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Đề cương Kinh tế Vi mô
ĐỀ CƯƠNG
KINH TẾ HỌC VI MÔ
GROUP: HỖ TRỢ HỌC TẬP SINH VIÊN CHẤT LƯỢNG CAO HVNH
(HTTPS://WWW.FACEBOOK.COM/GROUPS/380600739603628/)
2022
Ban Chuyên môn LCĐ Chất lượng Cao Học viện Ngân Hàng
TABLE OF CONTENT
THEORY ................................................................................................................................................. 2
CHAPTER 1: INTRODUCTION ...................................................................................................... 2
CHAPTER 2: SUPPLY AND DEMAND .......................................................................................... 3
CHAPTER 3: CONSUMERS, PRODUCERS AND EFFICIENCY OF MARKETS .................. 8
CHAPTER 4: THE THEORY OF CONSUMER CHOICE ......................................................... 10
CHAPTER 5: FIRM BEHAVIOR AND ORGANIZATION OF INDUSTRY ........................... 12
EXERCISE ............................................................................................................................................ 15
CHAPTER 1: INTRODUCTION .................................................................................................... 15
CHAPTER 2: SUPPLY AND DEMAND ........................................................................................ 21
CHAPTER 3 : CONSUMERS, PRODUCERS AND EFFICIENCY OF MARKETS ............... 28
CHAPTER 4: THE THEORY OF CONSUMER CHOICE ......................................................... 34
CHAPTER 5: FIRM BEHAVIOR AND ORGANIZATION OF INDUSTRY ........................... 38
THEORY
CHAPTER 1: INTRODUCTION
1. Economists study:
How people decide how much they work, what they buy, how much they save, and how they
invest their savings
How firms decide how much to produce and how many workers to hire
How society decides how to divide its resources between national defense, consumer goods,
protecting the environment, and other needs
2. Individual decision making:
People face trade-offs among alternative goals.
The cost of any action is measured in terms of forgone opportunities.
Rational people make decisions by comparing marginal costs and marginal benefits.
People change their behavior in response to the incentives they face.
3. Interactions among people:
Trade and interdependence can be mutually beneficial.
Markets are usually a good way of coordinating economic activity among people.
Governments can potentially improve market outcomes by remedying a market failure or by
promoting greater economic equality.
4. The economy as a whole:
Productivity is the ultimate source of living standards.
Growth in the quantity of money is the ultimate source of inflation.
Society faces a short-run trade-off between inflation and unemployment.
5. Economists are scientists.
Make appropriate assumptions and build simplified models
Use the circular-flow diagram and the production possibilities frontier
6. Others:
Microeconomists study decision making by households and firms and their interactions in
the Marketplace.
Macroeconomists study the forces and trends that affect the economy as a whole.
A positive statement is an assertion about how the world is.
A normative statement is an assertion about how the world ought to be.
As policy advisers, economists make normative statements.
Economists sometimes offer conflicting advice.
Differences in scientific judgments
Differences in values
II. SUPPLY
The supply curve shows how the quantity of a good supplied depends on the price.
Law of supply: as the price of a good rises, the quantity supplied rises; the S curve slopes
upward.
Shift vs. Movement Along the Supply Curve
Change in supply:
A shift in the supply curve
Occurs when a non-price determinant of supply
changes (like technology or costs)
Shifts in the supply curve are caused by changes
in:
Input prices
Technology
IV. ELASTICITY
1. The Elasticity of Demand
The price elasticity of demand
Measures how much the quantity demanded responds to changes in the price.
Is the percentage change in quantity demanded divided by the percentage change in price.
Q2 Q1 / Q2 Q1 / 2
Price elasticity of demand
P2 P1 / P2 P1 / 2
The Variety of Demand Curves
• Demand is perfectly inelastic:
– Price elasticity of demand = 0
• Demand is inelastic:
– Price elasticity of demand < 1
• Demand is elastic:
– Price elasticity of demand > 1
=====> The greater the price elasticity of demand –The flatter the demand curve
Demand tends to be more elastic if
Close substitutes are available
The good is a luxury rather than a necessity
The market is narrowly defined
Buyers have substantial time to react to a price change.
Chương trình “Hỗ trợ học tập” 5
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Total revenue (PxQ), total amount paid for a good
Moves in the same direction as P (inelastic D)
Moves in the opposite direction as P (elastic D)
The cross-price elasticity of demand
Measures how much the quantity demanded of one good responds to changes in the price
of another good
The income elasticity of demand
Measures how much the quantity demanded responds to changes in consumers’ income
2. The Elasticity of Supply
Price elasticity of supply
How much the quantity supplied of a good responds to a change in the price of that good
Percentage change in quantity supplied divided by the percentage change in price
The variety of the price elasticity of supply
If < 1, inelastic supply: quantity supplied moves proportionately less than the price
If > 1, elastic supply: quantity supplied moves proportionately more than the price
Depends on the time horizon under consideration. In most markets, supply is more
elastic in the long run than in the short run.
3. Supply, Demand, and Government Policies
A price ceiling is a legal maximum on the price of a good or service. Example: rent control.
Binding if below the equilibrium price: causing shortage.
Sellers must in some way ration the good or service among buyers.
A price floor is a legal minimum on the price of a good or service. Example: minimum
wage.
Binding if above the equilibrium price: causing surplus.
Buyers’ demands for the good or service must in some way be rationed among sellers.
Profit-maximizing rule: MC = MB
II. FIRM IN PERFECTLY COMPETITIVE MARKET
Perfect competitive market (no buyers ot sellers have market power – ablility to
manipulate prices)
CHARACTERISTICS THE COMPETITIVE FIRM
4. When a society cannot produce all the goods and services people wish to have, it is said that
the economy is experiencing
A. scarcity.
B. surpluses.
C. inefficiencies.
D. inequalities.
8. Sophia is planning her activities for a hot summer day. She would like to go to the local
swimming pool and see the latest blockbuster movie, but because she can only get tickets to
the movie for the same time that the pool is open she can only choose one activity. This
illustrates the basic principle that
A. people respond to incentives.
B. rational people think at the margin.
C. people face tradeoffs.
D. improvements in efficiency sometimes come at the expense of equality.
10. When the government attempts to improve equality in an economy the result is often
A. an increase in overall output in the economy.
B. additional government revenue since overall income will increase.
C. a reduction in equality.
D. a reduction in efficiency.
12. When computing the opportunity cost of attending a concert you should include
A. the price you pay for the ticket and the value of your time.
B. the price you pay for the ticket, but not the value of your time.
13. Ellie decides to spend two hours taking a nap rather than attending her classes. Her
opportunity cost of napping is
A. the value of the knowledge she would have received had she attended class.
B. the $24 she could have earned if she had worked at her job for those two hours.
C. the value of her nap less the value of attending class.
D. nothing, since she valued sleep more than attendance at class.
16. The marginal benefit Claire gets from purchasing a third pair of flip-flops is
A. the same as the total benefit of purchasing three pairs of flip-flops.
B. more than the marginal cost of purchasing the third pair of flip-flops.
C. the total benefit Claire gets from purchasing three pairs of flip-flops minus the total benefit
she gets from purchasing two pairs of flip-flops.
D. the total benefit Claire gets from purchasing four pairs of flip-flops minus the total benefit
she gets from purchasing three pairs of flip-flops.
20. When an economy is operating inside its production possibilities frontier, we know that
A. there are unused resources or inefficiencies in the economy.
B. all of the economy’s resources are fully employed.
C. economic growth would have to occur in order for the economy to move to a point on the
frontier.
D. in order to produce more of one good, the economy would have to give up some of the other
good.
22. The production possibilities frontier provides an illustration of the principle that
A. trade can make everyone better off.
B. governments can sometimes improve market outcomes.
C. people face trade-offs.
D. people respond to incentives.
25. For economists, statements about the world are of two types:
A. assumptions and theories.
B. true statements and false statements.
C. specific statements and general statements.
D. positive statements and normative statements.
11.C 12.A 13.A 14.C 15.B 16.C 17.C 18.A 19.B 20.A
21.A 22.C 23.B 24.D 25.A 26.C 27.B 28.B 29.B 30.A
2. A movement upward and to the left along a demand curve is called a(n)
A. increase in demand.
B. decrease in demand.
C. decrease in quantity demanded.
D. increase in quantity demanded.
4. “Other things equal, when the price of a good rises, the quantity demanded of the good falls,
and when the price falls, the quantity demanded rises.” This relationship between price and
quantity demanded
A. applies to most goods in the economy.
B. is represented by a downward-sloping demand curve.
C. is referred to as the law of demand.
D. All of the above are correct.
Figure 4-4
6. Refer to Figure 4-4. Which of the following would cause the demand curve to shift from
Demand B to Demand C in the market for DVDs in the United States?
A. a decrease in the price of DVDs
B. a decrease in the price of DVD players
11. Suppose you make jewelry. If the price of gold falls, then we would expect you to
A. be willing and able to produce less jewelry than before at each possible price.
B. be willing and able to produce more jewelry than before at each possible price.
C. face a greater demand for your jewelry.
D. face a weaker demand for your jewelry.
12. Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the
federal government increases the minimum wage by $1.00 per hour, then it is likely that the
A. demand for bicycle assembly workers will increase.
B. supply of bicycles will shift to the right.
C. supply of bicycles will shift to the left.
13. If car manufacturers begin using new labor-saving technology on their assembly lines, we
would not expect
A. a smaller quantity of labor to be used.
B. the supply of cars to increase.
C. the firms’ costs to fall.
D. individual car manufacturers to move up and to the right along their individual supply
curves.
14. Which of the following might cause the supply curve for an inferior good to shift to the
right?
A. an increase in input prices
B. a decrease in consumer income
C. an improvement in production technology that makes production of the good more
profitable
D. a decrease in the number of sellers in the market
15. If suppliers expect the price of their product to fall in the future, then they will
A. decrease supply now.
B. increase supply now.
C. decrease supply in the future but not now.
D. increase supply in the future but not now.
22. If a surplus exists in a market, then we know that the actual price is
A. above the equilibrium price, and quantity supplied is greater than quantity demanded.
B. above the equilibrium price, and quantity demanded is greater than quantity supplied.
C. below the equilibrium price, and quantity demanded is greater than quantity supplied.
D. below the equilibrium price, and quantity supplied is greater than quantity demanded.
23. Suppose roses are currently selling for $40 per dozen, but the equilibrium price of roses is
$30 per dozen. We would expect a
A. shortage to exist and the market price of roses to increase.
B. shortage to exist and the market price of roses to decrease.
C. surplus to exist and the market price of roses to increase.
D. surplus to exist and the market price of roses to decrease.
25. Years ago, thousands of country music fans risked their lives by rushing to buy tickets for
a Willie Nelson concert at Carnegie Hall. This behavior indicates
A. the ticket price was above the equilibrium price.
B. the ticket price was below the equilibrium price.
C. the ticket price was at the equilibrium price.
D. nothing about the equilibrium price.
33. Suppose the price of potato chips decreases from $1.45 to $1.25 and, as a result, the quantity
of potato chips demanded increases from 2,000 to 2,200. Using the midpoint method, the price
elasticity of demand for potato chips in the given price range is
A. 2.00.
B. 1.55.
C. 1.00.
D. 0.64.
34. Using the midpoint method, the price elasticity of demand for a good is computed to be
approximately 0.75. Which of the following events is consistent with a 10 percent decrease in
the quantity of the good demanded?
A. a 7.5 increase in the price of the good
B. a 13.33 percent increase in the price of the good
C. an increase in the price of the good from $7.50 to $10
D. an increase in the price of the good from $10 to $17.50
35. Using the midpoint method, the price elasticity of demand for a good is computed to be
approximately 2. Which of the following events is consistent with a 0.1 percent increase in the
price of the good?
A. The quantity of the good demanded decreases from 250 to 150.
B. The quantity of the good demanded decreases from 200 to 100.
C. The quantity of the good demanded decreases by 0.05 percent.
D. The quantity of the good demanded decreases by 0.2 percent.
Table 5-2
37. Refer to Table 5-2. Using the midpoint method, if the price falls from $60 to $40, the
absolute value of the price elasticity of demand is
A. 0.4.
B. 1.
C. 4.
D. 20.
38. Refer to Table 5-2. Using the midpoint method, if the price falls from $40 to $20, the
absolute value of the price elasticity of demand is
A. 20.
B. 10.
C. 2.33.
D. 0.43.
39. Refer to Table 5-2. Using the midpoint method, if the price falls from $80 to $60, the price
elasticity of demand is
A. zero.
B. unit elastic.
C. inelastic.
D. elastic.
40. Refer to Table 5-2. Using the midpoint method, if the price falls from $60 to $40, the price
elasticity of demand is
A. zero.
B. inelastic.
C. unit elastic.
D. elastic.
KEY EXERCISE CHAPTER 2
1.A 2.C 3.D 4.D 5.D 6.B 7.C 8.D 9.C 10.D
11.B 12.C 13.D 14.C 15.B 16.C 17.B 18.D 19.A 20.C
21.B 22.A 23.D 24.C 25.B 26.B 27.C 28.C 29.C 30.B
31.B 32.C 33.D 34.B 35.D 36.C 37.B 38.D 39.D 40.C
2. Consumer surplus is
A. the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for
it.
B. the amount a buyer is willing to pay for a good minus the cost of producing the good.
C. the amount by which the quantity supplied of a good exceeds the quantity demanded of the
good.
D. a buyer's willingness to pay for a good plus the price of the good.
Table 7-7
The following table represents the costs of five possible sellers.
Seller Cost
Abby $1,500
Bobby $1,200
Carlos $1,000
Dianne $750
Evalina $500
Chương trình “Hỗ trợ học tập” 29
Ban Chuyên môn LCĐ Chất lượng Cao Học viện Ngân Hàng
11. Refer to Table 7-7. If the market price is $1,000, the producer surplus in the market is
A. $700.
B. $750.
C. $2,250.
D. $3,700.
12. Refer to Table 7-7. If the market price is $900, the producer surplus in the market is
A. $350.
B. $550.
C. $750.
D. $1,000.
13. Refer to Table 7-7. If the market price is $1,100, the combined total cost of all participating
sellers is
A. $3,700.
B. $2,700.
C. $2,250.
D. $1,250.
14. Refer to Table 7-7. If the market price is $900, the combined total cost of all participating
sellers is
A. $3,700.
B. $2,700.
C. $2,250.
D. $1,250.
15. Refer to Table 7-7. If the price is $1,000,
A. Bobby is an eager supplier.
B. Dianne is an eager supplier.
C. Abby’s producer surplus is $500.
D. All of the above are correct.
16. Refer to Table 7-7. If the price is $775, who would be willing to supply the product?
A. Abby and Bobby
B. Abby, Bobby, and Carlos
C. Carlos, Dianne, and Evalina
D. Dianne and Evalina
17. Refer to Table 7-7. Suppose each of the five sellers can supply at most one unit of the good.
The market quantity supplied is exactly 3 if the price is
A. $670.
B. $770.
C. $970.
D. $1,170.
18. Refer to Table 7-7. Suppose each of the five sellers can supply at most one unit of the good.
The market quantity supplied is exactly 4 if the price is
20. Suppose consumer income increases. If grass seed is a normal good, the equilibrium price
of grass seed will
A. decrease, and producer surplus in the industry will decrease.
B. increase, and producer surplus in the industry will increase.
C. decrease, and producer surplus in the industry will increase.
D. increase, and producer surplus in the industry will decrease.
27. Raisin bran and milk are complementary goods. A decrease in the price of raisins will
A. increase consumer surplus in the market for raisin bran and decrease producer surplus in the
market for milk.
B. increase consumer surplus in the market for raisin bran and increase producer surplus in the
market for milk.
C. decrease consumer surplus in the market for raisin bran and increase producer surplus in the
market for milk.
D. decrease consumer surplus in the market for raisin bran and decrease producer surplus in the
market for milk.
28. PlayStations and PlayStation games are complementary goods. A technological advance
in the production of PlayStations will
A. increase consumer surplus in the market for PlayStations and decrease producer surplus in the
market for PlayStation games.
B. increase consumer surplus in the market for PlayStations and increase producer surplus in the
market for PlayStation games.
C. decrease consumer surplus in the market for PlayStations and increase producer surplus in the
market for PlayStation games.
D. decrease consumer surplus in the market for PlayStations and decrease producer surplus in
the market for PlayStation games.
11.B 12.B 13.C 14.D 15.B 16.D 17.D 18.D 19.A 20.B
21.B 22.A 23.B 24.C 25.A 26.A 27.B 28.B 29.A 30.C
1. Consider two goods, pizza and Pepsi. The slope of the consumer’s budget constraint is
measured by the
A. consumer’s income divided by the price of Pepsi.
B. relative price of pizza and Pepsi
C. consumer’s income divided by the price of pizza.
D. spending on pizza divided by the consumer’s income
2. If a consumer’s income decreases, the budget constraint for Pepsi and pizza will
A. shift outward, parallel to the old budget constraint.
B. shift inward, parallel to the old budget constraint.
C. rotate outward towards pizza because we can afford more pizza
D. rotate outward towards Pepsi because we can afford more Pepsi
3. If the relative price of a ticket to a concert is 3 times the price of a meal at a good restaurant,
the opportunity cost of a concert ticket is the
A. slope of the budget constraint.
B. slope of the indifference curve.
C. intercept on the concert axis.
D. intercept on the restaurant axis
6. The theory of consumer choice can often provide insight into the behavior of
A. individuals who make rational choices.
B. individuals who make constrained choices.
C. individuals who are unaware of how to maximize their well-being.
D. irrational consumers
8. A budget constraint
A. shows the prices that a consumer chooses to pay for products he consumes.
B. shows the purchases made by consumers.
C. shows the consumption bundles that a consumer can afford.
D. represents the bundles of consumption that makes a consumer equally happy.
9. Assume that a college student spends her income on Coke and Snickers. The price of a
Snickers candy bar is $0.50, and a can of Coke is $0.75. If she has $20 of income, she could
choose to consume
A. 10 Snickers bars and 20 cans of Coke.
B. 15 Snickers bars and 18 cans of Coke
C. 22 Snickers bars and 14 cans of Coke.
D. 24 Snickers bars and 12 cans of Coke.
10. Assume that a college student spends her income on Coke and Snickers. During finals week,
the price of a Snickers candy bar is $0.75, and a can of Coke is $1.00. If she has $20 of income,
she could choose to consume
A. 8 Snickers bars and 15 cans of Coke.
B. 7 Snickers bars and 16 cans of Coke.
C. 4 Snickers bars and 17 cans of Coke.
D. 2 Snickers bars and 20 cans of Coke
15. The rate at which a consumer is willing to exchange one good for another, and maintain a
constant level of satisfaction, is called the
A. relative expenditure ratio.
B. value of marginal product.
C. marginal rate of substitution.
D. relative price ratio
16. All of the following are properties of indifference curves, EXCEPT indifference curves
A. are downward sloping
B. that are closer to the origin are preferable to higher indifference curves.
C. are bowed in toward the origin.
D. do not cross
17. The relationship between the marginal utility that George gets from eating a bag of cookies
and the number of bags he eats per month is as follows:
19. When two goods are perfect substitutes, the marginal rate of substitution
A. is constant
B. decreases as the scarcity of one good increases.
C. increases as the scarcity of one good increases.
D. increases as the abundance of one good increase
20. When two goods are perfect complements, the indifference curves are
A. positively sloped.
B. negatively sloped.
C. straight lines.
D. right angles
1.B 2.B 3.A 4.B 5.C 6.B 7.B 8.C 9.A 10.C
11.B 12.B 13.C 14.C 15.C 16.B 17.C 18.D 19.A 20.D
2. On a 100-acre farm, a farmer is able to produce 3,000 bushels of wheat when he hires 2
workers. He is able to produce 4,400 bushels of wheat when he hires 3 workers. Which of the
following possibilities is consistent with the property of diminishing marginal product?
A. The farmer is able to produce 5,600 bushels of wheat when he hires 4 workers.
B. The farmer is able to produce 5,800 bushels of wheat when he hires 4 workers.
C. The farmer is able to produce 6,000 bushels of wheat when he hires 4 workers.
D. Any of the above could be correct.
3. If the total cost curve gets steeper as output increases, the firm is experiencing
A. diminishing marginal product.
B. increasing marginal product.
C. diseconomies of scale.
D. economies of scale.
4. In the short run, a firm that produces and sells cell phones can adjust
A. how many workers to hire.
B. the size of its factories.
C. where to produce along its long-run average-total-cost curve.
D. All of the above are correct.
6. Economic profit
A. will never exceed accounting profit.
B. is most often equal to accounting profit.
10. If a competitive firm is currently producing a level of output at which marginal cost exceeds
marginal revenue, then
A. a one-unit decrease in output will increase the firm's profit.
B. a one-unit increase in output will increase the firm's profit.
C. total revenue exceeds total cost.
D. total cost exceeds total revenue.
11. In a competitive market, the actions of any single buyer or seller will
A. have no impact on the market price.
B. discourage entry by competitors.
C. influence the profits of other firms in the market.
D. influence the revenues earned by competing firms by adjusting his output.
13. In a competitive market, no single producer can influence the market price because
A. consumers have more influence over the market price than producers do.
B. government intervention prevents firms from influencing price.
C. producers agree not to change the price.
D. many other sellers are offering a product that is essentially identical.
14. For an individual firm operating in a competitive market, marginal revenue equals
A. average revenue and the price for all levels of output.
B. average revenue, which is greater than the price for all levels of output.
C. average revenue, the price, and marginal cost for all levels of output.
D. marginal cost, which is greater than average revenue for all levels of output.
15. When a competitive firm doubles the quantity of output it sells, its
A. average revenue doubles.
B. marginal revenue doubles.
C. total revenue doubles.
D. profits must increase.
16. A profit-maximizing firm in a competitive market is currently producing 200 units of output.
It has average revenue of $9 and average total cost of $7. It follows that the firm's
A. average total cost curve intersects the marginal cost curve at an output level of less than 200
units.
B. average variable cost curve intersects the marginal cost curve at an output level of less than
200 units.
C. profit is $400.
D. All are correct.
18. A firm will shut down in the short run if, for all positive levels of output,
A. its losses exceed its fixed costs.
B. its total revenue is less than its variable costs.
C. the price of its product is less than its average variable cost.
19. In a competitive market the current price is $7, and the typical firm in the market has ATC
= $7.50 and AVC = $7.15.
A. In the short run firms will shut down, and in the long run firms will leave the market.
B. In the short run firms will continue to operate, but in the long run firms will leave the market.
C. New firms will likely enter this market to capture any remaining economic profits.
D. The firm will earn zero profits in both the short run and long run.
21. A profit-maximizing monopolist charges a price of $14. The intersection of the marginal
revenue curve and the marginal cost curve occurs where output is 15 units and marginal cost
is $7. What is the monopolist’s profit?
A. $90
B. $105
C. $180
D. Not enough information is given to determine the answer.
12D 13D 14A 15C 17A 18D 19A 20A 21D 22B