微观经济学综合期末练习

1一、TrueorFalse1.AccordingtotheLawofComparativeAdvantage,individualsandeconomiesshouldspecializeinproducingthosegoodsandservicesinwhichtheyhaveacomparativeadvantage.()2.IfMUx/PxislessthanMUy/Py,thenautility-maximizingconsumertheconsumershouldconsumemoreXandlessY.()3.Iftherearetwogoodswithpositivepricesandthepriceofonegoodisreduced,whileincomeandotherpricesremainconstant,thenthesizeofthebudgetsetisreduced.()4.Justasinthetheoryofutilitymaximizingconsumers,thetheoryofprofitmaximizingfirmsallowsthepossibilityofGiffenfactors.Thesearefactorsforwhichafallinpriceleadstoafallindemand.()5.Ifthevalueofthemarginalrevenueproduct(MRP)oflaborexceedsthewagerate,thenacompetitive,profit-maximizingfirmwouldwanttohiremorelabor.()6.Iftheamountofmoneythatpeoplearewillingtospendonagoodstaysthesamewhenitspricedoubles,thendemandforthatgoodmusthaveapriceelasticityofdemandsmallerinabsolutevaluethanone.()7.Iftheequationforthedemandcurveisq=40-2p;thenmarginalrevenuedecreasesinthequantitydemanded.()8.Producer'ssurplusatpricepistheverticaldistancebetweenthesupplycurveandthedemandcurveatpricep.()9.Thosewhowanttousehighercigarettetaxesasameansofreducingsmokingwouldpreferthedemandcurveforcigarettestobehighlyelastic.()210.Afirmisexperiencingeconomiesofscalemeansthatthepercentincreaseinoutputisgreaterthanpercentincreaseininputs,andhence,thelongrunaveragecostofproductionisstable.()二、MultipleChoice1.Economicsisthestudyofa.scarcityundertheconditionsofdemocracyb.choicewithinasystemofcapitalismc.theroleofgovernmentinamarketsystemd.choiceunderconditionsofscarcity2.Opportunitycostsexistbecausea.thereisapriceattachedtovirtuallyeverygoodorserviceb.technologyisnotfixedintheeconomyc.peoplehavedifferenttastesandpreferencesd.limitedresourcescannotsatisfyallofthewantsinsociety3.Alongaproductionpossibilitiesfrontiera.moreofonegoodcanbeproducedwithoutgivingupsomeoftheothergoodb.resourcesarenotbeingfullyutilizedc.availableresourcesarebeingusedefficientlyd.thereisproductiveinefficiency4.Youhaveabondthatyoucanredeemfor$10,000inthenextyear.Theinterestrateis10%peryear.Howmuchisthebondworthtoday?a.$9,090.91b.$10,000.00c.$8,264.46d.$9,523.815.WhichofthefollowingwouldNOTcausethedemandcurveforcollegefootballticketstoshift?a.anincreaseinthepriceofprofessionalfootballticketsb.adecreaseinthepriceofcollegebasketballticketsc.anincreaseinthepriceofcollegefootballtickets3d.anincreaseinstudentpreferencesforcollegefootballtickets6.Apriceflooroncornwouldhavetheeffectofa.creatingasurplusregardlessofwherethepricefloorissetb.creatingasurplusifthepricelevelissetabovetheequilibriumpricec.creatingashortagewhenthepricefloorissetbelowtheequilibriumpriced.creatingashortageregardlessofwherethepricefloorisset7.Alongaperfectlyelasticsupplycurvea.thequantitysuppliedisalwaysthesameb.thepriceelasticityofdemandisalwaysthesamec.thepriceisalwaysthesamed.thecross-priceelasticityofdemandisalwaysthesame8.Theincomeeffectmeasureshowa.thequantityofagoodsuppliedchangesinresponsetoachangeinincomeb.thequantityofagoodsuppliedchangesinresponsetoachangeinthepriceofagoodc.howfarthebudgetlineshiftsduetoachangeinincomed.thequantityofagooddemandedchangesinresponsetoachangeinpurchasingpower9.Whichofthefollowingformulasisincorrect?a.AC=AVC+(FC/Q)b.TVC=TC/Qc.TC=FC+VCd.AFC=FC/Q10.Whenthereareimplicitcostsofproduction,a.accountingandeconomicprofitareequalb.explicitcostsofproductionaresmallc.accountingprofitwillexceedeconomicprofitd.economicprofitwillexceedaccountingprofit11.Whichofthefollowingistrueregardingthecostcurvesfacedbyafirm?a.whenMCAC,AVCmustbefalling4b.whenMCAVC,ACmustberisingc.whenMCAC,ACmustberisingd.MCandACarethesameforaperfectlycompetitivefirm12.Aprofit-maximizingcompetitivefirmusesjustoneinput,x.Itsproductionfunctionisq=8x1/2.Thepriceofoutputis16andthefactorpriceis8.Theamountofthefactorthatthefirmdemandsis:a.10b.22.63c.64d.4813.Theproductionfunctionisf(L,M)=4L1/2M1/2;whereListhenumberofunitsoflaborandMisthenumberofmachinesused.Ifthecostoflaboris$25perunitandthecostofmachinesis$64perunit,thenthetotalcostofproducing6unitsofoutputwillbe:a.120b.267c.150d.24014.WhenFarmerHoglundappliesNpoundsoffertilizerperacre,themarginalproductoffertilizeris1-N/200bushelsofcorn.Ifthepriceofcornis$1perbushelandthepriceoffertilizeris$0.40perpound,thenhowmanypoundsoffertilizerperacreshouldFarmerHoglunduseinordertomaximizehisprofits?a.120b.240c.64d.24815.Ifamonopolistfacesaninversedemandcurve,p(y)=100-2yandhasconstantmarginalcostsof12andzerofixedcosts,howmanyproductswillbesold?a.22b.44c.50d.88三、CalculationsandDiscussions1.Consideraperfectlycompetitivemarket.Demandisgivenbytheequation28620dQPandsupplyisgivenbytheequation8840sQP.Quantitiesaremillionsofkilogramsperyearandpriceisdollarsperkilogram.a)Solvefortheequilibriumpriceandquantity.b)Supposeapricefloorispacedat$3.95.Willasurplusresultand,ifso,howmuchofone?c)Supposeapriceceilingisplacedat$2.65.Willashortageresultand,ifso,howmuchof5one?d)Supposethegovernmentprovidesasubsidyof$0.50perkilogramtosellersofthegood.Determinethenewequilibriumpriceandquantity,theamountsellers