3. Which of the following statements is correct?
(A) The uncompensated demand curve is always downward sloping.
(B) The compensated demand curve is always downward sloping.
(C) The uncompensated demand curve is downward sloping when substitution effect is greater than income effect.
(D)The compensated demand curve is downward sloping when substitution effect is greater than income effect.

4. Suppose that a firm uses labor and capital to produce q units of output. When the price of labor and the price of capital increase by the same percentage, how will the firm change its combination of labor and capital to produce the same amount of output q? (A) The firm will reduce the amount of labor and the amount of capital by the same percentage. (B) The firm will increase the amount of labor and the amount of capital by the same percentage. (C) The firm will use the same combination of labor and capital as they did before the prices change. (D)The combination of labor and capital will depend on their marginal products.

5. Longrun average cost is never greater than shortrun average cost because in the long run (A) Labor is cheaper in the long run. (B) Capital is cheaper in the long run. (C) Labor and capital are cheaper in the long run. (D)Firms can move to the lowest possible isocost line.

6. Under a competitive market, suppose that all firms are identical. For each individual firm, longrun average cost is minimized at $0.20 per unit and 500 units are produced. The market demand is Q=10,000/P and the longrun supply is horizontal. How many firms will this industry sustain in the long run? (A) 0 (B) 100. (C) 50,000. (D)There is no enough information to answer.

7. In a Cournot model of two firms selling identical products, if one firm has lower marginal cost than the other firm, then (A) the firm with lower marginal cost sells more units of output. (B) the firm with lower marginal cost earns a higher profit. (C) both firms face the same price. (D)all of the above are correct.

8. Which of the following statements is true? (A) A risklover must not buy insurance. (B) A riskaverse individual must buy insurance. (C) A riskloving individual's marginal utility of money is positive and increasing. (D)A riskaverse individual's marginal utility of money is negative and decreasing.

9. If an agent must pay the full marginal cost for a unit of output but splits the marginal revenue with the principal. As a result, (A) the agent wants to sell as many units of goods as he can. (B) joint profit is maximized (C) joint profit is not maximized. (D)the agent is not willing to work for the principal.

10. Under a pure exchange economy with two consumers and two goods, suppose that the two consumers are already on the contract curve. A further reallocation of the two goods will make (A) both consumers better off. (B) both consumers worse off. (C) at least one of them better off. (D)at least one of them worse off.

1. 下列關於柏瑞圖改善(Pareto improvement)與柏瑞圖效率(Pareto efficiency)之敘述，何者錯誤？ (A)柏瑞圖改善的存在意謂著經濟體系一定是非柏瑞圖效率的 (B)由柏瑞圖效率點移至另一柏瑞圖效率點的改變，一定不是柏瑞圖改善 (C)柏瑞圖改善一定會導致柏瑞圖效率的結果 (D)發生柏瑞圖改善時，一定不會有任何人福利受損，而在柏瑞圖效率狀態下改變時，一定會使某人福利受損

2. 福利經濟學第一基本定理說明：(A)貪替有助於福利的提昇 (B)市場均衡都是有效率的 (C)完全競爭市場均衡是有效率的 (D)完全競爭市場均衡具公平性

3. 有關租稅課徵「相等比例犧牲公平」的敘述，下列何者正確？(A)其探討租稅課徵的受益公平，且租稅必須採比例稅率 (B)其探討租稅課徵的量能公平，且租稅必須採比例稅率 (C)其探討租稅課徵的受益公平，但租稅不一定採比例稅率 (D)其探討租稅課徵的量能公平，但租稅不一定採比例稅率

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