微观经济学自主习一(1-6章).docVIP

1-6 True/False Indicate whether the statement is true or false. ____ 1. Equality refers to how the pie is divided, and efficiency refers to the size of the economic pie. ____ 2. An individual deciding how to allocate her limited time is dealing with both scarcity and trade-offs. ____ 3. An increase in the marginal cost of an activity necessarily means that people will no longer engage in any of that activity. ____ 4. Points inside the production possibilities frontier represent inefficient levels of production. ____ 5. When a variable that is named on an axis of a graph changes, the curve shifts. ____ 6. Trade can benefit everyone in society because it allows people to specialize in activities in which they have a comparative advantage. ____ 7. Goods produced abroad and sold domestically are called exports and goods produced domestically and sold abroad are called imports. ____ 8. If something happens to alter the quantity supplied at any given price, then we move along the fixed supply curve to a new quantity supplied. ____ 9. The price elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in price. ____ 10. When demand is inelastic, a decrease in price increases total revenue. ____ 11. Price elasticity of supply measures how much the quantity supplied responds to changes in the price. ____ 12. A price floor set below the equilibrium price causes a surplus in the market. ____ 13. The goal of the minimum wage is to ensure workers a minimally adequate standard of living. ____ 14. Who bears the majority of a tax burden depends on the relative elasticity of supply and demand. Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 15. Approximately what percentage of the worlds economies experience scarcity? a. 25% b. 50% c. 75% d. 100% ____ 16. Suppose your college institutes a new policy requiring you to pay for a permit to par