Test Bank For Microeconomics 14Th Canadian Edition by Ragan

MULTIPLE CHOICE.

Choose the one alternative that best completes the statement or answers the question.

1)Suppose that two points on a straight line are (X = 4, Y = 5), and (X = 2, Y = 1). The slope of this line
is 1) A) 2. B)
4
5
. C) –
1
2
. D) -2. E)
1
2
.
Answer: A
Explanation: A) B) C) D) E) 2)
Suppose we observe that consumption of electricity decreases when the price of electricity rises.
We can say that the two variables are related 2) A) negatively. B) positively. C) exogenously. D) linearly. E) non-linearly. Answer: A
Explanation: A) B) C) D) E) 3)
Suppose an individual wheat farmer’s income is influenced by the region’s average daily
temperature. When examining the determinants of individual farmer income, the average daily
temperature is a(n) ________ variable. 3) A) flow B) endogenous C) induced D) exogenous E) dependent Answer: D
Explanation: A) B) C) D) E) 1
FIGURE 2-4
4)
Refer to Figure 2-4. The functional relation shown between fertilizer applied and wheat yield can
be described as a 4) A) diminishing marginal response. B) decreasing total response. C) constant marginal response. D) increasing marginal response. E) increasing partial response. Answer: A
Explanation: A) B) C) D) E) 5) Which is the best description of a normative statement? A normative statement 5) A) can be derived logically from facts. B) is one that involves a value judgment. C) concerns what is provable. D) has no place in the study and practice of economics. E) is a statement that is empirically testable. Answer: B
Explanation: A) B) C) D) E