Deck 1: Adventures in Microeconomics

Question 1

A major factor in the evolution of empirical analysis in microeconomics is the:

A) influence of John Maynard Keynes.
B) computer revolution.
C) influence of Friedrich Hayek.
D) work of Adam Smith.

Answer 1

B

Question 2

In a perfectly competitive market, firms:

A) determine the number of consumers.
B) create barriers to entry.
C) take the market price as given.
D) have market power.

Answer 2

C

Question 3

Which of the following is considered a microeconomic topic?

A) unemployment
B) inflation
C) gross domestic product
D) the telecommunications industry

Answer 3

D

Question 4

Microeconomic tools:

A) can only be applied to markets for coffee.
B) can be applied to any market.
C) can only be applied to financial markets.
D) are not used to think rationally about decisions.

Question 5

On the demand side of the market, you would examine:

A) the prices of inputs.
B) the preferences of consumers.
C) cost of production data.
D) the number of firms.

Question 6

Oligopolies exist when:

A) there are no barriers to entry.
B) firms are price takers.
C) the market supply curve reflects the aggregate cost curves of firms.
D) multiple firms interact strategically in the same market.

Question 7

The combined role of risk, uncertainty, and time is prominent in:

A) the decision of which movie to watch.
B) restaurant decisions.
C) grocery store shopping decisions.
D) investment decisions.

Question 8

Empirical disciplines:

A) use data analysis and experiments.
B) have a singular focus on theoretical models.
C) have a singular focus on historical importance.
D) only examine political topics.

Question 9

Each of the following will impact the consumption decision EXCEPT the:

A) price of the good.
B) income of the consumer.
C) price of a substitute good.
D) fixed cost of production.

Question 10

Behavioral economics is considered an intersection of:

A) psychology and economics.
B) physics and economics.
C) law and economics.
D) supply and demand.

Question 11

Examples of using theories and models include:

A) understanding how members of OPEC choose how much oil to produce.
B) explaining how the NBA sets salaries for rookies.
C) A and B.
D) none of the above.

Question 12

When comparing a monopoly outcome to a perfectly competitive outcome, the monopolist produces _____ and charges a _____ price.

A) more; higher
B) less; higher
C) less; lower
D) more; lower

Question 13

Each of the following would impact the production decision EXCEPT the:

A) price of the good.
B) income of consumers.
C) price of capital.
D) technology available for production.

Question 14

To learn the intricacies of theories and models, economists use:

A) graphs and mathematics.
B) their best guess.
C) Wikipedia.
D) only the stock market.

Question 15

The term ceteris paribus is an assumption that economists use implying:

A) all else is equal.
B) to the victor go the spoils.
C) nothing can be said to be certain except death and taxes.
D) the market is always efficient.

Question 16

On the supply side of the market, you would examine:

A) the decisions of firms.
B) the preference of consumers.
C) income of consumers.
D) the number of consumers.

Question 17

All of the following are examples of spillover effects EXCEPT:

A) second-hand smoke.
B) pollution.
C) price gouging.
D) road congestion

Question 18

Which of the following is a microeconomic policy?

A) fiscal policy
B) monetary policy
C) rent control
D) tariffs imposed on all importing nations

Question 19

Which of the following is NOT a microeconomic topic?

A) a tax on tobacco
B) expansionary monetary policy
C) a subsidy for solar power
D) a quota on taxicabs

Question 20

If there is a single firm in the market, then the market is considered:

A) monopolistically competitive.
B) perfectly competitive.
C) a monopoly.
D) an oligopoly.