微观经济学英文选择题练习.ppt

To arbitrage a price difference between two markets, you should: A) sell in the low-price market and buy in the high-price market. B) buy in the low-price market and sell in the high-price market. C) sell in both markets to capture a lower average market price. D) none of the above Answer: B The price of a taco was $0.29 in 1970 and $0.99 in 1993. The CPI was 38.8 in 1970 and 144.0 in 1993. The 1993 price of a taco in 1970 dollars is: A) $0.08. B) $0.27. C) $0.34. D) $3.67. Answer: B Sugar can be refined from sugar beets. When the price of those beets falls, A) the demand curve for sugar would shift right. B) the demand curve for sugar would shift left. C) the supply curve for sugar would shift right. D) the supply curve for sugar would shift left. Answer: C Last year, the world demand curve for copper shifted rightward due to continued economic growth in China and other emerging economies. Also, the supply curve for copper shifted leftward due to strikes and other labor disruptions at some of the copper mines. As a result, we observed: A) higher equilibrium copper prices and unambiguously lower quantities. B) higher equilibrium copper prices and unambiguously higher quantities. C) higher equilibrium copper prices and either higher or lower quantities. D) lower equilibrium copper prices and either higher or lower quantities. Answer: C Which of the following statements about the diagram below is true? A) Demand is infinitely elastic. B) Demand is completely inelastic. C) Demand becomes more inelastic as price declines. D) Demand becomes more elastic as price declines. Answer: C If two goods are substitutes, the cross price elasticity of demand must be A) negative. B) positive. C) zero. D) infinite. Answer: B A simple linear demand function may be stated as Q = a - bP + cI where Q is quantity demanded, P is the product price, and I is consumer income. To compute an appropriate value for c, we can use observed values for Q and I and then set the estimated income elasti