微观经济学试题英文版

1、Managerial EconomicsPart 1:1. The price of good A goes up. As a result the demand for good B shifts to the left. From this we can infer that:a. good A is a normal good.b. good B is an inferior good.c. goods A and B are substitutes.d. goods A and B are complements.e. none of the above.Choose: d) the

2、definition os complements2. Joe's budget line is 15F + 45C = 900. When Joe chooses his most preferred market basket, he buys 10 units of C. therefore, he also buys :a. 10 units of F b. 30 units of F c. 50 units of Fd. 60 units of F e. None of the aboveChoose: b) We assume that Joe will spend all

3、 his income. If C = 10, then 15F =900-45(10) =450, so F = 450/15 =30.3. Kim only buys coffee and compact discs. Coffee costs $0.60 per cup, and CDs cost $12.00 each. She has $18 per week to spend on these two goods. If Kim is maximizing her utility, her marginal rate of substitution of coffee for CD

4、s is:a. 0.05 b. 20 c. 18 d. 1.50 e. None of the aboveChoose: a) At Kim's most preferred market basket, her MRS equals the price ratio (Pcoffee/PCD), which equals 0.6/12 or 0.05.4. The bandwagon effect corresponds best to which of the following?a. snob effect.b. external economy.c. negative netwo

5、rk externality.d. positive network externality.Choose: d)5. A Giffen gooda. is always the same as an inferior good.b. is the special subset of inferior goods in which the substitution effect dominates the income effect.c. is the special subset of inferior goods in which the income effect dominates t

6、he substitution effect.d. must have a downward sloping demand curve.Choose: c) the definition of Giffen good6. An Engel curve for a good has a positive slope if the good is :a. an inferior good.b. a Giffen good.c. a normal good.d. a, b, and c are true.e. None of the above is true.Choose: c) Inferior

7、 and Giffen goods have negatively sloped Engel curves.7. The price of beef and quantity of beef traded are P* and Q*, respectively. Given this information, consumer surplus is the area:a. 0BCQ* b. ABC c. ACP* d. CBP* e. 0ACQ* Choose: d) Consumer surplus is the area between the demand line and the pr

8、ice.8. In Figure 1, holding income constant, what change must have occurred to rotate the budget line from the old line(1) to the new line(2)?b. The price of pizza fellc. The price of pizza rosed. The price of Coke went upe. b and cChoose: b) The horizontalintercept, I/PC, is unchanged, which implie

9、s that PCcouldnot have cha nged (holdi ng in come con sta nt). Since the slope is PP/PC, the slope cha nge means that the price of pizza must have falle n. This can also be see n in tuitively from Figure 1, since the con sumer can now buy more pizza tha n before if he spe nds all his in come on pizz

10、a.9. Andy buys 10 pounds of onions per month whe n the price is $0.75 per poun d. If the price falls to $0.50 per pound, he buys 30 pounds of onions. What is his arc elasticity of dema nd over this price ran ge?a. - 1.33 b. 2 c. 2.5 d. - 6 e. None of the above is correct.Choose: c) Usi ng the arc el

11、asticity formula,The next two questions refer to the following information: Opie and Gomer are theonly two con sumers in the video cassette rental market in the Mayberry. Their dema nd curves per week are pictured in Figure 2.10. If ren tals cost $2.50 each, the totalqua ntity dema nded each week in

12、 the marketis :a. 3 b. 6 c. 15 d. 10 e. None of the above is correct.Choose: b) Add horizo ntally to get the market dema nd curve. At P = $2.50, QO = 3 and QG = 3 for a total of 6 un its dema nded.11. For a decrease in price from $2.50 to $1.50, market dema nd is :a. elastic. b. unit elastic. c. in

13、elastic.d. perfectly in elastic. e. More in formatio n is n eeded.Choose: a) Dema nd is price elastic:EP = % Q/%A P = (15-6)/6/(2.50-1.50)/2.50 = -3.75OPIE12. As preside nt and CEOof MegaWorld in dustries,you must decide on some very riskyalter native inv estme nts:ProjectProfit if SuccessfulProbabi

14、lity of SuccessLoss ifFailureProbability of FailureA$10 millio n.5-$6 millio n.5B$50 millio n.2-$4 millio n.8C$90 millio n.1-$10 millio n.9D$20 millio n.8-$50 millio n.2E$15 millio n.4$0.6The highest expected retur n bel ongs to inv estme nta. A. b. B.c. C. d. D. e. EChoose: b) Ea=2 Eb=6.8 Ec=0 Ed=6

15、 Ee=613. An in dividual with a con sta nt margi nal utility of in come will bea. risk averse. b.risk n eutral.c. risk loving. d.in sufficie nt in formati on for a decisi on.Choose: b) An in dividualwith a con sta nt marginal utility of in come is risk n eutral.14. In the figure below, what is true a

16、bout the two jobs?a. Job 1 has a lower sta ndard deviati on tha n Job 2.b. All outcomes in both jobs have the same probability of occurre nee.c. A risk-averse pers on would prefer Job 2.d. A risk -n eutral pers on would prefer Job 1.e. Job 1 has a higher expected in come tha n Job 2.Choose: a) Job 1

17、 has a lower sta ndard deviatio n tha n Job 2. Expected in come of Job1 equals to Job 2.Part 2:The dema nd curves for steak, eggs, and hot dogs are give n in the table below. The current price of steak is $5. Theprice of eggs is $2.50, and the price of hot dogsis $0.75. Fill in the remaining columns

18、 of the table using this information.Indicate which goods are substitutes and which goods are complements.GoodDema nd Equati onSteakPriceElasticit y of De ma ndEgg Price Elasticit y of Dema ndHotdog PriceElasticit y of Dema ndSteakEggHotdogSolutio n:GoodDema nd Equati onSteak PriceElasticit y of De

19、ma ndEgg Price Elasticit y of Dema ndHotdog PriceElasticit y of Dema ndSteak-0.020-0.000511.53E-5Egg-0.0799-0.121.20E-3Hotdog0.0160.00082-0.0012Steak and eggs are compleme nts. Steak and hotdogs and eggs and hotdogs are substitutes.Part 3:Draw indiffereneecurves to represent the followingdescription

20、sof consumerprefere nces:a. I can ' t taste the differenee between apple and grape jelly, but I like them both.b. I only like grape jelly and n ever eat apple jelly.c. Apple and grape jelly are better mixed, although I don ' tcare too much about the proporti ons.An swer:a) See Figure 7(a). S

21、ince the consumer can not tell the difference between the two flavors, all he would care about is the total amount of jelly he has.b) See Figure 7(b). An in crease in the amount of apple jelly does not affect the con sumer since he n ever eats it.c) See Figure 7(c). Here, a mixed bun dle is better t

22、ha n an extreme one, but the consumer is willing to trade off the different flavors.Ounces ofGrape JellyOunces ofGrape JellyApple JellyofOunces of(C)certa inFigure 7 Part 4:There are reas ons other tha n fads, fashi ons, and con sumer in securi tyforban dwago nandsnob effects.Various types of exter

23、nal ities in the con sumpt ion ofgoods also exist. Expla in which these effects (ba ndwag on or sn ob) might be prese nt in the followi ng cases:a. A restaura nt that is ofte n crowdedb. A pers onal computer software productc. A rock con certAn swer:a) A price decrease will attract more customers, b

24、ut the crowd in g(l on ger lin es, poorer service) will discourage others. This would resemble a snob effect.b) The more people you expect to buy a software product, the more likely you can find another experieneed user to ask questions about it. Also, the more likelyit is that a computer bookstore

25、will carry publications about how to use the software. Thus, we would expect to see a ban dwago n effect.c) Here, crowding might discourage some customers. But, since part of the enjoyment of a con cert is see ing the band with other fans, we might observe a ban dwago neffect. Part 5:TomWilson is th

26、e operations manager for Bi-Corp, a real estate investment firm. Tom must decide if Bi-Corp is to invest in a strip mall in a northeast metropolitan area.If the shopping center is highly successful, after tax profits will be $100,000 per year. Moderate success would yield an annual profit of $50,000, while the project will lose $10,000 per ye