Microeconomics Questions

21.What is most likely behind the growing wage gap in the United States?

Select one:

a. A decrease in the real value of the U.S. minimum wage and taxes on

luxury goods

b. Expansion of food assistance programs and limited job opportunities for

people without a college degree

c. Limited job opportunities for people without a college degree and a

decrease in the real value of the U.S. minimum wage

d. Taxes on luxury goods and expansion of food assistance programs

e. None of the above

22.Opportunity cost may be different from one person to the next,

depending on their personal tastes and preferences.

Select one:

True?

False?

23.Complete the sentence: In the Indifference Curve Analysis, a consumer

maximizes utility by choosing that combination of goods _______.

Select one:

a. At which the budget line is below the highest indifference curve

b. At which the budget line is above the highest indifference curve

c. Where the marginal decision rule is violated

d. At which the consumer's marginal rate of substitution is equal to the

price ratios of the two goods

e. None of the above.

24.If two firms dominate an industry the market is known as:

Select one:

a. Monopolistic competition

b. Competitively monopolistic

c. Duopoly

d. Oligopoly

e. Monopoly

Good A Good B

Quantity Total Utility Quantity Total Utility

1 20 1 21

2 35 2 35

3 45 3 44

4 48 4 47

5 50 5 48

25.Which bundle of goods satisfies the equimarginal principle?

Select one:

a. 5 units of Good A and 5 units of Good B

b. 4 units of Good A and 3 units of Good B

c. 1 unit of Good A and 1 Unit of Good B

d. 5 units of Good A and 4 units of Good B

e. 4 units of Good A and 4 units of Good B

26.The change in consumption of a good that results from the implicit

change in income, which has been caused by a price change, is called

__________.

Select one:

a. The substitution eect

b. The marginal utility

c. Income compensated price change

d. Income eect

e. Equimarginal Principle

27.Fixed costs do not change with the level of output.

Select one:

True?

False?

28.Based on the table below, P1 and P2 indicate the prices of Good 1 and

Good 2, respectively. If a consumer consumes a bundle of 3 units of

Good A and 3 units of Good B and has no money left over, what is the

consumer's budget constraint?

Good A Good B

P1 = 2 P2 = 2

Quantity Total Utility Quantity Total Utility

1 20 1 9

2 30 2 29

3 39 3 39

4 46 4 43

5 50 5 44

Select one:

a. 0

b. 3

c. 6

d. 9

e. 12

29.In the above graph, there is a production possibility frontier for two

countries, Y and Z. Which Point is both ineffcient and attainable for

country Y?

https://www.coursehero.com/file/39613209/2pdf/ Question 29 Answer saved Marked out of 1.00 Capital Goods E D A m was C Consumer Goods In the above graph, there is a production possibility frontier for two country Y? countries, Y and Z. Which Point is both inefficient and attainable for Select one: dy O a. A ed via Co This b. B CC d. D e. E