1、microeconomics studies the allocation of a、decision makers. b、scarce resources. c、models. d、unlimited resources.
2、most microeconomic models assume that decision makers wish to a、make themselves as well off as possible. b、act selfishly. c、make others as well off as possible. d、none of the above.
3、what links the decisions of consumers and firms in a market? a、the government. b、prices. c、coordination officials. d、microeconomics.
4、economic models are most often tested a、using computer simulations. b、using data from the distant past. c、using data from the real world. d、using logic alone.
5、which of the statements below is/are normative? a、economists need to include more reality in their models. b、economists will use a model until it is refuted by someone. c、microeconomists study economic growth. d、b and c
6、according to the law of demand, the demand curve for a good will a、shift leftward when the price of the good increases. b、shift rightward when the price of the good increases. c、slope downward. d、slope upward.
7、if the price of automobiles were to increase substantially, the demand curve for gasoline would most likely a、shift leftward. b、shift rightward. c、remain unchanged. d、become steeper.
8、the expression "increase in quantity supplied" is illustrated graphically as a a、leftward shift in the supply curve. b、rightward shift in the supply curve. c、movement up along the supply curve. d、movement down along the supply curve.
9、a market equilibrium occurs a、only with government regulation. b、only because of the profit motive of firms. c、only because of the complacency of consumers. d、through the interaction of self-interested consumers and producers.
10、if oranges were found to cure cancer, a、the equilibrium price of apples would likely fall. b、the equilibrium price of oranges would likely increase in the near term. c、the equilibrium quantity of oranges would likely increase. d、all of the above.
11、the change in price that results from a leftward shift of the supply curve will be greater if a、the demand curve is relatively steep than if the demand curve is relatively flat. b、the demand curve is relatively flat than if the demand curve is relatively steep. c、the demand curve is horizontal than if the demand curve is vertical. d、the demand curve is horizontal than if the demand curve is downward sloping.
12、a vertical demand curve for a particular good implies that consumers are a、sensitive to changes in the price of that good. b、not sensitive to changes in the price of that good. c、irrational. d、not interested in that good.
13、suppose the demand function for a good is expressed as q = 100 - 4p. if the good currently sells for $10, then the price elasticity of demand equals a、-1.5. b、-0.67. c、-4 d、-2.5.
14、the price elasticity of supply when the supply curve is q = 5 is a、5 b、perfectly inelastic. c、perfectly elastic. d、cannot be calculated from the information provided.
15、in the late 1980s, the health benefits of oat bran were widely advertised. if the price of oats increased 50%, causing the quantity of oats supplied to increase by 40%, then the price elasticity of supply was a、1.25. b、1.25. c、-0.80. d、0.80.
02 consumer choice
test for chapter 2
1、an indifference curve represents bundles of goods that a consumer a、views as equally desirable. b、ranks from most preferred to least preferred. c、refers to any other bundle of goods. d、all of the above.
2、if two bundles are on the same indifference curve, then a、the consumer derives the same level of utility from each. b、the consumer derives the same level of ordinal utility from each but not the same level of cardinal utility. c、no comparison can be made between the two bundles since utility cannot really be measured. d、b and c.
3、joe's income is $500, the price of food (f) is $2 per unit, and the price of shelter (s) is $100. which of the following represents his budget constraint? a、500 = 2f 100s b、f = 250 - 50s c、s = 5 - 0.02f d、all of the above.
4、the assumption of completeness means that a、the consumer can rank all possible consumption bundles. b、more of a good is always better. c、the consumers can rank all affordable consumption bundles. d、all preferences conditions are met.
5、utility is the set of numerical values that a、yields an absolute level of pleasure from a bundle of goods. b、reflects the relative ranking of various bundles of goods. c、describes how much more a consumer prefers one bundle to another. d、yields a cardinal ranking of bundles.
6、joe's budget constraint equals 500 = 2f 100s, where $500 is joe's income, $2 is the price of food (f) and $100 is the price of shelter (s). how much food can joe buy if he buys one unit of shelter? a、2 units b、200 units c、250 units d、400 units
7、if both prices decreases by 50%, a、budget constraint will be unchanged. b、slope of the budget constraint will increase. c、slope of the budget constraint will decrease. d、budget constraint will shift outward in a parallel fashion.
8、the marginal rate of transformation of y for x represents a、the slope of the budget constraint. b、the rate at which the consumer must give up y to get one more x. c、-px/py. d、all of the above.
9、if fred's marginal utility of pizza equals 10 and his marginal utility of salad equals 2, then a、he would give up 5 pizzas to get the next salad. b、he would give up 5 salads to get the next pizza. c、he will eat five times as much pizza as salad. d、he will eat five times as much salad as pizza.
10、the fact that your fourth slice of pizza does not generate as much satisfaction as your third slice is an example of a、consumer surplus. b、diminishing total utility. c、diminishing marginal utility. d、the paradox of value.
03 applying consumer theory
test for chapter 3
1、the consumer is in equilibrium when a、mrt = mrs. b、px/py. = mux/muy. c、the budget line is tangent to the indifference curve at the bundle chosen. d、all of the above.
2、sandy derives utility from consuming "all other goods," g, and clean air (measured by particulate matter removed per m3), a, as measured by the utility function u(g,a) = g0.6a0.4. the price of "all other goods" is $20 and the price of clean air (abatement) equals $10. brian is the only other consumer in the market for clean air and demands 10 units of clean air. what is the market demand for clean air? a、total market demand is 14 units of clean air. b、total market demand is 12 units of clean air. c、total market demand is 10 units of clean air. d、total market demand is 16 units of clean air.
3、an individual's demand curve for a good can be derived by measuring the quantities selected as a、the price of the good changes. b、the price of substitute goods changes. c、income changes. d、all of the above.
4、when the price of a good changes, the substitution effect can be found by comparing the equilibrium quantities purchased a、on the old budget line and the new budget line. b、on the original indifference curve when faced with the original prices and when faced with the new prices. c、on the new budget line and a hypothetical budget line that is a shift back to the original indifference curve parallel to the new budget line. d、on the new indifference curve.
5、one reason more sport utility vehicles (suvs) are driven in the united states than in europe is a、different marginal rates of substitution. b、different marginal rates of transformation. c、the united states hasn't had a recession since 2000-2001. d、either a or b
6、a movement upward along an upward sloping engel curve corresponds to a、upward sloping indifference curves. b、crossing indifference curves. c、a rotation in the budget constraint. d、a parallel shift in the budget constraint.
7、data shows that united states college students purchase more e-books than german college students. assuming that all students have identical preferences for e-books and textbooks, what is the likely explanation for this result? a、taxes on textbooks are higher in the united states than taxes on textbooks in germany. b、taxes on textbooks are lower in the united states than taxes on textbooks in germany. c、the price of textbooks is cheaper in the united states than textbooks in germany. d、both a and c.
8、by selecting a bundle where mrs = mrt, the consumer is saying a、"i value my last unit of each good equally." b、"i am willing to trade one good for the other at the same rate that i am required to do so." c、"i will equate the amounts spent on all goods consumed." d、all of the above.
9、both sally and sam receive a 10% raise in a single year. sally increases her demand for ground beef whereas sam decreases his demand for ground beef. a、this is impossible. b、this is only possible if sally considers ground beef an inferior good, and sam views it as a normal good. c、this is only possible if sally has lower income than sam. d、this is only possible if sally considers ground beef a normal good and sam views it as an inferior good.
10、when the price of a good changes, the income effect can be found by comparing the equilibrium quantities purchased a、on the old budget line and the new budget line. b、on the original indifference curve when faced with the original prices and when faced with the new prices. c、on the new budget line and a hypothetical budget line that is a shift back to the original indifference curve parallel to the new budget line. d、on the new indifference curve.
11、robinson crusoe is stranded on an island. he finds that coconuts are freely available (zero harvest cost), but fish are difficult to harvest and require a lot of energy. as a result, harvesting fish has a high price. if coconuts and fish are imperfect substitutes, what is robinson crusoe likely to consume? a、he will consume more coconuts than fish. b、he will consume more fish than coconuts. c、he will consume equal amounts of both goods. d、not enough information is given.
12、if mrs > mrt, then the consumer is better off than at equilibrium.
13、an increase in income (all else equal) will always lead to a parallel shift of the budget line.
04 firms and production
test for chapter 4
1、efficient production occurs if a firm a、cannot produce its current level of output with fewer inputs. b、given the quantity of inputs, cannot produce more output. c、maximizes profit. d、all of the above.
2、firms maximize profit when a、the additional benefit from producing a good equals the additional cost of producing that good. b、mr = mc. c、the derivative of the profit function with respect to output is zero. d、all of the above.
3、with respect to production, the short run is best defined as a time period a、lasting about six months. b、lasting about two years. c、in which all inputs are fixed. d、in which at least one input is fixed.
4、in the long run, all factors of production are a、variable. b、fixed. c、materials. d、rented.
5、a production function tells the firm a、the maximum it can expect to produce with a given mix of inputs. b、the average it can expect to produce with a given mix of inputs. c、the minimum it can expect to produce with a given mix of inputs. d、the average level of production for other firms in the industry.
6、the marginal product of labor is a、the change in total product resulting from an extra unit of labor, holding other factors constant. b、the ratio of output to the number of workers used to produce that output. c、the amount of output that can be produced by a given amount of labor. d、equal to the marginal product of labor when the average product is increasing.
7、joey cuts lawns during the summer. let q equal the number of acres mowed per day, and let l equal the number of hours worked per day. joey never works more than eight hours per day, and during that time his short-run production function is q = 0.2 ∗ l. which of the following statements is false? a、joey's marginal productivity equals his average productivity. b、joey's marginal productivity diminishes by 0.2 for each additional hour worked. c、joey's average productivity is constant. d、joey's marginal productivity is constant.
8、the slope of the total product curve always equals a、the ratio of the marginal product and the average product. b、the change in input divided by the change in output. c、the average product of the input. d、the marginal product of the input.
9、an isoquant represents levels of capital and labor that a、have constant marginal productivity. b、yield the same level of output. c、incur the same total cost. d、all of the above.
10、to say that isoquants are convex is to say that a、the marginal rate of technical substitution falls as labor increases. b、capital and labor are perfect substitutes. c、labor, but not capital, is subject to the law of diminishing marginal returns. d、there are constant returns to scale.
11、the slope of an isoquant tells us a、how much output increases when both inputs are increased. b、the increase in mpl when capital increases. c、the decrease in capital necessary to keep output constant when labor increases by one unit. d、the decrease in capital necessary to keep mpl constant when labor increases by one unit.
12、returns to scale refers to the change in output when a、all inputs increase proportionately. b、labor increases holding all other inputs fixed. c、capital equipment is doubled. d、specialization improves.
13、returns to scale is a concept that operates a、only in the short run. b、only in the long run. c、in both the long run and the short run. d、in either the long run or the short run but never both.
14、let the production function be q = alakb. the function exhibits constant returns to scale if a、a b = 1. b、a b > 1. c、a b < 1. d、cannot be determined with the information given.
15、the length of the short run is the same for all firms.
16、cobb-douglas production functions can never possess varying returns to scale.
05 costs
test for chapter 5
1、a firm's marginal cost can always be thought of as the change in total cost if a、the firm produces one more unit of output. b、the firm buys one more unit of capital. c、the firm's average cost increases by $1. d、the firm moves to the next highest isoquant.
2、which of the following statements is not true? a、ac = afc avc b、c = f vc c、avc = wage/mpl d、afc = ac - avc
3、suppose the total cost of producing t-shirts can be represented as tc = 50 2q. the marginal cost of the 5th t-shirt is a、2. b、10. c、12. d、60.
4、if average cost is decreasing, a、marginal cost equals average cost. b、marginal cost exceeds average cost. c、marginal cost is less than average cost. d、not enough information is given.
5、variable costs are a、a production expense that does not vary with output. b、a production expense that changes with the quantity of output produced. c、equal to total cost divided by the units of output produced. d、the amount by which a firm's cost changes if the firm produces one more unit of output.
6、suppose the short-run production function is q = 10 ∗ l. if the wage rate is $10 per unit of labor, then mc equals a、q. b、q/10. c、10/q. d、1.
7、assume baseball player salaries are fully determined before the season starts. from the point of view of the baseball team owner, player salaries during the course of the season are then a、variable costs. b、marginal costs. c、fixed costs. d、average costs.
8、the slope of the isocost line tells the firm how much a、capital must be reduced to keep total cost constant when hiring one more unit of labor. b、capital must be increased to keep total cost constant when hiring one more unit of labor. c、more expensive a unit of capital costs relative a unit of labor. d、the isocost curve will shift outward if the firm wishes to produce more.
9、if the cost of labor increases, the isocost line will a、stay the same. b、shift outward in parallel fashion. c、rotate inward around the point where only capital is employed in production. d、shift inward in parallel fashion.
10、suppose that each worker must use only one shovel to dig a trench, and shovels are useless by themselves. in the long run, the firm's cost function is a、tc = (w/r) ∗ q. b、tc = (w r)/q. c、tc = (w r). d、tc = (w r) ∗ q.
11、if the marginal rate of technical substitution for a cost minimizing firm is 10, and the wage rate for labor is $5, what is the rental rate for capital in dollars? a、0.5 b、1 c、2 d、10
12、suppose mpl = 0.5 ∗ (q/l) and mpk = 0.5 ∗ (q/k). in the long run, the firm will hire equal amounts of capital and labor a、all of the time. b、only when w = r. c、only when w = 0.5 ∗ r. d、at no point in time.
13、economic costs of an input include a、only implicit costs. b、only explicit costs. c、both implicit and explicit costs. d、whatever management wishes to report to the shareholders.
14、the production possibilities frontier a、is the boundary between attainable and unattainable levels of production. b、is the boundary between what we want to consume and what we want to produce. c、shows how production increases as prices rise. d、shows prices at which production is possible and impossible. e、illustrates why there need not be any scarcity in the world.
15、if sam is producing at a point on his production possibilities frontier, then he a、cannot produce any more of either good. b、is unaffected by costs and technology. c、can produce more of both goods. d、is not subject to scarcity. e、can increase the production of one good only by decreasing the production of the other.
16、opportunity cost of an action is a、the best choice that can be made. b、the highest-valued alternative forgone. c、the money cost. d、the comparative cost. e、the absolute cost.
17、choose the correct statements. 1. opportunity cost of a good is the increase in the quantity produced of one good divided by the decrease in the quantity produced of another good as we move along the ppf. 2. the opportunity cost of an action is the highest-valued alternative forgone. 3. opportunity cost is a ratio. 4. there is no relationship between the opportunity cost of producing an additional good measured on the x-axis and the opportunity cost of producing an additional good measured on the y-axis. a、statements 1 and 3 are correct. b、statements 1 and 2 are correct. c、statements 2 and 3 are correct. d、statements 2 and 4 are correct. e、statements 3 and 4 are correct.
18、a technological improvement is represented by a、an outward shift of the production possibilities frontier. b、a movement along the production possibilities frontier. c、a point inside the production possibilities frontier. d、a point outside the production possibilities frontier. e、a movement from a point inside the production possibilities frontier to a point on the production possibilities frontier.
19、production efficiency is achieved when a、the production possibilities frontier shifts outward at an even pace. b、there are no more tradeoffs. c、all resources are equally productive in all activities. d、resources are not equally productive in all activities. e、we produce goods and services at the lowest possible cost.
20、the "law of diminishing marginal returns" could also be termed the "law of increasing marginal costs."
21、if increasing returns to scale are present, the long-run average cost increases as more output is produced.
22、"if the wage rate paid to one form of labor is twice the cost of another form of labor, the first type of labor must be twice as productive." comment.
06 perfectly competitive markets
test for chapter 6
1、if the inverse demand function for toasters is p = 60 - q, what is the consumer surplus if price is 30? a、300 b、900 c、450 d、150
2、if a competitive firm maximizes short-run profits by producing some quantity of output, which of the following must be true at that level of output? a、p > mc b、mr > mc c、p ≥ avc d、all of the above
3、assume a consumer has a horizontal demand curve for a product. his consumer surplus from buying the product a、is maximized b、equals zero c、cannot be calculated d、need more information
4、firms maximize profit when a、the additional benefit from producing a good equals the additional cost of producing that good b、mr = mc c、the derivative of the profit function with respect to output is zero d、the tangent line for the point on the profit function is flat
5、why a long-run market supply curve might not flat in perfect competition a、when entry is limited. b、when firms' cost functions differ c、when input prices vary with output d、when consumers have satiation points.
6、in the following actions taken by government, which might cause a loss in social welfare a、price ceiling b、allow free-trade c、sales tax d、price floor
7、in the long-run equilibrium in perfect competition, producer surplus is positive.
8、in perfect competion, the marginal cost curve always cross the lowest point on average variable cost curve
9、a per unit subsidy increases both consumer and producer surplus, but results in a deadweight loss.
10、a firm’s producer surplus equals to its profit if it has no fixed cost
07 imperfect competition and monopoly
test for chapter 7
1、the deadweight loss generated by a perfect-price-discriminating monopoly a、equals the deadweight loss of a single-price monopoly. b、is greater than the deadweight loss of a single-price monopoly. c、equals zero. d、equals the sum of all lost consumer surplus.
2、a monopolist faces the inverse demand curve p = 60 - q. it has variable costs of q^2 so that its marginal costs are 2q, and it has fixed costs of 30. the monopoly's maximum profit is a、220 b、370 c、420 d、510
3、if the demand curve a monopolist faces is perfectly elastic, then the ratio of the firm's price to the marginal cost is a、0 b、1 c、2 d、none of the above—the answer cannot be determined.
4、suppose a monopolistically competitive industry evolved into a perfectly competitive industry. which of the following statements is correct a、the industry would produce more output and charge a lower price after the change b、the industry would produce at decreasing returns to scale. c、elasticity of demand for the firm's product would remain the same after this change occurred. d、this industry would produce the same level of output at lower prices in the long run than before the change
5、suppose a monopoly's inverse demand curve is p = 100 -q, it produces a product with a constant marginal cost of 20, and it has no fixed costs. compared to the consumer surplus if the market were perfectly competitive, consumer surplus is how much less when the monopolist practices perfect price discrimination? a、3200 b、1600 c、800 d、0
6、in the long run, a monopolistic competitor a、sets mr=mc b、produces where p=ac c、sets p>mc d、earns zero profit
7、the more block prices a monopoly can set instead of setting a single price, a、the smaller the deadweight loss. b、the more producer surplus. c、the larger the total welfare. d、the higher of consumer surplus
8、a monopoly always operates in the inelastic portion of its demand curve
9、perfect competition and monopolistic competition are similar in that both market structures include no barriers to entry.
10、as the quantity produced of a good increases, the social welfare generated by that good increases
08 game theory
test for chapter 8
1、on following normal-form game l c r t 2,0 1,1 4,2 m 3,4 1,2 2,3 b 1,3 0,2 3,0 what is the reduced game after iterated elimination of strictly dominated strategies. a、l c t 2,0 1,1 m 3,4 1,2 b、c r m 1,2 2,3 b 0,2 3,0 c、l r t 2,0 4,2 m 3,4 2,3 d、l r t 2,0 4,2 b 1,3 3,0
2、on following normal-form game l c r t 2,0 1,1 4,2 m 3,4 1,2 2,3 b 1,3 0,2 3,0 what's nash equilibrium of this game? a、(t, l) and (b, r) b、(t, r) and (m, l) c、(t, r) and (b, c) d、(m, r) and (b, l)
3、on interesting feature of a prisoner’s dilemma game is that a、individuals behave irrationally when they behave non-cooperatively. b、it was only valid before the industrial revolution. c、non-cooperative behavior leads to lower payoffs than cooperative behavior d、cooperative behavior leads to lower payoffs than non-cooperative behavior.
4、on following three-player game, where player 1 chooses rows, player 2 columns and player 3 matrices l r l r t 2,1,0 3,0,1 t 3,0,1 1,0,0 m 3,2,2 4,3,5 m 5,0,2 2,2,7 b 1,4,1 2,4,3 b 0,1,2 0,2,3 l r which strategy of player 1 is strictly dominated? a、strategy m b、strategies t and m c、strategy b d、strategies t and b
5、on following three-player game, where player 1 chooses rows, player 2 columns and player 3 matrices l r l r t 2,1,0 3,0,1 t 3,0,1 1,0,0 m 3,2,2 4,3,5 m 5,0,2 2,2,7 b 1,4,1 2,4,3 b 0,1,2 0,2,3 l r what’s nash equilibrium of this game? a、(t, l, l) b、(m, r, r) c、(b, l, r) d、(t, r, r)
6、(first-price sealed-bid auction) alice is selling her 2000 chevrolet cavalier to her friends, bob and charles. bob attaches a value of s$8,000 to alice's old car, while charles's value of the car is s$10,000. (these valuations are common knowledge between bob and charles.) alice designs the following auction to sell her car: first, she asks each of them to write his bid on a piece of paper. then bob and charles give their bids (nonnegative integers) to alice. notice that when bob and charles write down their bids, they don't know each other's bid (so called "sealed bid"). after alice receives the sealed bids, the bids are shown to everyone, and the car will be sold to the person who has the higher bid at the price equal to his own bid. when there is a tie (bob and charles bid the same amount), then alice would flip a fair coin to decide who will get the car. decide true or false：in this game, bob has 8000 strategies and charles has 10000 strategies.
7、(first-price sealed-bid auction) alice is selling her 2000 chevrolet cavalier to her friends, bob and charles. bob attaches a value of s$8,000 to alice's old car, while charles's value of the car is s$10,000. (these valuations are common knowledge between bob and charles.) alice designs the following auction to sell her car: first, she asks each of them to write his bid on a piece of paper. then bob and charles give their bids (nonnegative integers) to alice. notice that when bob and charles write down their bids, they don't know each other's bid (so called "sealed bid"). after alice receives the sealed bids, the bids are shown to everyone, and the car will be sold to the person who has the higher bid at the price equal to his own bid. when there is a tie (bob and charles bid the same amount), then alice would flip a fair coin to decide who will get the car. decide true or false：in this game bob bids 8000 and charles bids 8000 is a nash equilibrium
8、(first-price sealed-bid auction) alice is selling her 2000 chevrolet cavalier to her friends, bob and charles. bob attaches a value of s$8,000 to alice's old car, while charles's value of the car is s$10,000. (these valuations are common knowledge between bob and charles.) alice designs the following auction to sell her car: first, she asks each of them to write his bid on a piece of paper. then bob and charles give their bids (nonnegative integers) to alice. notice that when bob and charles write down their bids, they don't know each other's bid (so called "sealed bid"). after alice receives the sealed bids, the bids are shown to everyone, and the car will be sold to the person who has the higher bid at the price equal to his own bid. when there is a tie (bob and charles bid the same amount), then alice would flip a fair coin to decide who will get the car. decide true or false：in this game bob bids 7999 and charles bids 8000 is a nash equilibrium
9、(first-price sealed-bid auction) alice is selling her 2000 chevrolet cavalier to her friends, bob and charles. bob attaches a value of s$8,000 to alice's old car, while charles's value of the car is s$10,000. (these valuations are common knowledge between bob and charles.) alice designs the following auction to sell her car: first, she asks each of them to write his bid on a piece of paper. then bob and charles give their bids (nonnegative integers) to alice. notice that when bob and charles write down their bids, they don't know each other's bid (so called "sealed bid"). after alice receives the sealed bids, the bids are shown to everyone, and the car will be sold to the person who has the higher bid at the price equal to his own bid. when there is a tie (bob and charles bid the same amount), then alice would flip a fair coin to decide who will get the car. decide true or false：in this game bob bids 8500 and charles bids 8400 is a nash equilibrium
09 uncertainty
test for chapter 9
1、depend on the following static bayesian game nature determines whether the payoffs are as in game 1 or as in game 2, each game being equally likely. l r l r t 1,1 0,0 t 0,0 0,0 b 0,0 0,0 b 0,0 2,2 game 1 game 2 player 1 learns whether nature has drawn game 1 or game 2, but player 2 does not. how many strategies players 1 and 2 have respectively? a、2, 2 b、2, 4 c、4, 2 d、4, 4
2、depend on the following static bayesian game nature determines whether the payoffs are as in game 1 or as in game 2, each game being equally likely. l r l r t 1,1 0,0 t 0,0 0,0 b 0,0 0,0 b 0,0 2,2 game 1 game 2 player 1 learns whether nature has drawn game 1 or game 2, but player 2 does not. which following statement about strictly dominated strategies is correct? a、player 1’s strategy t is a strictly dominated strategy b、player 2’s strategy l is a strictly dominated strategy c、player 1’s strategy (b,l) is a strictly dominated strategy d、no player has a strictly dominated strategy
3、depend on the following static bayesian game nature determines whether the payoffs are as in game 1 or as in game 2, each game being equally likely. l r l r t 1,1 0,0 t 0,0 0,0 b 0,0 0,0 b 0,0 2,2 game 1 game 2 player 1 learns whether nature has drawn game 1 or game 2, but player 2 does not. what is bayesian nash equilibrium of this game. a、(t, l) and (b, r) b、(tt, l) and (bb, r) c、(tt, l), (tb, r) and (bb, r) d、(tt, l), (tb, l) and (bb, r)
4、player 1 chooses a or b; player 2 chooses x or y. x y x y a 2,2 4,0 a 0,0 0,0 b 0,4 3,3 b 0,0 1,1 game 1 game 2 player 1 knows which game is played; player 2 knows only that each game is played with equal probability what are players’ strategies? a、player 1’s strategies are: a, b; player 2’s strategies are x, y b、player 1’s strategies are: aa, ab, ba, bb; player 2’s strategies are x, y c、player 1’s strategies are: a, b; player 2’s strategies are xx, xy, yx, yy d、player 1’s strategies are: aa, ab, ba, bb; player 2’s strategies are xx, xy, yx, yy
5、player 1 chooses a or b; player 2 chooses x or y. x y x y a 2,2 4,0 a 0,0 0,0 b 0,4 3,3 b 0,0 1,1 game 1 game 2 player 1 knows which game is played; player 2 knows only that each game is played with equal probability what is the reduced game after iterated elimination of strictly dominated strategies of each type? a、x y x y a 2,2 4,0 a 0,0 0,0 b 0,0 1,1 game 1 game 2 b、x y x y a 2,2 4,0 b 0,0 1,1 b 0,4 3,3 game 1 game 2 c、x y x y a 2,2 4,0 b 0,0 1,1 game 1 game 2 d、x y a 2,2 b 1,1 game 1 game 2
6、player 1 chooses a or b; player 2 chooses x or y. x y x y a 2,2 4,0 a 0,0 0,0 b 0,4 3,3 b 0,0 1,1 game 1 game 2 player 1 knows which game is played; player 2 knows only that each game is played with equal probability what’s bayesian nash equilibrium of this game? a、(a, x) b、(b, x) c、(aa, x) and (ab, x) d、(aa, x) and (ab,y)
7、consider an individual whose utility is given by , where x denotes his wealth. now the individual needs to make decision between two lotteries. lottery 1 gives him 100rmb for sure. lottery 2 gives him 64rmb with probability 0.5 and 140rmb with probability 0.5. then a、the individual prefers lottery 1 since lottery 1 brings higher utility b、the individual prefers lottery 2 since lottery 2 brings higher utility c、the individual prefers lottery 2 since lottery 2 brings higher expected wealth d、the individual is indifference between the two lotteries
8、consider an individual whose utility is given by , where x denotes his wealth. a lottery gives him 64rmb with probability 0.5 and 144rmb with probability 0.5. what is the risk premium for him? a、4 b、8 c、10 d、12
9、consider an individual whose utility is given by , where x denotes his wealth. a lottery gives him 64rmb with probability 0.5 and 144rmb with probability 0.5. what is the risk premium for him? a、4 b、8 c、10 d、12
10 factor markets
test for chapter 10
1、the increase in total revenue due to increasing the amount of labor employed by one unit is called the a、marginal product. b、marginal revenue product. c、average revenue product. d、total revenue product.
2、if a competitive firm faces a competitive labor market, it will hire labor until a、w = p. b、w = mpl. c、w = mpl ∗ p. d、mpl = 0.
3、if a firm buys its labor in a competitive market, then a short-run increase in the price of the firm's output will cause the firm to a、offer a higher wage. b、hire fewer workers. c、hire more workers. d、offer a lower wage.
4、in a perfectly competitive resource market the marginal revenue product curve is a、vertical. b、horizontal. c、downward-sloping. d、upward-sloping.
5、in a perfectly competitive resource market the labor supply curve facing the single firm is a、vertical. b、horizontal. c、downward-sloping. d、upward-sloping.
6、for a monopsonist, the labor supply curve is upward sloping because a、the monopsonist must compete with other industries for that labor. b、the monopsonist requires that the laborers are highly skilled. c、the monopsonist is the only buyer in that labor market. d、the monopsonist restricts the supply of labor.
7、a monopsonist faces an upward-sloping labor supply curve. this means that his marginal expenditures on labor are a、greater than the wage. b、equal to the wage plus the increase in the wage resulting from hiring one more unit of labor hired. c、greater than the wage because hiring more workers requires to pay all workers more. d、all of the above.
8、universities are able to act as monopsonists in the market for professors because a、a university usually does not consider hiring faculty members from another institution. b、faculty members usually have to move to a different city when changing universities. c、students like all of their professors. d、senior faculty members are willing to move to a new university at any cost.
9、the labor supply curve for a monopsony is a、perfectly horizontal. b、perfectly vertical. c、upward sloping but not perfectly vertical. d、downward sloping.
10、if a firm takes the wage as given, then the supply curve of labor to that firm is a、horizontal. b、vertical. c、upward sloping. d、downward sloping.
11、the steeper the labor supply curve, a、the higher the wage the monopsonist pays. b、the lower the wage the monopsonist pays. c、the smaller the difference between the wage and the marginal expenditure on labor. d、the better off workers are.
12、under monopsony, the wage rate a、a) equals the marginal product of labor. b、equals the marginal revenue product of labor. c、is less than the marginal revenue product of labor. d、is greater than it would be under perfect competition.
13、if the competitive firm maximizes profit by selecting labor rather than output, it will earn greater economic profit.
14、because of market power, wages are higher under monopsony than under competitive conditions.