test bank for Microeconomics 7th Edition by Paul Krugman Robin Wells

a. 

changes in airline travelers’ vacation plans due to changes in the prices of airline tickets

b. 

the effects of a tax reduction on the profits of Home Depot

c. 

recessions

d. 

unemployment among workers displaced as more firms move to cloud-based applications

ANSWER:  

c

a. 

ensure that the government pursues the public good during pandemics.

b. 

make sure small businesses thrive.

c. 

study the choices people make, given unlimited wants.

d. 

determine how unlimited resources can best be used to satisfy limited wants.

ANSWER:  

c

a. 

not part of the study of economics.

b. 

impossible to describe.

c. 

studied in microeconomics.

d. 

unimportant to the study of microeconomics.

ANSWER:  

c

a. 

reasons why a consumer buys more cheese

b. 

reasons why inflation is rising

c. 

what the government will do to address unemployment

d. 

the effect of the budget deficit on the rate of interest

ANSWER:  

a

a. 

we often do not have sufficient resources to achieve our objectives.

b. 

the wants of individual consumers are limited.

c. 

there are poor people even in rich countries.

d. 

taxes keep prices higher than they would otherwise be.

ANSWER:  

a

a. 

they are insufficient to provide enough goods and services to satisfy all human material wants and needs.

b. 

there are not enough of them for firms to produce goods and services.

c. 

they are probably overvalued by consumers.

d. 

their supply is unlimited.

ANSWER:  

a