ALEconMicroPast Paper(分topic ,mc+lq,有ans).doc

Unit 1 The Scope of Economic Analysis(i) Basic Economic Problems1. Scarcity impliesA. there is no such thing as a free good.B. competition is inevitable.C. a lack of proper planning.D. price is the only viable criterion for the allocation of resources. (87-06)2. Which one of the following statements about economic goods is FALSE?A. An economic good is a good for which the amount available is less than amount people want at zero price.B. An economic good is a good that is subject to competition.C. An economic good is a good for which more of it is not preferred.D. None of the above. (87-10)3. Which of the following statements about competition is FALSE?A. Waiting in line is a form of competition.B. The rules of competition define the criteria that determine who wins and who loses.C. Price is the main criterion of competition in a free enterprise economy.D. There is no competition in a socialist economy because resource allocation is determined by the government. (87-18)4. The Open Learning Institute accepted only 3 000 students out of 60 000 applicants. Which of the following methods of allocating the places would be discriminatory?A. First come, first served.B. Raising the entrance requirements until only 3 000 applicants were eligible.C. Random selection by computer.D. All of the above. (90-18)5. Which of the following describe(s) a shortage?A. A shortage exists whenever the price is fixed by the government.B. A shortage exists when a queue is found.C. A shortage exists when, at the given price, the quantity demanded exceeds the quantity supplied.D. All of the above. (90-21)6. ScarcityA. is implied by the existence of price.B. is the same as shortage.C. applies to all kinds of goods.D. All of the above. (92-05)7. Which of the following statements about scarcity is FALSE?A. Scarcity implies competition.B. Scarcity doesnt exist in a Robinson Crusoe economy.C. Scarcity implies discrimination.D. Scarcity means we want more than the amount available at zero price. (97-02)8. Which of the following about shortage is correct?A. Shortage is the same as scarcity.B. Shortage results form the absence of private property rights.C. Shortage means not enough of the good is available.D. There is no shortage as described in supply-demand analysis in the real world. (97-06)9. A free goodA. is provided by the government free of charge.B. has no use value and is not preferred.C. is a good the supply of which is so abundant that more of it is not preferred.D. is a gift of nature. (97-07)10. In a one-man economy,A. scarcity exists.B. competition is inevitable.C. transaction costs are positive.D. None of the above. (98-28)11. For a resource to be a good,A. the resource must be limited in quantity.B. having some of the resource must be preferable to having none of it.C. there must be competition for the resource.D. All of the above. (99-04)12. Speeding increases the risk of car accidents. The observation that some drivers do exceed speed limits impliesA. safety is not a good for these drivers.B. safety is a free good for these drivers.C. these drivers are willing to substitute speeding for safety.D. the postulate of constrained maximization cannot be used to analyze the behaviour of these drivers. (00-03)13. Which of the following statements about scarcity and shortage is correct?A. Scarcity implies shortage.B. The existence of market prices implies scarcity.C. Shortages are caused by reduction in supply.D. There is no scarcity in a one-man economy. (02-17)14. Scarcity A. is the same as shortage.B. does not exist in a one-man economy.C. exists for any economic good.D. exists for any and all goods. (03-01)15. Scarcity impliesA. everything is not enough.B. there is a shortage, and without a shortage there will be no price.C. than an individual is willing to sacrifice something for something else.D. a market will emerge. (04-01)16. Competition will NOT arise ifA. all individual are identical.B. there is a monopoly in each and every market.C. there is no market.D. all goods are free goods. (04-02)17. Which one of the following pairings has terms that are closest in meaning?A. scarcity and shortage.B. monopoly and competition.C. private property and social cost.D. competition and discrimination. (05-03)18. Which of the following exists in a one-man economy?A. shortage.B. Pareto Condition.C. institution.D. None of the above. (05-27)19. In a one-man economy, there will still beA. property rights.B. shortage.C. transaction costs.D. scarcity. (06-24)20. Scarcity impliesA. the market is the most efficient place for allocating resources.B. shortage if the market does not exist.C. the concept of equilibrium is essential.D. some people must be discriminated against in a society. (07-03)MC Answers on Basic Economic ProblemsACDDDABDCADCBCCDDDDD(ii) Economic Theory1. An economic theory is useful or testable ifA. it is potentially refutable by facts.B. it is logically consistent.C. it is not always true.D. All of the above. (87-29)2. Which of the following statements about economic theory is correct?A. A theory should be abandoned when its assumption are found to be unrealistic.B. A theory is useless when it cannot be refuted by facts.C. A useful theory may not have testable implications.D. It is important to know whether a theory is right or wrong. (90-22)3. A government official said, Our unemployment problem will be solved if the unemployed find jobs. The above statementA. is a definitional identity.B. tells us nothing about the real world.C. is a tautology.D. All of the above. (91-11)4. Selfishness and scarcityA. imply constrained maximization.B. are realistic assumptions.C. are assumptions that may yield testable implications.D. A and C above. (92-06)5. Experts complain that voluntary water conservation programs are not working and water shortages will continue to occur in Hong Kong. Which of the following conclusions is most consistent with economic theory?A. Water shortages are unavoidable as Hong Kongs population has grown rapidly in recent years.B. There will be no water shortages in Hong Kong if the price is determined in the market.C. Water conservation programs will be more effective if the government imposes a price ceiling on water.D. The demand for water is always inelastic because water is vital to human life. (92-15)6. Which of the following statements about an economic theory is correct?A. A useful theory must contain hypotheses that are refutable by facts.B. A testable implication may contain variables that are not observable.C. If a theory is to be useful, its assumptions must be realistic and its predictions must be correct.D. The implications of a theory must always be true. (93-19)7. Which of the following statements about an economic theory is INCORRECT?A. A useful theory must have refutable implications.B. A useful theory must be conceivably wrong.C. A theory is useful if its postulate are observable.D. A useful theory can have unrealistic assumptions. (94-29)8. Economic theory is useful becauseA. it is proved by evidence.B. it is refuted by evidence.C. it is refutable by evidence but not refuted.D. its assumptions are realistic. (95-07)9. Which of the following is NOT an attribute of a useful economic theory?A. The theory is always true.B. The implications of the theory are refutable by facts.C. The postulate may be unreal.D. The theory is logically consistent. (97-01)10. A useful theory shouldA. always be true.B. have testable implications.C. have observable postulates.D. have an indefinite number of possible outcomes. (98-06)11. Which of the following is a tautology?A. The area of Victoria Park is greater than that of Kowloon Park.B. Visitors should not litter in public areas.C. The quantity of vegetables supplied increases because more quantities are available for sale.D. The price of vegetables increases because the cost of production rises. (98-22)12. The explanatory power of an economic theory will be weaken ifA. the theory is consistent with maximizing behaviour.B. the number of the test conditions is increased.C. the postulates of the theory are not observable.D. the real world cannot be fully described. (99-02)13. Which of the following is a refutable statement?A. When an individuals preference changes, his consumption behaviour also changes.B. An increase in the number of university graduates will drive up the market wage rate.C. A demand curve can be either upward sloping or downward sloping, depending on whether the good is a Giffen Good or not.D. An inferior good has a negative income effect. (99-03)14. Which of the following statements is NOT refutable?A. If price falls, the quantity transacted will fall.B. If price falls, the quantity transacted will increase.C. If the income increases, the quantity transacted will increase.D. If the price elasticity of demand for a good is unitary, the percentage change in price will be the same as the percentage change in the quantity demanded. (00-01)15. A theory with an indefinite number of possible outcomesA. is more general in application.B. is easier to refute.C. has no refutable implication.D. is more realistic. (00-26)16. Which of the following statements is testable?A. An increase in the available quantity of a good will lead to a reduction in its market price, other things being equal.B. When two individuals have different marginal use values over a good, they will trade.C. Marginal use values of buyers and sellers are equal in market equilibrium.D. The demand curve is downward sloping. (00-27)17. A useful theoryA. may not be refutable by facts.B. must fully describe the real world.C. may start out from a tautology.D. must always be true. (02-08)18. Which of the following is a tautological statement?A. The price of seafood will go up if its supply is reduced.B. Bond price will be affected by interest rate fluctuations.C. Market equilibrium will be attained when the quantity demanded is equal to the quantity supplied.D. The crime rate will fall when heavier penalty is imposed on criminals. (02-18)19. A theory is said to be useful if it succeeds in explaining or interpreting observations. A theory is NOT useful ifA. its implications are refutable by facts.B. its assumptions are unrealistic.C. it is always true.D. it is logically consistent. (03-29)20. A necessary condition for the theory to be useful in explaining behaviour is:A. that is always true.B. that it must be conceivably false.C. that it is rejected by facts some of the time.D. that it is supported by facts most of the time. (04-03)21. A tautological statement is NOT refutable becauseA. it is conceptually useless.B. it may generate no theory.C. it is always true.D. it cannot be observed. (04-04)22. Individual maximization subject to constraints isA. a postulate.B. the nature of mankind.C. true for some societies but not for others.D. a useless statement. (04-06)23. Which of the following statements is testable (i.e., refutable by facts) as it alone stands?A. If the price of a good does down, its quantity demanded goes up.B. If tuition fees are high enough, schools will have no students.C. When a person jumps out of the windows, he is maximizing utility.D. The quantity of a good sold is equal to the quantity of that good purchased. (05-01)24. A testable implication requiresA. the support of an unrealistic theory.B. at least one observable variable.C. at least two observable variables.D. no observable variables because observations are always subject in nature. (05-02)25. If the number of test conditions specified for a theory increases,A. the theory will become more general in explaining behaviour.B. the explanatory power of the theory will be more restrained.C. the empirical usefulness of the theory will not be affected.D. the theory will become a tautology. (06-04)26. An economic theory is useful if it containsA. at least two observable variables.B. implications refutable by facts.C. postulate that are themselves testable.D. implications refuted by facts. (07-01)27. Armen Alchian once illustrated the methodology of science by predicting the density of leaves on trees, asserting that leaves would move around at midnight to maximize sunlight the next day. Which of the following is correct?A. Alchian is right because leaves do mov