Questions-True/False
Indicate whether the statement is true or false.
1. If the average cost of transporting a passenger on the train from Chicago to St. Louis is $75, it would be irrational for the railroad to allow any passenger to ride for less than $75.
2. Microeconomics is the study of how households and firms make decisions and how they interact in specific markets.
3. If a person chooses self-sufficiency, then she can only consume what she produces.
4. When a seller expects the price of its product to decrease in the future, the seller's supply curve shifts left now.
5. Harry is a computer company executive, earning $200 per hour managing the company and promoting its products. His daughter Quinn is a high school student, earning $6 per hour helping her grandmother on the farm. Harry's computer is broken. He can repair it himself in one hour. Quinn can repair it in 10 hours. Harry's opportunity cost of repairing the computer is lower than Quinn's.
6. All goods and services are sold in perfectly competitive markets.
7. An outcome is said to be efficient if an economy is conserving the largest possible quantity of its scarce resources while still meeting the basic needs of society.
8. An assumption of the production possibilities frontier model is that technology is fixed.
9. Individual demand curves are summed horizontally to obtain the market demand curve.
10. To say people respond to incentives means that people may alter their decisions when the costs and benefits of an action change.
Multiple Choice
Identify the choice that best completes the statement or answers the question.
11. Which of the following statements about trade is false?
a. Trade increases competition.
b. With trade, one country wins and one country loses.
c. Bulgaria can benefit, potentially, from trade with any other country.
d. Trade allows people to buy a greater variety of goods and services at lower cost
12. The goal of an economist who formulates new theories is to
a. provide an interesting framework of analysis, whether or not the framework turns out to be of much use in understanding how the world works.
b. provoke stimulating debate in scientific journals.
c. contribute to an understanding of how the world works.
d. demonstrate that economists, like other scientists, can formulate testable theories.
Remaining questiions are enclosed below in a attached file
Attachment:- Questions.rar