Microeconomics: Set 1

The scarcity problem:

The study of economics is primarily concerned with:

Indicate whether the following statement applies to microeconomics or macroeconomics: The unemployment rate in the United States was 4.4 percent in 2017, while it was 9.6 percent in 2010.

Indicate whether the following statement applies to microeconomics or macroeconomics: A U.S. software firm discharged 15 workers last month and transferred the work to India.

Indicate whether the following statement applies to microeconomics or macroeconomics: An unexpected freeze in central Florida reduced the citrus crop and caused the price of oranges to rise.

Indicate whether the following statement applies to microeconomics or macroeconomics: Total employment in the United States is expected to reach 161.0 million in 2022, up 15.6 million from the 2012 level of 145.4 million.

Indicate whether the following statement applies to microeconomics or macroeconomics: Last week, Wells Fargo Bank lowered its interest rate on business loans by one-half of 1 percentage point.

Indicate whether the following statement applies to microeconomics or macroeconomics: In July 2018, the Consumer Price Index (CPI) for All Urban Consumers increased 0.2 percent seasonally adjusted; rising 2.9 percent over the last 12 months, not seasonally adjusted.

The opportunity cost of constructing a new public highway is the:

Tammie makes $150 a day as a bank clerk. She takes off two days off work without pay to fly to another city to attend the concert of her favorite music group. The cost of transportation for the trip is $250. The cost of the concert ticket is $50. The opportunity cost of Tammie's attending the concert is:

Kara was out jogging and despite being tired, decided to run one more mile. Based on her actions, economists would conclude that Kara:

Ben says that "An increase in the tax on beer will raise its price." Holly argues that "Taxes should be increased on beer because college students drink too much." We can conclude that:

The vertical intercept of line (2) on the graph is:

The linear equation for line (1) on the graph is:

Which is considered a factor of production?

Refer to the table. In moving from possibility C to D, the opportunity cost of a unit of steel in terms of a unit of wheat is:

Refer to the table. In moving stepwise from possibility A to B to C...to F, the cost of a unit of steel in terms of wheat:

The term laissez-faire suggests that:

Which of the following is a fundamental characteristic of the market system?

The competitive market system:

Specialization in production is important primarily because it:

Refer to the data, which show all available techniques for producing 20 units of a particular commodity: In view of the indicated resource prices, the economically most efficient production technique(s) is (are) technique(s):

Refer to the data, which show all available techniques for producing 20 units of a particular commodity: Assuming that the firm is motivated by self-interest and that the 20 units which can be produced with each technique can be sold for $2 per unit, the firm will:

The simple circular flow model shows that:

The law of demand states that, other things equal:

A demand curve shows the relationship between:

In the past few years, the demand for donuts has greatly increased. This increase in demand might best be explained by:

Which of the following will not cause the demand for product K to change?

If the price of product L increases, the demand curve for close-substitute product J will:

If Z is an inferior good, an increase in money income will shift the:

College students living off-campus frequently consume large amounts of ramen noodles and boxed macaroni and cheese. When they finish school and start careers, their consumption of both goods frequently declines. This suggests that ramen noodles and boxed macaroni and cheese are:

A recent study found that an increase in the Federal tax on beer (and thus an increase in the price of beer) would reduce the demand for marijuana. We can conclude that:

The law of supply indicates that, other things equal:

A leftward shift of a product supply curve might be caused by:

An improvement in production technology will:

An increase in the excise tax on cigarettes raises the price of cigarettes by shifting the:

Refer to the table. If demand is represented by columns (3) and (2) and supply is represented by columns (3) and (5), equilibrium price and quantity will be:

Refer to the table. Suppose that demand is represented by columns (3) and (2) and supply is represented by columns (3) and (5). If the price were artificially set at $9:

Refer to the diagram. A surplus of 160 units would be encountered if the price was:

Refer to the diagram. A shortage of 160 units would be encountered if price was: