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Microeconomics Unit 1 Review Flashcards | StudBud
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Microeconomics Unit 1 Review
Microeconomics Unit 1 Review
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Questions
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Answers
1
In which type of economy would we expect that the government sets prices for candy?
market
traditional
command
2
Which consumption bundle is on Omar's consumption possibilities curve?
5 cheese and 3 DVD
10 cheese
3 cheese and 4 DVD
1 cheese and 1 DVD
3
Sienna drinks a third coffee and gains 8 utility. She then drinks a fourth. We might expect
she gains less than 8 utility for the fourth
she gains 10 utility for the fourth
that she gains 8 utility for the fourth as well
she'll have to use the restroom soon
4
In which type of economy is bartering and trading the norm?
traditional
market
command
5
The fallacy of composition states that:
generalizations relevant to microecon never pertain to macro
expectations give rise to self-fulfilling prophecies
generalizations about individuals must pertain to the group
economic goals are always incompatible with one another
6
If we're building things at the lowest possible per-unit cost, we're being
productively efficient
ceteris paribus
kinda' cheap
ruthlessly efficient
7
In which type of economy do individual firms determine what to produce?
command
communist
traditional
market
8
We should do something so long as MB
≤ MC
> MC
≥ MC
< MC
9
The U.S. stock market has fallen recently in large part because
China's economy is stumbling
unemployment is rising quickly
The Fed said it will lower interest rates
U.S. firms are showing poor profits
10
If something is scarce, it means that
all of it is being used efficiently
it's always expensive
there isn't enough of it to meet it's possible uses
it's rare
11
Which chart could show the result of a new technique that increases efficiency at making tea?
C
D
A
B
12
You have five hours to study this weekend for two upcoming tests. It would be best to study:
Math for five hours
Econ for two hours and math for three hours
Econ for three hours and math for two hours
Econ for five hours
13
What is the opportunity cost of increasing the number of movies produced from five to seven?
10 TV shows
There is none
10
2 TV shows
14
If your income increases, what happens to your budget constraint line?
nothing
it shifts left
it shifts right
it rotates
15
Bill builds buildings and billfolds. He injures his arm. What happens to his PPC?
It shifts left.
It shifts along the building axis, but not the billfold axis
It shifts along the billfold axis, but not the building axis
It shifts right.
16
If an economy is producing the amount of goods that are desired by society we say it is
allocatively efficient
coefficient
coldly efficient
productively efficient
17
Whenever a society gives up current consumption to invest in capital goods:
the price of products today will be lower
the less capital can be produced in the future
the more society can consume in the future
the less society can consume next year
18
Suppose we consume more more slice of pizza and the marginal utility is zero. The total utility
must be at its lowest point
must be falling
must still be rising
must be at its maximum
19
Which of the following is an example of a capital resource?
a nail
chocolate cake
a new employee
oil
