ĐỀ 2

SECTION A
Question 1: The economising problem is essentially one of deciding how
to make the best use of: (1)
A. Virtually unlimited resources, to satisfy virtually unlimited wants.
B. Limited Resources, to satisfy virtually unlimited wants.
C. Unlimited resources, to satisfy limited wants.
D. Limited resources, to satisfy limited wants.
Question 2: The production possibilities curve is bowed out from the
origin because:
A. of increasing opportunity cost.
B. economic resources are perfectly substitutable in the production of the two
products.
C. of underemployment.
D. equal quantities of both products are produced at each possible point on the
curve.
Question 3: The construction of demand and supply curves assumes that
the primary variable that influences decision to produce and purchase
goods is:
A. Price
B. Expectations
C. Preferences
D. Incomes
Question 4: If X is a normal good, a rise in income will shift the:
A. Supply curve for X to the left
B. Supply curve for X to the right
C. Demand curve for X to the left
D. Demand curve for X to the right
Question 5: If the price of K declines, the demand curve for the
complementary product J will: (4)
A. Shift to the left.
B. Decrease
C. Shift to the right
D. remain unchanged
Question 6: If Vietnam Airlines increases its total revenue when it
discounts its price by 10% then
A. Its passengers’ demand is elastic
B. its passengers’ demand is inelastic
C. it should continue to decrease its price as demand elasticity for the service
doesn’t change
D. it means the provider must be a monopolist
Question 7: If rice demand is inelastic, a good rice harvest will cause the
rice growers’ revenue to: (6)
A. Increase because of the increase in the quantity that farmers can sell
B. Remain unchanged, because the increase in the quantity that can be sold
will be matched by an equal decrease in price.
C. Increase because of downward movement along the supply curve,
encouraging an increase in demand.
D. Decrease because of a percentage fall in price greater than the
percentage increase in quantity sold.
Question 8: The sellers’ tax incident would be higher if: (7)
A. The price elasticity of demand is higher
B. The price elasticity of demand is lower.
C. The price elasticity of demand is perfectly elastic
D. None of the above

Question 9: Suppose a firm’s output increase from 910 to 1170 units when
it increases its labor input from 63 to 64 workers. The marginal product of
the last worker is: (8)
A. 1070
B. 910
C. 260
D. 64
Question 10: If marginal cost is falling and is lower than average total cost
then
A. average total cost is falling
B. average total cost is constant
C. average total cost is rising
D. average total cost is at a minimum
Question 11: A firm in a competitive market is producing at the level of
output that maximises profit. At this output level: (10)
A. marginal revenue equals price
B. average revenue equals marginal cost
C. marginal revenue equals marginal cost
D. All the above
Question 12: A firm will cease production in the short-run if it cannot:
A. cover its total costs at any level of output
B. cover its total fixed costs at any level of output
C. cover its total variable cost at any level of output
D. earn a normal profit at any level of output
Question 13:
Output Total cost
0 2000
10 3000
20 4000
30 4500
In a competitive market. A Firm has output and total cost data as shown above.
What is the level of average variable cost when the Firm produces 20 units of
output?
A. $100
B. $200
C. $2000
D. $1000
Question 14: If a firm doubles its output in the long run and its unit costs
of production decline, we can conclude that: (14)
A. technological progress has occurred.
B. economies of scale are being realised.
C. the firm is encountering diminishing returns.
D. diseconomies of scale are being encountered.
Question 15: Which of the following is not characteristics of a purely
competitive industry?
A. A large number of sellers.
B. Identical products.
C. Substantial barriers to entry.
D. Relatively small firms.
Question 16: Consider the following relationship between cost and output
for a perfectly competitive firm: (11)
Total cost = $20 $30 $41 $54
Q = 3 4 5 6
If the market price of the firm’s output is $12, how many units of output should
the firm produce:
A. 3
B. 4
C. 5
D. 6
Question 17: Price will always be greater than marginal revenue for a
monopolist because: (17)
A. The firm faces a perfectly elastic demand curve
B. The demand curve is about the ATC curve
C. Since no new firms can enter the market, the firm is not forced to lower price
to increase quantity sold
D. The firm must lower price for all units sold in order to increase the
quantity sold.
Question 18: Mutual interdependence’ means that each oligopolistic firm:
A. faces a perfectly elastic demand for its product.
B. must consider the reactions of its rivals when it determines its price
policy.
C. produces a product identical to those of its rivals.
D. produces a product similar, but not identical, to the products of its rivals.
Question 19: If the four-firm concentration ratio for industry X is 80, this
means that:
A. the four largest firms account for 80% of total sales.
B. each of the four largest firms accounts for 20% of total sales.
C. the four largest firms account for 20% of total sales.
D. The industry is monopolistically competitive.
Question 20: Under monopolistic competition, the differentiation of
products implies that:
A. Individual firms face downward sloping demand curve
B. Both marginal cost and marginal revenue will increase as output increase
C. Individual firms will make economic profit even in the long run
D. Individual firms will produce at minimum average cost in the long run.

SECTION B
True/False Section:
1. In attempting to maximize profits, a firm will always produce at that
output where total revenue is at a maximum.
False. Total Profit = Total Revenue – Total Cost. Because total profit depends
on 2 variables, so only total revenue is maximized is not enough. To maximize
profits, the firm must produce at the output where the gap between total revenue
and total cost is greatest.
(VẼ HÌNH HÌNH TRÊN THÔI)
2. If demand increases and supply simultaneously decreases, equilibrium
price will rise
True. Because when demand increases, and supply decreases simultaneously,
there will be shortage as demand exceeds supply, so the price will rise to
eliminate that shortage.
SECTION C

a.
Pm=4
Qm= 50
The firm makes profit maximization when MR=MC => Profit maximizing output
is 50, at the price of 4$ (depend on Q* and D)
Total maximum profit = Q*.(P* - ATC*) = 50.(4 - 3.5) = 25$.
Total Revenue = P*.Q* = 4 x 50 = 200$.

b.
This demand schedule is negatively sloped, whereas that of a perfectly
competitive firm is horizontal.
Under perfect competition, the demand curve is perfectly elastic. It is due to the
existence of a large number of firms. Price of the product is determined by the
industry and each firm has to accept market price. On the other hand, under
imperfect competition, the average revenue curve slopes downward, AR and
MR curves are separate from each other.

ĐỀ 4
SECTION A (GIỐNG ĐỀ 2 CHỈ ĐẢO THỨ TỰ)

SECTION B
1. In perfect competition, like the market demand curve, the firm’s demand
curve is negative slope
False. In perfect competition, the firm’s demand curve is horizontal demand
curve (perfectly elastic) at market equilibrium. It is due to the existence of a
large number of firms. Price of the product is determined by the industry and
each firm has to accept that price.
2. If demand decrease and supply simultaneously increase, equilibrium
quantity will fall
False. Because if demand decreases and supply simultaneously increases, the
equilibrium price will fall but we can’t identify how equilibrium quantity changes
(it can increase or decrease).
We have 3 cases:
(VẼ TƯƠNG ỨNG VỚI TỪNG CASE)
Case 1: The shift in the demand curve as well as the shift in the supply curve
is the same: In this case, the equilibrium quantity will remain unchanged.
Case 2: The shift in the demand curve is larger than the shift in the supply
curve: The equilibrium quantity will fall.
Case 3: The shift in the demand curve is smaller than the shift in the supply
curve: The equilibrium quantity will rise.
SECTION C
a.
Pm=5,5
Qm= 60
The firm makes profit maximization when MR=MC => Profit maximizing output
is 60, at the price of 5,5$ (depend on Q* and D)
Total maximum profit = Q*.(P* - ATC*) = 60.(5,5 - 4.5) = 60$.
Total Revenue = P*.Q* = 5,5x 60 = 330$.

b.
This demand schedule is negatively sloped so this curve shows an imperfectly
competitive firm, whereas that of a perfectly competitive firm is horizontally
sloped.
Under perfect competition, the demand curve is perfectly elastic. It is due to the
existence of a large number of firms. Price of the product is determined by the
industry and each firm has to accept market price. On the other hand, under
imperfect competition, the average revenue curve slopes downward, AR and
MR curves are separate from each other.

ĐỀ 1

SECTION A:
1. The economising problem is essentially one of deciding how to make
the best use of:
A virtually unlimited resources, to satisfy virtually unlimited wants.
B. limited resources, to satisfy virtually unlimited wants.
C unlimited resources, to satisfy limited wants.
D: limited resources, to satisfy limited wants.
2. Production possibilities (options) A B C D E F
Capital goods: 543 2 1 0
Consumer goods: 0 5 9 12 14 15
Refer to the above data, if the economy is producing at production option
C, the opportunity cost of the tenth unit of consumer goods will be:
A: 4 units of capital goods.
B: 2 units of capital goods.
C: 3 units of capital goods.
D: 1/3 of a unit of capital goods.
3. Which of the following could be expected to produce an increase in the
demand for chicken
A. a reduction in the price of chicken food
B. a decrease in the price of chicken
C. an increase in the supply of chicken
D an increase in the price of pork.
4. If the price of K declines, the demand curve for the complementary
product J will: (CÂU NÀY GIỐNG HỆT ĐỀ 2 VÀ 4, NÊN CHỌN C)
A. shift to the left.
B. decrease.
C shift to the right. (THEO TRƯƠNG HUY VÀ MẠNG, TÍN HƠN)
D. remain unchanged. (THEO KIÊN LÊ ĐIỀN)
5. Price discounting of 3-star Hotel daily room tariffs has shown that
cutting prices by 10% leads to 12% more rooms being booked. We can
conclude that
A.demand for hotel rooms is price elastic and discounting increases
revenue
B. demand for hotel rooms is price elastic and discounting reduces revenue
C demand for hotel rooms is price inelastic and discounting increases revenue
D. demand for hotel rooms is price inelastic and discounting reduces revenue
6. If rice demand is inelastic, a good rice harvest will cause rice growers'
revenue to:
A.increase because of the increase in the quantity that farmers can sell
B. remain unchanged, because the increase in the quantity that can be sold will
be matched by an equal decrease in price
C. increase because of a downward movement along the supply curve,
encouraging an increase in demand
D. decrease because of a percentage fall in price greater than the
percentage increase in quantity sold
7. The buyer tax incidence would be higher if
A the price clasicity of demand is higer
B the price elasicity of demand is lower
C. the price clasicity of demand is perfectly elastic
D. None of the above
8. Suppose that a firm's output increase from 910 to 1070 units when it
increases its labour input from 63 to 64 workers. The marginal product of
the last worker is:
A 1070
B. 910
C 64
D. 160
9. Marginal cost may be defined as
A: rate of change in total fixed cost which results from producing one more unit
of output
B change in total cost which results from producing one more unit of
output.
C. change in average variable cost which results from producing one more unit
of output.
D: change in average total cost which results from producing one more unit of
output

10. A firm in a competitive market is producing at the level of output that

maximises profit. At this output level:
A. marginal revenue equals price
B average revenue equals marginal cost
C.Marginal revenue equals marginal cost
D. all the above

11.Consider the following relationship between cost and output for a

perfectly competitive firm:
Total cost= 20 30 41 54
Q= 3 4 5 6
If the market price of the firm's output is 12 how many units of output
should the form produce
A3
B4
C5
D6

12. A firm finds that its MR=MC output. TC=1000, VC=800, FC=200 ,
TR=900. This firm should
A.close down in the short run.
B. produce because the resulting loss is less than its FC
C produce because it will realise an economic profit.
D: liquidate its assets and go out of business.

13. Which of the following do firms in monopolistic competition, oligopoly

and monopoly have in common. All have:
A. strongly competitive features
B downward sloping demand schedules
C. full control of their output price
D. a small number of producers

14. If a firm doubles its output in the long run and its unit costs of
production decline, we can conclude that
A. technological progress has occurred
B economies of scale are being realised.
C: the firm is encountering diminishing returns.
D: diseconomies of scale are being encountered.

15. In a perfectly competitive industry, the market price of the product is

$12 Firm A is producing the output at which average cost equals marginal
cost, both of which are $10. To maximize its profits, firm A should:
A.decrease output
B Expand output
C leave output unchanged
D. increase its selling price

16. Which of the following best describes the situation of firms in

monopolistic competition?
A. they are normally as large as monopolies
B. they enjoy substantial barriers to entry
C they are typified by inter-dependence between firms
D they produce similar, but not identical products

17. Price will always be greater than marginal revenue for a monopolist
because:
A. The firm faces a perfectly elastic demand curve
B. The demand curve is above the ATC curve
C. Since no new firms can enter the market, the firm is not forced to lower
price to increase quantity sold
D. The firm must lower price for all units sold in order to increase the quantity
sold

18. Compare to perfectly competitive firm, a monopolist firm:

A .Produce a higher level of output and make a higher price
B. Produce a lower level of output and make a lower price
C Produce a lower level of output but make a higher price
D. Produce a higher level of output but make a lower price

19. According to the kinked demand curve theory, an oligopolistic firm

will:
 A always earn economic profits
B. be faced with a more inelastic demand curve if it increases price
C be faced with a more elastic demand curve if it reduces price
D match price decreases and ignore price increases of rivals

20. Price competition among oligopolists usually

A. Results in higher profits for all firms as a result of the increase in sales
B Lowers profits for all firms as total revenue for the industry falls
C. Takes the form of advertising and product differentiation
D. Is frequent because it is a simple way to compete with rivals.
SECTION B: (GIỐNG HỆT ĐỀ 2 CHỈ ĐẠO THỨ TỰ)
SECTION C:
The table below includes Mr.Chang’s firm’s short run cost data
1. Complete the table

Output Total Total Total Average Average Average Marginal

Fixed Variable Cost $ Fixed Variable Total Cost $
Cost $ Cost $ Cost $ Cost $ Cost $

0 500 - 500 - 0 - -
1 500 70 570 500 70 570 70

2 500 100 600 250 50 300 30

3 500 120 620 166.66 40 206.66 20

4 500 160 660 125 40 165 40

5 500 210 710 100 42 142 50

6 500 270 770 83.33 45 128.33 60

7 500 350 850 71.43 50 121.43 80

2. Illustrate and explain shape of the marginal cost by the data and graph

(TRỤC TUNG BIỂU ĐỒ LÀ P, NHỚ VIẾT THÊM “MC” Ở ĐẦU CÁI ĐƯỜNG
ĐỎ TRÊN HÌNH, KHÔNG RÕ VẼ HÌNH KIỂU GÌ THÌ XEM HƯỚNG DẪN DƯỚI
ĐÂY CỦA TRƯƠNG HUY NÀY)

The MC curve in the short run is a U-shaped curve due to the law of variable
proportions. In the initial production stages, MC is falling (from $70 to 20$) due
to application of increasing returns (or decreasing costs) to factor. Then the MC
stops falling and reaches its minimum point ($20) due to the existence of
constant returns to a factor. After the minimum point ($20) MC starts rising (from
$20 to $80) due to the onset of decreasing returns of variable factor. This trend
of MC curve initially falling then becoming constant at its minimum point and
then rising makes it look like the English alphabet - U.
(CỦA CHÂU GIANG: At low levels of output, the firm experiences increasing
marginal product, and the marginal cost curve falls. Eventually, the firm starts
to experience diminishing marginal product, and the marginal cost curve starts
to rise. This combination of increasing then diminishing marginal product also
makes the marginal cost curve U-shape )

ĐỀ 3
SECTION A:
1. The Vietnam's economy relies
A. exclusively on the market mechanism
B. exclusively on the market mechanism in a mixed economy
C. exclusively on the command mechanism
D. equally on market and command mechanisms in a mixed economy
2. Which of the following is a normative statement?
A. Pollution is an example of an external cost.
B. Firms that pollute should be forced to shut down
C. Pollution makes people worse off.
D. Pollution imposes opportunity costs on others.
3. If both demand and supply increase, then equilibrium price
A. will rise and quantity will increase
B. could rise or fall or unchanged and quantity will increase
C. will fall and quantity will increase
D. will rise and quantity could either increase or decrease
4. A relative price is
A. A price expressed in terms of money.
B. the ratio of one money price to another.
C. what you get paid for babysitting your cousin.
D. equal to a money price.
5. The quantity demanded of a good or service is the amount that
A. consumers plan to buy during a given time period at a given price.
B. firms are willing to sell during a given time period at a given price.
C. consumer would like to buy but might no be able to afford.
D. is actually bought during a given time period at a given price.
6. In the book market, the supply of books will decrease if any of the
following occur except
A. a decrease in the number of book publishers.
B. an increase in the future expected price of a bo
C. a decrease in the price of a book.
D. an increase in the price of paper.
7. A country has a comparative advantage in a product if the world
price is
A. lower than that country's domestic price without trade.
B. higher than that country's domestic price without trade.
C. equal to that country's domestic price without trade.
D. not subject to manipulation by organizations that govern international
trade.
8. If, as people's incomes increase, the quantity demanded of a good
decreases, the good is called
A. a substitute.
B. an inferior good.
C. a normal good.
D. a complement.
9. A market for good given by the following function: . Consun
producer surplus at the equilibrium point are:
A. CS=121;PS=242
B. CS=422;PS=121
C. CS=242;PS=121
D. CS=242;PS=211

10. The quantity supplied of a good or service is the amount that

A. is actually bought during a given time period at a given price.
B. producers wish they could sell at a higher price.
C. producers plan to sell during a given time period at a given price.
D. people are willing to buy during a given time period at a given price.
11. Good and good are substitutes in production. The demand
for good increases so that the price of good rises. The inerease in
the price of good shifts the
A. demand curve for good rightward.
B. demand curve for good leftward.
C. supply curve of good rightward.
D. supply curve of good leftward.
12. A fall in the price of cabbage from to per bushel increases
the quantity demanded from 18,800 to 21,200 bushels. The price
elasticity of demand is
A. 1.20.
B. 0.80.
C. 8.00.
D. 1.25.

13. If the price of the Walkman is below the equilibrium price,

there will be a the price will
A. surplus; fall
B. shortage; rise
C. shortage; fall
D. surplus; rise
14. An indifference curve shows
A. affordable combinations of goods.
B. the relative price of one good relative to another.
C. consumption possibilities that a consumer faces at different prices and
income.
D. different combinations of two goods among which the consumer is
indifferent.
 15. When price of the fixed input increases
A. Average variable cost curve shifts up
B. Average total cost curve shifts down
C. Average total cost curve shifts up
D. Marginal cost curve shifts up
16. A perfectly competitive firm has average variable cost
function as follow AVC=Q+1. The firm's supply function is:
A. P=2Q+1
C. P=Q+2
B. P=Q+1
D. P=2Q+2

17 . A competitive firm wants to maximize profit must

A. Maximize total revenue
B. Maximize unit profit
C. Minimize total cost
D. None of the above
18. Monopolist does not set highest price for its product because
A. Monopolist will not have maximum profit
B. Monopolist wants to maximize total revenue
C. Monopolist wants to maximize consumer's welfare
D. Cost of production is very low
19. When marginal revenue is negative:
A. Price is negative
B. Firm to shut down
C. Firm to increase output
D. Demand is inelastic at that output
20. Kevin quit his a year corporate lawyer job to open up his own law
practice. In Kevin's firs year in business his total revenue equaled .
Kevin's explicit cost during the year totaled Using the information from
Kevin's first year in business, what is his economic profit?
A. $5
C. $65,000
B. $20,000
D. $85,000

SECTION B:

SECTION 3: