X and Y are prefect complements to Allen.
Allen's preference over X and Y is strictly convex.
Every indifference curve of Allen is a straight line.
Allen's preference is monotonic.
None of the above.
The unit price of X is $2 for the first three units and $1.5 for
each additional unit of purchase. In other words, the payment of buying x units is
The unit price of Y is $1 regardless the units of purchase. Allen spends all of his
income to buy these two goods. Which of the following is (are) true?
To maximize his utility, Allen will purchase 4 units of x if his income is $15.5.
To maximize his utility, Allen will buy 5 units of Y if his income is $10.
Allen will buy 3 units of X at several different income levels.
The slope of Allen's Engel curve of the consumption on X is discontinuous at the
income level $12.
None of the above.
We say that a consumer has well-behaved preferences if his preferences are complete,
reflexive, transitive, monotonic, and weakly convex. We observe the consumption
behaviors of Robert, Sam, and Tom in January and February. They only consume two
goods, X and Y. Their tastes are unchanged in these two months. The prices of X and Y
differ over time. The observed data are shown in the following table.
According to the available data, which of the following conclusion(s) is (are) true?
Robert may have well-behaved preferences.
Sam may have well-behaved preferences.
Tom must have well-behaved preferences.
Robert and Tom may have the same well-behaved preferences.
None of the above.
There is a lottery betting on the weather. The lottery pays $100 on a sunny day, but it
pays nothing on a rainy day. Everyone knows that the probability of raining tomorrow
is 30%. Suppose both Diana and Emily want to maximize their expected utility. Their
initial wealth are both $100. Diana is willing to pay $30 to buy the lottery, but Emily is
not. Which of the following is (are) possible, given the above observations?
Emily is risk averse at all wealth levels.
Diana's marginal utility at the wealth level $100 is higher than Emily's.
Diana's utility function is convex at the wealth level $100.
Emily's utility function is convex at the wealth level $100.
None of the above.
Assume that inflation rate is zero. All consumers can borrow and save money in the
credit market. Initially, the interest rate to borrow money and the interest rate to save
money are both 3%. Suppose the government imposes a tax on the banking sector such
that the interest rate to borrow becomes 4% and the interest rate to save becomes 2%.
Which of the following is (are) true?
All consumers must be strictly worth off.
A borrower may become a saver after the policy change.
A saver may become a borrower after the policy change.
The amount of transactions in the credit market must decline after the policy change.
None of the above.
The substitution effect of this regulation on her consumption of X is −16/9 if a = 3 .
The income effect of this regulation on her consumption of X is −16/9 if a = 3
The substitution effect of this regulation on her consumption of X must be negative
for any a > 2 .
The income effect of this regulation on her consumption of X must be negative for
any a > 2 .
None of the above.
Decompose the total effect of the regulation on Grace's consumption of X into a Hicks
substitution effect (holding the utility level fixed) and income effect.
Suppose the price of X rises to $3 after the new regulation being
imposed (i.e. a = 3). Which of the following is (are) true?
Grace's consumer surplus declines $24 ln (3/2) because of the regulation.
If Grace can bribe the mayor to prevent the regulation being imposed, the maximal
amount Grace is willing to bribe is $6.
If Grace can bribe the mayor to prevent the regulation being imposed, the maximal
amount Grace is willing to bribe is $8.
None of the above.
Suppose the demand for deerskins in a given month can be expressed as
D(p) =1000 −10p , where p is its price. The monthly supply of deerskins is S(p) =10p .
Therefore, 500 units of the deerskins are sold in equilibrium every month.
However, the government decides to limit the transaction of deerskins. To purchase one
unit of deerskin, a consumer needs to obtain one permit from the government. The
government issues 200 permits this month. Permits are randomly distributed to
consumers. Which of the following is (are) true?
There are 200 units of deerskins being sold in the market. Sellers of deerskins
receive $80 for each unit of the sales.
There would be a market for the permits. The equilibrium price of the permits is $80
A consumer is willing to buy a permit if her marginal value of deerskins is greater
than $80.
The deadweight loss due to the government intervention is $9000 this month.
None of the above.
Suppose the invention of Internet raises the productivity of capital by 10% permanently.
Which of the following is (are) true?
The equilibrium interest rate must increases.
The demand for capital shifts upward.
The effect of this invention on the interest rate is larger than the effect of an
invention which raises the productivity by 10% temporarily.
The quantity of current consumption must increases.
None of the above.
An inferior good is a good with negative income elasticity. A normal good is a good
with positive income elasticity. A luxury is a good with income elasticity greater than
one. Which of the following is (are) true?
It is possible that all of the goods you consume are inferior goods.
It is possible that all of the goods you consume are normal goods.
It is possible that all of the goods you consume are luxuries.
If the demand curve for a good is upward-sloping everywhere, the good must be a
normal good.
None of the above.
Let firm 1's production function be y = min{L,K}+ L + K where y is the
quantity of output, and the total cost c = wL + rK where w is the wage and r is
the rental rate.
The least cost combination (L,K) is (10,10) if y = 30 and (w,r) = (2,5).
The least cost combination (L,K) is (10,10) if y = 30 and (w,r) = (1,5).
Keep total costs the same, less output will be produced if w/r > 2 .
Keep total costs the same, less output will be produced if w/r < 0.5 .
When the perfectly competitive firm, in long-run equilibrium, which of the following is
(are) true.
P = MR
P = SMC = SAC
P = LMC = LAC
P = LMC ≠ SAC
Firm 1 produces more than firm 2 under the Stackelberg equilibrium if firm 1
chooses its production before firm 2.
Firm 1 produces less than firm 2 under the Stackelberg equilibrium if firm 2 choose
its production before firm 1.
If Microsoft practices simple monopoly pricing for the two software programs, a
professional under age 50 will only buy PowerPoint.
If Microsoft practices simple monopoly pricing for the two software programs, a
professional over age 50 will only buy Word.
If Microsoft uses a mixed bundling price policy, a student will buy the bundle.
If Microsoft uses a mixed bundling price policy, a professional over age 50 will buy
the bundle.
Person 1 would want to giver person 2 some candy if she had more than 20 units of
candy.
Person 1 would want to giver person 2 some candy if she had more than 30 units of
candy.
Person 1 would never want to giver person 2 any candy.
They would never disagree about how to divide the candy.
Without government intervention, the provision of public good is 3 units.
Without government intervention, the provision of public good is 4 units.
The socially optimal level of public good provision is 3 units.
The socially optimal level of public good provision is 4 units.
If player 1 choose Bottom and player 2 chooses Right in a pure-strategy Nash
equilibrium, then b <1 and c < d .
If player 1 choose Top and player 2 chooses Right in a pure-strategy Nash
equilibrium, then b >1 and c < d .
If a >1 > b and c = d, then there is no pure-strategy Nash equilibrium.
If a > b >1 and c < d , then the pure-strategy Nash equilibrium is unique.
The equilibrium price of good y is less or equal to $3.
The equilibrium price of good y is greater than $3.
Person 1 sells good y to person 2 under the equilibrium condition.
Person 1 sells good x to person 2 under the equilibrium condition.
His income is less than $130 and the price of fish is $3.
His income is less than $140 and the price of fish is $1.
His income is more than $130 and the price of fish is $3.
His income is more than $140 and the price of fish is $1.
Banks have started offering electronic bill pay for free. This decision can best be
explained as
increasing switching costs. Customers would have to set up electronic bill pay again
at their new bank.
matching free services provided by competitor banks to win over new customers.
bank wanting to enhance their reputation for good service.
banks reducing their costs of paper check processing.
可觀看題目詳解,並提供模擬測驗!(免費會員無法觀看研究所試題解答)