Microeconomics Exam Questions

If the price of swimming pools decreases, we would expect the demand for:

If supply decreases and its slope remains the same, consumer surplus:

What is a positive economic statement?

If the price of Nike Air Force 1 sneakers is below the equilibrium price:

If instead of specialized doctors we had doctors who each knew the same about all aspects of medicine, it would be:

Which variable does not shift the demand curve?

If romaine lettuce and iceberg lettuce are substitutes a ______ blank in the price of romaine lettuce will ______ the demand of iceberg lettuce

Angela and Ed are married. Angela can do $40 worth of household chores per hour, and Ed can do $15 worth of household chores per hour. In the labor market, Ed can earn $30/hour and Angela can earn $40/hour. The theory of comparative advantage suggests that:

Which of the following statements is true:

Assuming that spaghetti is an inferior good for most people. As their income increase, all other things held constant, the demand for spaghetti will:

The demand curve for oil has a ____ slope because a _____ price of oil signals consumers to use oil in ____ valuable uses:

In 1808, when slavery in the United States was still legal, Congress banned the importation of new slaves. Under these circumstances, would a slave redemption campaign have worked well? Why?

When a rich country that has absolute advantages in all products begins trading with a poor country:

Which is not a normative economic statement?

A 4 percent increase in the price of beer will cause a 1 percent decline in the quantity of beer demanded. The demand for beer is:

In 2005, Ireland began taxing residents on how much garbage they threw away in an effort to promote recycling. In response, residents began burning trash (which is environmentally more harmful and resulted in an increase in burn victims as people accidentally set themselves on fire.) This story suggests that the elasticity of demand for trash collection was more _____ than lawmakers believed because _____ than previously thought.

If the equilibrium price increases while equilibrium quantity decreases, then we know that:

If the demand for heroin is inelastic and heroin users get the money to pay for heroin by committing crimes, policymakers who want to reduce crime should:

A technological innovation in the production of golf balls increases _____, causing the price to _____ and the _____.

Which of the following best characterizes the relationship between the parties to a trade ad gains from the trade?

In The Economics of Nonhuman Societies, economist Gordon Tullock describes the economics hidden in biology. one of the lessons of the book is opportunity cost. In what way does an animal, such as an ant, face opportunity costs?

Suppose that a group of humans build an enormous space ship of fixed size and travel into outer space, never to return. They live on board the ship and allocate all goods on the ship using markets. As the population grows, the price of housing on board the ship will:

Imposing the death penalty on rapists may increase the number of murders, because:

Suppose that Country X is a high cost producer of oil and Country Y is a low cost producer of oil. The citizens of Country X use both oil produced in their own country as well oil produced in Country Y. if the market price of oil decreases, oil production in Country X will _____, and the citizens of Country X will _______.

Which of the following choices correctly illustrates how changes in opportunity costs affect supply?