Test Bank for Principles Of Microeconomics, 11th Edition by John Sayre
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Course
Microeconomics
Institution
Microeconomics
Test Bank for Principles Of Microeconomics 11ce 11th Canadian Edition by John Sayre, Alan Morris, Philippe Ghayad. Full Chapters test bank are included with answers (Chapter 1 to 13)
Chapter 1 The Economic Problem
Chapter 2 Demand and Supply: An Introduction
Chapter 3 Demand and Supply: An...
Chapter 01 11ce Micro Verified Answers ✅
1) Positive statements:
A) Are optimistic.
B) Can be verified by empirical data.
C) Are opinions.
D) Are based on people's beliefs and value systems and cannot be verified by facts.
2) Normative statements:
A) Can be verified by empirical data.
B) Refer only to numbers.
C) Are based on people's beliefs and value systems and cannot be verified by facts.
D) Are always true.
3) The statement, "the governments spends too much money on healthcare", can be defined as:
A) A normative statement.
B) A positive statement.
C) Both a positive and a normative statement.
D) Neither a normative nor a positive statement.
4) The statement, "the governments spends 24% of its budget on healthcare", can be defined as:
A) A normative statement.
B) A positive statement.
C) Both a positive and a normative statement.
D) Neither a normative nor a positive statement.
5) The statement, "water freezes at 40 degrees Celsius", can be defined as:
A) A normative statement.
B) A positive statement.
C) Both a positive and a normative statement.
D) Neither a normative nor a positive statement.
E) A correct statement.
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,6) What do economists mean when they say that the economy faces scarcity?
A) There are fewer resources available than there were in the 1960s.
B) It is quite evident that the world is running out of resources.
C) The economy is producing far below its capacity to produce.
D) The resources available are not sufficient to produce all that everyone wants.
7) What do economists assume is true about human wants?
A) They are easily defined.
B) That we are on the verge of being able to satisfy them.
C) They are unlimited.
D) They haven't changed much over the centuries.
8) Which of the following terms describes the next best alternative that must be sacrificed as a
result of making a particular choice?
A) Microeconomics.
B) Opportunity cost.
C) Macroeconomics.
D) The law of increasing costs.
E) Scarcity.
9) What is the opportunity cost of a particular product?
A) The price paid for that product.
B) The value put on that product by the person who bought it.
C) The value of the next-best alternative that is given up as a result of buying that
particular product.
D) The combined value of all the other alternatives that are given up as a result of buying
that particular product.
10) Gwen had only $10 yesterday. She was uncertain whether to go out for lunch or to buy beer.
In the end, she bought beer. Which of the following statements is correct?
A) The choice of the beer and not lunch is an example of constant costs.
B) The cost of buying beer is less than lunch.
C) The opportunity cost of beer is lunch.
D) The opportunity cost of beer is $10.
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,11) Which of the following is correct?
A) Scarcity forces choice which involves opportunity costs.
B) Choice causes scarcity which involves increasing costs.
C) Choice causes scarcity which involves opportunity costs.
D) Scarcity forces choice which involves increasing costs.
12) What can we say is true as a result of people engaging in voluntary trade?
A) One person gains and the other loses.
B) One person gains while there is a neutral effect on the other person.
C) Both people gain.
D) Neither person gains.
13) The maximum production possible in Rome and in Cathay are as follows:
Rome 40 bread Or 20 figs
Cathay 20 bread Or 40 figs
13.1) If each country is self-sufficient (no trade) and each allocates one half of its resources to
producing each of the two products, what will be the output in each country?
A) 40 bread and 20 figs in Rome and 20 bread and 40 figs in Cathay.
B) 40 bread and 0 figs in Rome and 20 bread and 0 figs in Cathay.
C) 0 bread and 20 figs in Rome and 0 bread and 40 figs in Cathay.
D) 20 bread and 10 figs in Rome and 10 bread and 20 figs in Cathay.
13.2) If each country is self-sufficient (no trade) and each allocates one half of its resources to
producing each of the two products, what is the combined output in the two counties?
A) 60 bread and 60 figs.
B) 60 bread and 0 figs.
C) 0 bread and 60 figs.
D) 30 bread and 30 figs.
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, 13.3) If each country specializes in the production of what it does best and trades with the
other, what is the combined output?
A) 20 bread and 20 figs.
B) 30 bread and 30 figs.
C) 40 bread and 40 figs.
D) 60 bread and 60 figs.
13.4) If each country specializes in the production of what it does best, what are the gains from
trade?
A) There are no gains.
B) 20 bread.
C) 20 figs.
D) 10 bread and 10 figs.
14) What fundamental question is implied by the following statement: Should scarce resources
be devoted to persuading people to quit smoking or to developing a less harmful form of
tobacco?
A) What to produce?
B) How to produce?
C) For whom?
D) How much competition?
E) How much demand?
15) What fundamental question is implied by the following statement: The appropriate
technology in one country can be quite different from the appropriate technology in another
country.
A) What to produce?
B) How to produce?
C) For whom?
D) How much competition?
E) How much demand?
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