6. A key characteristic of a competitive market is that
(A) producers sell nearly identical products
(B) firms minimize total costs
(C) firms have price setting power
(D) government antitrust laws regulate competition 

2. Alan, Bob, and Carlos are woodworkers who all make tables and chairs. In one month, Alan can make 6 tables or 18 chairs, whereas Bob can make 6 tables or 12 chairs, and Carlos can make 4 tables or 4 chairs. Who has the lowest opportunity cost of making tables? (A) Alan (B) Bob (C) Alan and Bob (D) Carlos

3. A decrease in the price of a good will (A) increase demand (B) decrease demand (C) increase quantity demanded (D) decrease quantity demanded

4. Which of the following events may NOT result in a rising equilibrium price of certain goods? (A) When an effective price ceiling is set (B) When there is a loss caused by a natural disaster (C) When the government opens up exports of the goods (D) When the price of substitutes goods rises

5. A supermarket decides to reduce the price of its own brand of baked beans as a special offer for one week only. During this week, it discovers that its total revenue from the sale of own-brand baked beans increases. This indicates that (A) the demand for its own brand of baked beans is elastic with respect to price (B) the demand for its own brand of baked beans is elastic with respect to income (C) the demand for its own brand of baked beans is inelastic with respect to price (D) its own brand of baked beans is an inferior good

7. An oligopoly with a dominant price leader will produce a level of output (A) between that which would prevail under perfect competition and that which a monopoly would choose in the same industry (B) between that which would prevail under competition and that which a monopolistic competitor would choose in the same industry (C) equal to what a monopolist would choose in the same industry (D) the same as that which would prevail under competition

8. All externalities (A) cause markets to fail to allocate resources efficiently (B) cause equilibrium prices to be too high (C) benefit producers at the expense of consumers (D) cause equilibrium quantity to be too high

複選題9. Which of the following goods is the best example of a public good? (A) Online TV service provided by Netflix (B) Garbage-collection services that are provided by a municipal government (C) Music that is broadcast over the airwaves by a privately-owned FM radio station (D) Electricity provided by renewable energy sources

10. Of the following countries, which country’s government collects the largest amount of tax revenue as a percentage of that country’s total income? (A) Denmark (B) Japan (C) Taiwan (D) United States

11. A binding price ceiling (A) causes a surplus (B) causes a shortage (C) increases consumers’ surplus (D) increases producers’ surplus

12. Minimum-wage laws (A) affect highly-educated workers more than high school dropouts (B) cause labor shortages, which further raise wages above equilibrium (C) reduce unemployment (D) create unemployment