Test Bank For Microeconomics and Behavior Robert H Frank 9th Edition

Chapter 01

Multiple Choice Questions
1. Microeconomics is primarily the study of how 
A. the stock market works.

B. people choose among alternatives.

C. businesses can make money.

D. the economy functions as a whole.

2. If you are at an all-you-can-eat buffet dinner and you are considering whether to eat another dessert, you, as a rational consumer should decide to eat the desert 
A. if it brings you any pleasure at all.

B. if it brings you more pleasure than the price you paid for the meal.

C. if it brings you as much pleasure as the desert costs if it is ordered a la carte.

D. no matter what because you want to get more for your money.

3. Say your girlfriend has received two free tickets to the Sunday movie matinee and she wants you to go with her. Nevertheless, the movie plays at the same time you were planning to watch the football game on TV. As a rational person, you should decide to go to the movie 
A. always, since the tickets were free.

B. only if you would gain some pleasure from it.

C. only if the pleasure you will gain from it outweighs the pleasure you would gain from watching the football game.

D. only if it brings you more pleasure than the cost of the tickets.

4. The reservation price of good X is 
A. the market price for a good.

B. any price above what you would be willing to pay for the good.

C. the price at which one would be indifferent between good X and simply keeping the money.

D. the cost of producing good X.

5.If the benefits of X = $50 and the price of X = $50, then 
A. $100 is the reservation price.

B. you will be indifferent between buying X and keeping your money.

C. $0 is the reservation price.

D. you should buy X.