Midexam
Microeconomics
Instructor: Dr. Chien-Ho Wang
April 30, 2007
期中考為關書考試, 做弊以零分計算. 請於考試時關閉手機. 此考試可攜帶計算
機, 字典或者電子字典. 請依據課本內容, 看清題義作答. 做答時請對所有題目
(選擇題及計算題)詳列作答理由及計算步驟, 理由及步驟不清不予記分.
題目隨答案卷繳回 請在兩份考卷 (題目卷及答案卷)寫上姓名.(題目共 頁)
姓名:
系級:
學號:
一、選擇題 (60%)
1. Risk-neutral is the term used to describe an individual
(a) who is indifferent between a sure thing and a risky gamble with the same
probability of occurring as the sure thing.
(b) who is indifferent between a sure thing and a risky gamble with the same
expected outcome as the sure thing.
(c) who is indifferent between a sure thing and a risky gamble with a higher
expected outcome as the sure thing.
(d) who is indifferent between a sure thing and a risky gamble with a lower
expected outcome as the sure thing.
2. Suppose the von Neumann-
the risky gamble, then the individual is
(a) risk-neutral.
(b) risk-averse.
(c) risk-loving.
(d) rational.
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3. Diversification reduces risk by
(a) increasing exposure to risk.
(b) varying the collection of investments.
(c) decreasing utility.
(d) decreasing income.
4. In the short-run, the number of firms in the industry
(a) is fixed and consists only of those firms that are currently producing.
(b) is variable and includes those firms that are currently entering the industry.
(c) increases if firms are making above normal economic profit.
(d) increases if firms are making zero economic profit.
5. An industry in which factor prices are inversely related to industry output, so input
prices decrease as industry output expands and increase as industry output
contracts is a
(a) constant-cost industry.
(b) increasing-cost industry.
(c) decreasing cost industry.
(d) perfectly competitive industry.
6. If a 1 percent increase in price leads to a .7 percent increase in quantity supplied,
the short-run supply curve is
(a)
elastic.
(b)
inelastic.
(c)
unit elastic.
(d)
perfectly inelastic.
7. In the long run, the producer surplus is greater than zero for
(a) increasing-cost industries only.
(b) constant-cost industries only.
(c) constant-cost and increasing cost industries.
(d) decreasing-cost and increasing-cost industries.
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8. Economies of scale exist when the production function exhibits
(a) decreasing returns to scale.
(b) increasing returns to scale.
(c) constant returns to scale.
(d) diminishing marginal returns.
9. For a profit-maximizing monopolist, using the Lerner Index,
(a) the more elastic is the demand, the smaller is the degree of monopoly power.
(b) the less elastic is the demand, the smaller is the degree of monopoly power.
(c) the more elastic is the demand, the greater is the degree of monopoly power.
(d) the less elastic is the demand, the greater is the degree of monopoly power.
10. Which of the following is not a legal barrier to entry in a monopolized market?
(a). Patent.
(b). An exclusive franchise.
(c). Decreasing average cost.
(d). An exclusive license.
11. The supply curve for a monopoly is given by
(a). the firm’s marginal cost curve above the average variable cost curve.
(b). the one point on the demand curve that corresponds to the quantity for which
price is equal to marginal cost.
(c). the entire demand curve above the point where price is equal to average cost.
(d). the one point on the demand curve that corresponds to the quantity for which
marginal revenue equals marginal cost.
12. With third-degree price discrimination,
(a) price is lower in the market with less demand.
(b) price is lower in the market with more demand.
(c) price is lower in the market with the less elastic demand.
(d) price is lower in the market with the more elastic demand.
二、計算題 (40%)
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1.
(10%) Suppose your von-Neumann-Morgenstern utility function is U(Y)  Y 3 . What is
your attitude toward risk? Please calculate measure of absolute risk aversion and
measure of relative risk aversion.
2. (10%) The demand curve for a monopolist is:
P  490  2Q .
TC  20  10Q  2Q 2 . Thus, MC  10  4Q . Solve for the profit-maximinizing level
of output and price for the monopolist. Calculate profit.
3.
(20%) The accompanying diagram shows the market for two bedroom
apartments in Anytown. The demand is given as P  $1100 –
is given as P  $100 
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q and the supply
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5
q.
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The equilibrium rent is $600 per month and 700 apartments would be rented at that
price.
(a) What are the consumer surplus and the producer surplus?
(b) Suppose the local government of Anytown imposes rent control of $500 per month.
How many apartments will be rented at that price? What is the consumer surplus?
What is the producer surplus?
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