21. As coffee becomes more expensive, Joe starts drinking tea instead of coffee. This is called:
(A) the income effect of a price change.
(B) a decrease in reservation price.
(C) the substitution effect of a price change.
(D) a decrease in demand.

17. On the Graph 1 AD-AS Shocks, an example of a positive demand shock is the movement from point ________ to point ________. (A) F； G (B) H； I (C) F； H (D) H； F

18. The theory of purchasing power parity suggests that, in the long-run, exchange rates are determined by ________. (A) relative interest rate levels (B) relative price levels (C) the GDP values for the two countries (D) the most significant monetary authorities, including the Federal Reserve, European Central Bank, Bank of England and the Bank of Japan 

19. A rise in the expected future exchange rate will tend to cause, other things the same ________. (A) a depreciation of the domestic currency (B) no effect on the value of the U.S. dollar in the short-run (C) an appreciation of the domestic currency (D) no effect on the value of the U.S. dollar

20. You can spend $10 for lunch and you would like to purchase two cheeseburgers. When you get to the restaurant, you find out the price for cheeseburger has increased from $5 to $6, so you decide to purchase just one cheeseburger. This is best described as the: (A) substitution effect of a price change. (B) income effect of a price change. (C) a decrease in the buyer's reservation price. (D) an increase in the buyer's reservation price.

22. Which of the following is NOT a characteristic of a market in equilibrium? (A) There is neither excess supply nor excess demand. (B) Neither buyers nor sellers want the price to change. (C) Sellers can sell as many units as they want at the equilibrium price. (D) Buyers can buy as many units as they want at the equilibrium price.

23. An increase in both the equilibrium price and the equilibrium quantity of DVD players is best explained by a(n): (A) increase in the demand for DVD players. (B) increase in the supply of DVD players. (C)decrease in the supply of DVD player. (D)decrease in the demand for DVD players.

24.是商品 X 與 Y 的交 叉彈性值，其值為負。如果 的絕對值愈大，則代表 X 與 Y 的 (A) 替代程度愈高。 (B) 替代程度愈低。 (C) 互補程度愈高。 (D) 互補程度愈低。

25. 如果政府課稅造成供給曲線往上移，則該稅是 (A) 對買者課的。 (B) 對賣者課的。 (C) 同時對買者與賣者課的。 (D) 無法判斷。

26. If the price elasticity of demand for pineapples is 0.75, then a 4% increase in the price of pineapples will lead to a: (A) 3% decrease in the quantity of pineapples demanded. (B) 3% increase in the quantity of pineapples demanded. (C) 0.75% decrease in the quantity of pineapples demanded. (D) 0.75% increase in the quantity of pineapples demanded.

27. Suppose a cup of tea costs $0.60 and a scone costs $1.20. If Edith spends all of her income on these two goods, and at her current level of consumption, she receives a marginal utility of 6 utils from the last cup of tea she buys and a marginal utility of 24 utils from the last scone she buys, then Edith should: (A) buy more tea and fewer scones. (B) buy less tea and more scones. (C) not change her consumption of tea and scones. (D) buy more tea and more scones.