Intermediate Microeconomics
Mock Exam
Course Introduction
Intermediate Microeconomics builds upon introductory microeconomic principles to provide a deeper understanding of how individuals and firms make decisions regarding the allocation of scarce resources. The course covers consumer theory, production and cost functions, market structures including perfect competition, monopoly, and oligopoly, and explores the implications of market failures such as externalities and public goods. Analytical emphasis is placed on mathematical modeling and graphical analysis, preparing students to rigorously examine real-world economic issues and policy debates.
Recommended Textbook
Microeconomics 10th Edition by William Boyes
Available Study Resources on Quizplus
22 Chapters
2295 Verified Questions
2295 Flashcards
Source URL: https://quizplus.com/study-set/3617 Page 2
Chapter 1: The Wealth of Nations: Ownership and Economic Freedom
Available Study Resources on Quizplus for this Chatper
87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/71803
Sample Questions
Q1) The primary goal of economics is to help people make money.
A)True
B)False
Answer: False
Q2) Labor resources include:
A)skilled workers but not unskilled workers.
B)unskilled workers but not skilled workers.
C)a robot.
D)education and training of workers.
E)coffee breaks.
Answer: D
Q3) Choices must be made because of scarcity; people do not have enough time or money to get everything they want.
A)True
B)False
Answer: True
Q4) The opportunity cost of going to the movies is always the same for everyone.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Scarcity and Opportunity Costs
Available Study Resources on Quizplus for this Chatper
87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/71804
Sample Questions
Q1) Which of the following is an example of opportunity cost?
A)The Chinese food that you give up when you choose to eat Italian food.
B)The tuition that you pay to attend college.
C)For a professor of economics, the pleasure that he or she derives from teaching economics.
D)Sweets given up by a person who would never eat them even if he or she could.
E)The price paid for a ticket when you go for a movie.
Answer: A
Q2) If an economy is operating at a point outside the PPC, either the society has resources that are not being fully used or production is not efficient.
A)True
B)False
Answer: False
Q3) An economy's PPC illustrates the extent to which the economy consumes what it produces.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: Markets and the Price System
Available Study Resources on Quizplus for this Chatper
96 Verified Questions
96 Flashcards
Source URL: https://quizplus.com/quiz/71805
Sample Questions
Q1) In a market where the price is restricted by price floors or price ceilings,
A)all sellers will be able to sell everything they produce.
B)surpluses and shortages will exist.
C)all buyers will get what they want.
D)disequilibrium will automatically correct itself.
E)surpluses and shortages will put pressure on the price to move to its equilibrium.
Answer: B
Q2) A price control always benefits consumers.
A)True
B)False
Answer: False
Q3) Refer to Table 3.5. If government imposes a price floor of $2:
A)the price floor will not have an effect.
B)the price will fall to $1 because producers will be forced to incur losses.
C)demand will increase.
D)a surplus will result equal to 20 units.
E)a shortage will result equal to 20 units.
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
5
Chapter 4: The Aggregate Economy
Available Study Resources on Quizplus for this Chatper
61 Verified Questions
61 Flashcards
Source URL: https://quizplus.com/quiz/71806
Sample Questions
Q1) Which of the following is true of investment spending in the U.S. economy?
A)Investment spending in 2009 was higher than in 2006.
B)Investment spending was almost double of household spending.
C)Businesses had reduced expenditures on capital goods in 2008 and 2009.
D)Investment spending exhibited a more or less steady increase between 1959 and 2009.
E)Investment spending fluctuated relatively less than consumption.
Q2) National economic policies are usually set by the local government in the U.S., making it the focus of economic discussions.
A)True
B)False
Q3) According to the World Bank, the high-income oil-exporting nations like Libya, Saudi Arabia, Kuwait, and the United Arab Emirates:
A)are considered to be still-developing countries.
B)are the major trade partners of the U.S.
C)are considered as underdeveloped economies.
D)have highly interdependent economies.
E)are considered highly-developed countries.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Using Economics to Understand the World
Around You
Available Study Resources on Quizplus for this Chatper
68 Verified Questions
68 Flashcards
Source URL: https://quizplus.com/quiz/71807
Sample Questions
Q1) Which of the following will possibly cause a leftward shift in the production possibility curve, representing good X and good Y?
A)A decrease in a country's GDP
B)An increase in the price of good X
C)An increase in the price of good Y
D)A decrease in the price of good Y
E)A decrease in the price of good X
Q2) Refer to figure 5.3. Which of the following is true?
A)The labor market equilibrium is represented by the price and quantity combination of $6 and Q.
B)The labor market equilibrium is represented by the price and quantity combination of $6 and Q<sub>I</sub>.
C)The labor market equilibrium is represented by the price and quantity combination of $4 and Q.
D)The labor market equilibrium is represented by the price and quantity combination of $4 and Q<sub>II</sub>.
E)The labor market equilibrium is represented by the price and quantity combination of $8 and Q.
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 6: Elasticity: Demand and Supply
Available Study Resources on Quizplus for this Chatper
133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/71808
Sample Questions
Q1) Demand is price-elastic at the top portion of a straight-line downward-sloping demand curve.
A)True
B)False
Q2) Economists have said that deregulation of the electric utility industry might lead to increased prices in the short run, but prices will fall in the long run. In this context:
A)the short run means the middle of next year.
B)the short run means the period after all adjustments have been made, and the quantities of all resources have been varied as necessary.
C)the long run means after all adjustments have been made, the quantities of all resources have been varied as necessary, and new market entrants begin producing electricity.
D)the short run means the period after new firms begin producing electricity.
E)the long run means approximately ten years.
Q3) The coefficient of the price elasticity of demand is always negative.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
8
Chapter 7: Demand: Consumer Choice
Available Study Resources on Quizplus for this Chatper
142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/71809
Sample Questions
Q1) If all consumers had identical preferences, then their marginal utility schedules would be the same.
A)True
B)False
Q2) In labor markets, a change in the wage rate has both an income and a substitution effect. An increase in wages causes an increase in real income but at the same time it increases the relative price of leisure for the worker. If an increase in wage rate causes an individual to work less, _____.
A)the income effect dominates the substitution effect
B)the substitution effect dominates the income effect
C)the substitution and income effects cancel each other out
D)then leisure will be referred to as an inferior good
E)the increase in wage rates will cause an increase in the supply of labor
Q3) The principle that people would rather leave things as they are is called _____.
A)status quo
B)stand still
C)stagnation
D)pause
E)quo warranto
To view all questions and flashcards with answers, click on the resource link above.
Page 9
Chapter 8: Supply: the Costs of Doing Business
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/71810
Sample Questions
Q1) When a firm grows to such an extent that it is unable to coordinate between its employees properly it is likely to experience economies of scale.
A)True
B)False
Q2) If the total cost of producing 6 units is $228 and the total cost of producing 7 units is $245, what is the marginal cost of producing the seventh unit?
A)$35
B)$245
C)$3
D)$38
E)$17
Q3) The minimum efficient scale is the level of output where the short-run average-total-cost curve reaches its minimum point.
A)True
B)False
Q4) Every firm has to bear its fixed costs even when it produces nothing. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Profit Maximization
Available Study Resources on Quizplus for this Chatper
121 Verified Questions
121 Flashcards
Source URL: https://quizplus.com/quiz/71811
Sample Questions
Q1) Refer to Table 9.3. The economic profit of Max Computers is:
A)$1,000 million.
B)-$4,000 million.
C)$10,000 million.
D)-$5,000 million.
E)$5,000 million.
Q2) The daily vegetable market is an example of an oligopoly market structure.
A)True
B)False
Q3) Under imperfect competition, a firm's:
A)demand curve lies below its marginal revenue curve.
B)demand curve lies above its marginal revenue curve.
C)demand curve coincides with its marginal revenue curve.
D)demand curve coincides with its marginal cost curve.
E)demand curve coincides with its average cost curve.
Q4) The greater the differentiation among the products of monopolistically competitive firms, the lesser is the price-elasticity of demand.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Perfect Competition
Available Study Resources on Quizplus for this Chatper
135 Verified Questions
135 Flashcards
Source URL: https://quizplus.com/quiz/71812
Sample
Questions
Q1) From a social viewpoint, when price = marginal cost:
A)the economy as a whole would be better off if more was produced.
B)the economy as a whole would be better off if less was produced.
C)firms would be better off by producing less.
D)the economic efficiency would be attained as a whole.
E)the consumers would be better by consuming less.
Q2) If losses are incurred in a competitive industry, then over the long-run we can expect a greater quantity supplied, because market price will rise.
A)True
B)False
Q3) Refer to Figure 10.2. If the market price falls to $10, the firm would produce: A)nothing.
B)15 units.
C)5 units.
D)10 units.
E)20 units.
Q4) A perfectly competitive firm faces a downward sloping market demand curve.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Monopoly
Available Study Resources on Quizplus for this Chatper
118 Verified Questions
118 Flashcards
Source URL: https://quizplus.com/quiz/71813
Sample Questions
Q1) A monopolist enjoys the least market power compared to the other market structures.
A)True
B)False
Q2) Refer to Figure 11.6. Assume that marginal costs are constant at $2,500 and fixed costs are zero. Under a monopoly, consumer surplus would be:
A)$100,000.
B)$500,000.
C)$300,000.
D)$250,000.
E)$200,000.
Q3) If a monopolist is producing at that output where price equals average variable cost in the short run, then it is earning a negative profit.
A)True
B)False
Q4) A monopolist produces at the minimum point of the average total cost curve in the long run.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Monopolistic Competition and Oligopoly
Available Study Resources on Quizplus for this Chatper
114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/71814
Sample Questions
Q1) If new firms enter a monopolistically competitive industry, the demand facing a typical firm increases.
A)True
B)False
Q2) Monopolistic competition is similar to perfect competition in that:
A)there are only a few firms in the market.
B)the entry into and exit from the market is easy.
C)there are significant barriers to entry in the market.
D)each firm sells a homogeneous product.
E)each firm differentiates its product through advertising.
Q3) According to Table 12.2, if firm A follows its dominant strategy but firm B does not, then firm A earns a profit of:
A)$50.
B)$40.
C)$60.
D)$45.
E)$42.
Q4) In an oligopoly market, firms do not produce identical product.
A)True
B)False
Page 14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Markets and Government
Available Study Resources on Quizplus for this Chatper
113 Verified Questions
113 Flashcards
Source URL: https://quizplus.com/quiz/71815
Sample
Questions
Q1) Why do market failures arise in case of public goods?
A)The quantity produced is much more than is actually required by the people.
B)The quality of these goods is not good enough.
C)The quantity produced is too less from the society's point of view.
D)The government wastes a lot of resources for producing a public good.
E)The users of such goods are required to pay a high price for these goods.
Q2) Under a marketable permit system, if the government reduces the quantity of permits, the price of each permit will increase.
A)True
B)False
Q3) A pollution tax has the effect of reducing the costs of production for a firm, leading to a rightward shift of the supply curve.
A)True
B)False
Q4) The social cost is negative in case of a negative externality.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
15
Chapter 14: Antitrust and Regulation
Available Study Resources on Quizplus for this Chatper
88 Verified Questions
88 Flashcards
Source URL: https://quizplus.com/quiz/71816
Sample Questions
Q1) What is the total social surplus prior to regulation, in Figure 14.2?
A)Area 0FGQ<sub>1</sub>.
B)Area BEP<sub>1</sub>.
C)Area CEP<sub>1</sub>.
D)Area FGEP<sub>1</sub>.
E)Area BEC.
Q2) Being a monopoly or attempting to monopolize act as sufficient evidence that lead to a guilty verdict under the rule of reason.
A)True
B)False
Q3) When a monopoly is regulated it is required to sell lower output at a lower price.
A)True
B)False
Q4) To avoid driving a natural monopolist into bankruptcy, regulatory commissions:
A)allow the monopolist to enjoy an economic profit.
B)do not allow the monopolist to make an accounting profit.
C)subsidize the monopolist to help it break even.
D)allow the monopolist to earn a fair rate of return.
E)allow the monopolist to temporarily shut down.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Resource Markets
Available Study Resources on Quizplus for this Chatper
110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/71817
Sample Questions
Q1) After hiring 151 units of the variable input (say labor) a firm determines the marginal fixed cost (MFC) to be $0.33 and the marginal revenue product (MRP) to be $0.30. The firm should:
A)increase its production.
B)increase the use of labor.
C)decrease the use of labor.
D)produce 151 units.
E)produce 33 units of the output.
Q2) The negative slope of the demand curve of a resource indicates an inverse relationship between the price of the resource and the quantity demanded.
A)True
B)False
Q3) A firm under any market structure maximizes profits at a point where:
A)marginal revenue product is greater than marginal factor cost.
B)marginal revenue product is equal to marginal factor cost.
C)marginal revenue product is equal to zero.
D)marginal factor cost is equal to zero.
E)marginal revenue product is less than marginal factor cost.
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: The Labor Market
Available Study Resources on Quizplus for this Chatper
116 Verified Questions
116 Flashcards
Source URL: https://quizplus.com/quiz/71818
Sample Questions
Q1) According to Figure 16.2, assume that the market is at an initial equilibrium in which the labor supply is S<sub>1</sub> and the labor demand is D<sub>1</sub>. The labor supply curve shifts from S<sub>1</sub> to S<sub>2</sub> but the wage remains unchanged at its previous equilibrium level. Which of the following is true?
A)The economy is still in equilibrium.
B)There is a shortage of 20 workers.
C)There is a shortage of 30 workers.
D)There is a surplus of 30 workers.
E)There is a surplus of 20 workers.
Q2) The policy of comparable worth has been more successful in the public sector than in the private sector.
A)True
B)False
Q3) Wage differentials exist because not all workers and all jobs are alike.
A)True
B)False
Q4) An example of human capital is the purchase of a computer to help accountants.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: The Capital Market
Available Study Resources on Quizplus for this Chatper
110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/71819
Sample Questions
Q1) The demand curve for capital:
A)shows the positive relation between capital usage and the quantity of capital demanded.
B)shows the positive relation between aggregate output and the quantity of capital demanded.
C)shows the negative relation between rate of inflation and the quantity of capital demanded.
D)shows the positive relation between technological change and the quantity of capital demanded.
E)shows the negative relation between price of capital and the quantity of capital demanded.
Q2) The S&P 500 index includes the stocks of 500 largest companies in the U.S.
A)True
B)False
Q3) When you purchase a bond in the secondary market, you are lending money directly to the borrower.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: The Land Market and Natural Resources
Available Study Resources on Quizplus for this Chatper
55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/71820
Sample Questions
Q1) In the market for crude oil, everything held constant, if rate of interest of simple bank accounts or interest-bearing investments decline, then:
A)the consumption of crude oil declines in the present period.
B)the extraction of crude oil will increase today.
C)the price of the crude oil in the international market falls in the present period.
D)greater research and developments are conducted to locate new sites of crude oil in the present period.
E)the extraction of crude oil will fall in the present period.
Q2) Which of the following actions can be categorized as rent seeking?
A)Increase in the income tax rates by the government
B)Lobbying efforts of individuals or groups to gain favors from the government
C)Profit maximizing firms charging a price greater than their marginal costs
D)Export of goods from developing to developed countries
E)Government intervention in the real estate market
Q3) The supply curve of an exhaustible resource shifts up as the marginal cost of extracting the resource increases.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Current Issues: Income, Income Distribution,
Poverty, and Government Policy
Available Study Resources on Quizplus for this Chatper
85 Verified Questions
85 Flashcards
Source URL: https://quizplus.com/quiz/71821
Sample Questions
Q1) Rising income inequality is driven by:
A)an increase in employment in the manufacturing sector of an economy.
B)a progressive tax structure.
C)a rising demand for unskilled, cheap labor.
D)a technological advancement.
E)a fall in capital's share of national income.
Q2) The size of a family or household does not affect the data used to measure income inequality.
A)True
B)False
Q3) The measures of absolute poverty:
A)are inversely related to the degree of income equality in a country.
B)are directly related to the degree of income equality in a country.
C)depend on the prosperity of the poorest 50 percent of population.
D)determine the degree of income inequality.
E)are completely independent of the degree of income inequality.
Q4) The poverty threshold is often determined in terms of the expenditure on meals that meet a predetermined nutritional standard.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: World Trade Equilibrium
Available Study Resources on Quizplus for this Chatper
112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/71822
Sample Questions
Q1) The export supply and import demand curves measure the domestic shortage and surplus, respectively, at different world prices.
A)True
B)False
Q2) A country has a comparative advantage when the opportunity cost of producing a good in terms of:
A)the monetary value of other forgone goods is lower than that of other nations.
B)the monetary value of other forgone goods is greater than that of other nations.
C)forgone output of other goods is higher than that of other nations.
D)forgone output of other goods is lower than that of other nations.
E)forgone output of other goods is equal to that of other nations.
Q3) International trade permits greater consumption than would be possible from the domestic production alone.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: International Trade Restrictions
Available Study Resources on Quizplus for this Chatper
109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/71823
Sample Questions
Q1) In the United States, a "buy American" act was passed in 1933 to create larger markets for domestic goods.
A)True
B)False
Q2) Refer to Figure 21.1. If the government imposes a tariff such that the price of the good in the domestic market is P<sub>2</sub> while the international price is P<sub>1,</sub> the dollar value of the tariff is equal to:
A)P<sub>3</sub> - P<sub>1</sub>.
B)P<sub>2 -</sub> P<sub>3</sub>.
C)P<sub>2</sub> - P<sub>1</sub>.
D)P<sub>1</sub> - P<sub>2</sub>.
E)P<sub>1</sub> - P<sub>3</sub>.
Q3) In a free trade area, member nations have no trade barriers among themselves, but are free to set their own trade policies toward nonmembers.
A)True
B)False
Q4) Every country imposes tariffs on at least some imports.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 22: Exchange Rates and Financial Links Between Countries
Available Study Resources on Quizplus for this Chatper
130 Verified Questions
130 Flashcards
Source URL: https://quizplus.com/quiz/71824
Sample Questions
Q1) Currency speculators are traders who seek to profit from a(n):
A)shift in global demand and supply patterns.
B)increase in the price of oil.
C)sudden shift in interest rates.
D)exchange rate change by selling the currency expected to appreciate and buying the currency expected to depreciate.
E)exchange rate change by selling the currency expected to depreciate and buying the currency expected to appreciate.
Q2) The focal point of the Bretton Woods system was the:
A)Great Britain pound.
B)institution of special drawing rights.
C)U.S. dollar.
D)gold reserve.
E)management of commodity money.
Q3) Suppose that the price of an ounce of gold is 120 pesos in Mexico and 2,400 yen in Japan. Then the Japanese yen is worth two hundred times the value of a Mexican peso.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 24