

Microeconomics is concerned with:

The preferences of individuals are key to economic analysis because:

Institutions are all of the following except:

Overcrowding frequently occurs when consumers:

Competition is:

Normative economics:

A market is characterized by the demand and supply curves: XD = 40 - 4p and XS = 2 + p, respectively. Which of the following is an appropriate designated support price under a price subsidy program?

In what way is drinking water a scarce resource?

A perfectly competitive market has all of the following characteristics except:

A market demand curve tells us how many units:

Consider the water shortage problem described in Chapter 1. Compare and contrast the metered and non- metered schemes used to address the shortage issue.

In a pure market economy, the role of the government is to:

When society moves from one social state to another, any gains are received, and any losses are paid, by:

A Theory of Preferences

Demand Theory

More Demand Theory

Intertemporal Decision Making and Capital Values

Production Cost: One Variable Input

Production Cost: Many Variable Inputs

The Theory of Perfect Competition

Applications of the Competitive Model

Monopoly

Input Markets and the Allocation of Resources

Labour Market Applications

Competitive General Equilibrium

Price Discrimination Monopoly Practices

Introduction to Game Theory

Game Theory and Oligopoly

Choice Making Under Uncertainty

Assymmetric Information, the Rules of the Game, and Externalities

The Theory of the Firm

Assymetric Information and Market Behaviour

Filters

A market is characterized by the demand and supply curves: X_D= 40 - 4p and X_S= 2 + p, respectively. Which of the following is an appropriate designated support price under a price subsidy program?