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Học phần MIE132 - Microeconomics

Mid-Term Exam
Course: Microeconomics
Class: (MIE132)_1
Date of Exam: 09/06/2023
Time: 90 minutes

Please circle in the correct answer!

1) Economics is best defined as the study of how people, businesses, governments, and
societies
A) choose abundance over scarcity.
B) make choices to cope with scarcity.
C) use their infinite resources.
D) attain wealth.
2) When an economist talks of scarcity, the economist is referring to the
A) ability of society to employ all of its resources.
B) ability of society to consume all that it produces.
C) inability of society to satisfy all human wants because of limited resources.
D) ability of society to continually make technological breakthroughs and increase production.
3) The problem of "scarcity" applies
A) only in industrially developed countries because resources are scarce in these countries.
B) only in underdeveloped countries because there are few productive resources in these
countries.
C) only in economic systems that are just beginning to develop because specialized resources
are scarce.
D) to all economic systems, regardless of their level of development.
4) The study of the choices made by individuals is part of the definition of
A) microeconomics.
B) positive economics.
C) macroeconomics.
D) normative economics.
5) When an economy produces more houses and fewer typewriters, it is answering the
________ part of one of the two big economic questions.
A) "what"
B) "how"
C) "where"
D) "for whom"
6) The study of the choices made by individuals is part of the definition of
A) microeconomics.
B) positive economics.
C) macroeconomics.
D) normative economics.
7) The income earned by the people who sell the services of the factor of production
________ is called ________.
A) capital; rent
B) entrepreneurship; wages
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C) land; profit
D) entrepreneurship; profit
8) The production possibilities frontier separates ________.
A) the goods and services that people want from those that they do not want
B) the types of goods that can be attained from those that can't be attained
C) the quantities of goods and services that can be produced from those that cannot be
produced
D) the combinations of goods that people value and those that they don't
9) The production possibilities frontier is the boundary between
A) those combinations of goods and services that can be produced and those that can be
consumed.
B) those resources that are limited and those that are unlimited.
C) those combinations of goods and services that can be produced and those that cannot.
D) those wants that are limited and those that are unlimited.
10) A point outside a production possibilities frontier indicates
A) that resources are not being used efficiently.
B) an output combination that society cannot attain given its current level of resources and
technology.
C) that resources are being used very efficiently.
D) that both goods are characterized by increasing costs.
11) Which of the following is NOT illustrated by a production possibilities frontier?
A) scarcity
B) opportunity cost
C) necessity for choice
D) who gets the goods
12) A production possibilities frontier figure does NOT illustrate
A) the limits on production imposed by our limited resources and technology.
B) the exchange of one good or service for another.
C) opportunity cost.
D) attainable and unattainable points.

13) The figure above shows Roger's production possibilities frontier. Point a is an
________ point and at that point production is ________.
A) attainable; efficient
B) attainable; inefficient
C) unattainable; inefficient
D) unattainable; efficient

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14) The above figure illustrates that if this country wishes to move from its current
production point (labeled "Current") and have 10 more tons of food, it can do this by
producing
A) 10 more tons of clothing.
B) 10 fewer tons of clothing.
C) 5 more tons of clothing.
D) 5 fewer tons of clothing.
15) Moving from one point on the production possibilities frontier to another ________.
A) involves a tradeoff but does not incur an opportunity cost
B) involves an opportunity cost but no tradeoff
C) involves a tradeoff and incurs an opportunity cost
D) involves no tradeoff but it does incur an opportunity cost
16) Any point on a production possibilities frontier (PPF) itself is
A) production efficient.
B) unattainable.
C) inefficient.
D) equitable.
17) Using the production possibilities frontier model, unemployment is described as
producing at a point
A) on the exact middle of the PPF curve.
B) on either end of the PPF curve.
C) inside the PPF curve.
D) outside the PPF curve.
18) Moving from one point on the production possibilities frontier to another ________.
A) involves a tradeoff but does not incur an opportunity cost
B) involves an opportunity cost but no tradeoff
C) involves a tradeoff and incurs an opportunity cost
D) involves no tradeoff but it does incur an opportunity cost
19) When we choose a particular option, we must give up alternative options. The
highest-valued alternative forgone is the ________ of the option chosen.
A) opportunity cost
B) comparative advantage
C) nonmonetary cost
D) absolute advantage
20) Ted can study for his economics exam or go to a concert. He decides to study for his
economics exam instead of going to the concert. The concert he will miss is Ted's
________ of studying for the exam.
A) opportunity cost
B) explicit cost
C) implicit cost
D) discretionary cost
21) An ice cream cone costs $1.50. A can of soda costs $0.75. The relative price of an ice
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cream cone is
A) 1/2 can of soda per ice cream cone, the opportunity cost of an ice cream cone.
B) $1.50, the opportunity cost of a can of soda.
C) 2 cans of soda per soda, the opportunity cost of an ice cream cone.
D) $0.75, the opportunity cost of a can of soda.
22) Demands differ from wants because
A) demands are unlimited, whereas wants are limited by income.
B) wants require a plan to acquire a good but demands require no such plan.
C) wants imply a decision about which demands to satisfy, while demands involve no specific
plan to acquire the good.
D) demands reflect a decision about which wants to satisfy and a plan to buy the good, while
wants are unlimited and involve no specific plan to acquire the good.
23) The "law of demand" is illustrated by a
A) rightward shift of the demand curve.
B) leftward shift of the demand curve.
C) movement along the demand curve.
D) Both answers A and B are correct.
24) When the price of a pizza decreases from $14 to $12
A) the income effect means people buy less pizza.
B) the income effect points out that the total purchasing power of people who buy pizza
increases.
C) the income effect means that the demand for pizza will not change.
D) None of the above answers is correct.
25) Suppose people buy more of good 1 when the price of good 2 falls. These goods are
A) complements.
B) substitutes.
C) normal.
D) inferior.
26) Which of the following shifts the demand curve for hot dogs leftward?
A) an increase in the price of a hot dog bun
B) a decrease in the price of a hot dog bun
C) an increase in the price of a hot dog
D) an increase in the price of a hamburger
27) A change in which of the following alters buying plans for cars but does NOT shift the
demand curve for cars?
A) a 5 percent increase in people's income
B) a 10 percent decrease in the price of car insurance
C) a 20 percent increase in the price of a car
D) an increased preference for walking rather than driving

28) In the above figure, an increase in the quantity demanded is represented by a

movement from point d to
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A) point b only.
B) point c only.
C) point a.
D) both points b and c.
29) Which of the following explains why supply curves slope upward?
A) prices and income
B) increasing marginal cost
C) resources and technology
D) substitutes in production and complements in production
30) The "law of supply" states that, other things remaining the same, firms produce
A) more of a good the less it costs to produce it.
B) less of a good the more it costs to produce it.
C) more of a good the higher its price.
D) less of a good as the required resources become scarcer.
31) Which of the following is NOT held constant while moving along a supply curve?
A) expected future prices
B) the number of sellers
C) the price of the good itself
D) prices of factors of production

32) In the above figure, what is the minimum supply price for the fourth gallon of ice
cream?
A) $2.00
B) $3.00
C) $4.00
D) $5.00
33) If a producer can use resources to produce either good A or good B, then A and B are
A) complements in production.
B) substitutes in production.
C) substitutes in consumption.
D) complements in consumption.
34) Over the past decade technological improvements that have lowered the cost of
producing an automobile have increased
A) both the supply and the demand for automobiles.
B) the supply but not the demand for automobiles.
C) the demand but not the supply of automobiles.
D) neither the supply nor the demand for automobiles.
Price Quantity Price Quantity
(dollars per disc) demanded (dollars per disc) supplied
4 36,000 4 4,000
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8 32,000 8 8,000
12 28,000 12 12,000
16 24,000 16 16,000
20 20,000 20 20,000
24 16,000 24 24,000
28 12,000 28 28,000
32 8,000 32 32,000
36 4,000 36 36,000
35) The above table gives the demand and supply schedules for Blu-ray discs. Suppose
that the price of a Blu-ray disc player increases, resulting in the demand for Blu-ray discs
decreasing by 8,000 units at all prices. What are the new equilibrium quantity and
equilibrium price of Blu-ray discs?
A) 8,000 and $8
B) 16,000 and $16
C) 20,000 and $20
D) 28,000 and $28
36) A good with a horizontal demand curve has a demand
A) with an income elasticity of demand equal to 0.
B) with a price elasticity of demand equal to 0.
C) with a price elasticity of demand equal to infinity.
D) for which there are no substitutes.
37) If the price elasticity of demand for gasoline is 0.8 and the price elasticity of demand
for plane tickets is 2.2 then the demand for gasoline is ________ and the demand for
plane tickets is ________.
A) elastic; inelastic
B) inelastic; elastic
C) elastic; elastic
D) inelastic; inelastic
38) If the elasticity of demand for peaches is 1.76 and the elasticity of demand for apples
is 1.59, then consumers are
A) more sensitive to a change in the price of peaches than they are to a change in the price of
apples.
B) less sensitive to a change in the price of peaches than they are to a change in the price of
apples.
C) more sensitive to a change in the quantity of peaches than they are to a change in the
quantity of apples.
D) less sensitive to a change in the quantity of peaches than they are to a change in the quantity
of apples.
39) If Sam wants to increase her total revenue from her sales of flowers and she knows
that the demand for flowers is price elastic, she should
A) lower her price to increase the demand and shift the demand curve rightward.
B) raise her price because she knows that the quantity demanded will also increase.
C) raise her price because she knows that the percentage decrease in the quantity demanded
will be smaller than the percentage increase in price.
D) lower her price because she knows that the percentage increase in the quantity demanded
will be greater than the percentage decrease in price.
Price Quantity
(dollars per demanded
pound) (pounds)
10 0
9 2
7 6
5 10
3 14

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1 18
0 20
40) The above table gives the demand schedule for Billy Bob's BBQ ribs. The price
elasticity of demand for Billy Bob's ribs over the price range of $3 to $1 is equal to
A) 4.00.
B) 2.00.
C) 0.50.
D) 0.25.

Certified by Faculty of Economics Prepared by

Phuong Huu Khiem