Bremen School District 228 Social Studies Common Assessment 2: Midterm

Size: px
Start display at page:

Download "Bremen School District 228 Social Studies Common Assessment 2: Midterm"

Transcription

1 Bremen School District 228 Social Studies Common Assessment 2: Midterm AP Microeconomics 55 Minutes 60 Questions Directions: Each of the questions or incomplete statements in this exam is followed by five suggested answers or completions. Select the one that is best in each case and then fill in the corresponding oval on the answer sheet. Written: Spring

2 1. Most of the choices that people make are not all-or-nothing choices. As a result, economists generally employ A. graphical analysis B. average cost curves C. marginal analysis D. financial analysis E. laboratory analysis 2. The most probable reason that Sam drinks two cups of coffee at breakfast instead of four is that A. The marginal utility of the coffee eventually diminishes B. Most people can t afford four cups of coffee C. The total utility of coffee increases as one consumes more D. The price of coffee increases as one buys more E. The marginal satisfaction derived from cups of coffee remains constant 3. Unemployment and/or an inefficient allocation of resources A. Causes the production possibilities curve to shift outward B. Causes the production possibilities curve to shift inward C. Can be illustrated by any point on a production possibilities curve D. Can be illustrated by a point outside the production possibilities curve E. Can be illustrated by a point inside the production possibilities curve Use the following table to answer questions 4 and 5 Production Possibilities (per day) For Two Countries, Alpha and Beta Boats Barrels Alpha Beta According to the table, which of the following is true? A. Alpha has an absolute advantage in producing both goods and a comparative advantage in producing barrels B. Beta has an absolute advantage in producing both goods and a comparative advantage in producing boats C. Neither country has an absolute advantage in production D. Alpha has an absolute advantage in producing both goods and a comparative advantage in producing boats E. There can be no gains from trade between two countries 2

3 5. What is Beta s opportunity cost per boat? A. 40 barrels B. 100 boats C. 0.4 barrels D. 2.5 barrels E. 4,000 barrels Use this production possibilities curve for capital goods to answer questions 6 and 7 Consumption goods 6. If chosen today, which point would provide greater economic growth in the future? A. Point A B. Point B C. Point C D. Point D E. Point E 7. Which point represents an economy in which there is unemployment? A. Point A B. Point B C. Point C D. Point D E. Point E 3

4 8. If, for each additional unit of a variable input, the increases in output becomes smaller, which of the following correctly identifies the concept? A. Diminishing marginal productivity B. Diminishing marginal utility C. Increasing marginal utility D. Increasing marginal productivity E. Constant costs 9. If, as the price of a particular good increases, the added satisfaction of each additional unit of this good for the consumer decreases, which of the following correctly identifies the concept? A. Diminishing marginal productivity B. Diminishing marginal utility C. Increasing marginal utility D. Increasing marginal productivity E. Constant costs 10. Which of the following statements is correct? A. Economic Profits= Accounting Profits B. Economic costs= Explicit Costs plus Implicit Costs C. Economic costs= Explicit Costs minus Implicit Costs D. Opportunity costs= Economic Profits E. Accounting costs= Implicit Costs 11. In the design of a competitive market system, which of the following does NOT describe how resources are allocated? A. Price signals that guide procedures on what, when, how, and for whom to produce goods and services B. Active government ownership and direction of production C. Voluntary market exchange between buyers and sellers D. Distribution of income and goods on the basis of contribution of productivity E. Profit motivation 12. Which of the following explains why a production possibilities curve is concaved (bowed out) A. Law of demand B. Law of supply C. Constant returns to scale D. Decreasing opportunity costs E. Increasing opportunity costs 4

5 13. Ray and Dorothy can both cook and pull weeds in the garden on a Sunday afternoon. For every hour cooking, Ray can pull 50 weeds and Dorothy can pull 100. Based on the information. A. Ray pulls weeds since he has an absolute advantage B. Dorothy pulls weeds since she has an absolute advantage in cooking C. Dorothy cooks since she has comparative advantage in cooking D. Ray cooks since he has a comparative advantage in cooking E. Dorothy pulls weeds since she has comparative advantage in cooking. 14. Suppose that the number of law school graduates continues to increase. In that case, lawyers' salaries A. must fall B. must increase C. will fall only if demand increases D. will fall only if demand increases more than supply increases E. will fall only if demand increases less than supply increases 15. Cheese increases in price from $2 to $4 per pound, and this change leads to a decrease in the quantity demanded from 120 to 80 pounds. Demand for cheese is therefore A. elastic B. inelastic C. unitary D. zero E. inferior 5

6 Question 16 is based on the figure below: 16. Which of the following will happen when a new computerized system for a firm increases the marginal productivity of its workers? A. The marginal revenue product curve will shift to the left, which will cause the wage rate to decrease. B. The supply curve will shift to the right, causing the wage rate to decrease. C. The marginal revenue product curve will shift to the right, causing the wage rate to increase. D. The supply curve will shift to the left, causing the wage rate to increase. E. The marginal revenue product curve will shift to the right and the supply curve will shift to the left, leaving the wage rate unchanged. 17. Which of the following is true about a price floor? A. It is used to correct government policy. B. It is used when the equilibrium price is too high. C. It will be located above the equilibrium price. D. It will be located below the equilibrium price E. It occurs when the stock market is too low 6

7 18. Which of the following is true about a price ceiling? A. It is used to correct government policy. B. It is used when equilibrium prices are too low. C. It will be located above the equilibrium price. D. It will be located below the equilibrium price. E. It is when the stock market has closed at a new high. 19. Which of the following situations best exemplifies the concept of consumer surplus? A. It refers to a consumer who no longer has any outstanding debts. B. The federal government has taken in more revenue than it has paid out in expenditures. C. A consumer pays more for a pizza than she thought it was worth at the margin of the purchase. D A consumer pays less for a pizza than she thought it was worth at the margin of the purchase. E A consumer pays exactly what she thinks the pizza is worth at the margin of the purchase TABLE 1 Number of Pair Sets Produced per Workers Two Weeks Given the data in the table above, and knowing that workers are paid $1,250 every two weeks and that the pair sets are sold to retailers at $50, how many workers would be hired? A. Two B. Three C. Four D. Five E. Six 7

8 21. If regulation of a natural monopoly occurs where marginal cost intersects the demand curve, which of the following is correct? A. The firm would be taxed. B. The firm would realize profits. C. The firm would be subsidized. D. The price of the firm would be equal to marginal revenue. E. The firm would produce less than an unregulated natural monopoly. 22. At a market price of $19, how many batteries will the firm produce? A. 20,000 B. 29,000 C. 36,000 D. 28,000 E. Zero 8

9 23. If the government announces that the drinking of red grape juice reduces the risk of heart attacks, which of the following will be correct in terms of changes in quantity demanded, demand, and the price of red grape juice? Quantity demanded Demand Price of grape juice (A) (B) (C) (D) Increases No change No change Decreases Decreases No change Increases Increases Increases Decreases Increases Decreases (E) Decreases Decreases Decreases Questions are based on the figure below: Market for Coffee Price($) Lbs. of Coffee (000) Q 24. Using the figure above, which of the following is correct for the market for coffee? A. If both the demand for and the supply of coffee increase, both the price of coffee and the quantity sold of coffee will increase. B. If both the demand for and the supply of coffee increase, the quantity of coffee sold will increase. C. If the demand for coffee decreases while the supply of coffee increases, the price of coffee will increase. D. If both the demand for and the supply of coffee decrease, both the price of coffee and the quantity sold of coffee decrease. E. If the demand for coffee increases, and the supply of coffee increases, the price of coffee will increase. 9

10 25. If the government provides a subsidy to the producers of coffee, which of the following will occur? A. A shift to the left of the supply curve. B. A shift to the left of the demand curve. C. A move along the supply curve to the right. D. A shift to the right of the demand curve. E. A shift to the right of the supply curve. 26. If the producers of coffee have to pay an increase in wages and fringe benefits to their workers, which of the following is correct? A. A shift to the left of the supply curve B. A shift to the left of the demand curve C. A move along the supply curve to the right D. A shift to the right of the demand curve E. A shift to the right of the supply curve 27. If the price of coffee increases, which of the following is most likely to happen? A. An increase in the amount of coffee consumers want to purchase. B. No change in the amount of coffee consumers want to purchase. C. A decrease in the amount of coffee consumers want to purchase. D. An increase (shift) in the demand for coffee. E. A decrease (shift) in the demand for coffee. 28. Which of the following best exemplifies economies of scale? A. As a firm's output decreases, average costs for production decrease. B. As a firm's output increases, average costs for production increase. C. As a firm's inputs triple, its output quadruples. D. As a firm's inputs triple, its output doubles. E. As a firm's inputs triple, its output stays constant. 29. Which of the following is correct? A. In the long run, all inputs are variable. B. In the short run, all inputs are variable. C. In the long run, supply is not able to adjust fully to changes in demand. D. In the short run, supply is able to adjust fully to changes in demand. E. A short run is any distance less than one mile. 10

11 30. If a firm decreases its prices by 15 percent and its total revenue increases by 30 percent, which of the following is correct? A. The price elasticity of demand is unit elastic. B. The price elasticity of demand is inelastic. C. The price elasticity of demand is elastic. D. The numerical coefficient of elasticity is equal to one. E. The numerical coefficient of elasticity is less than one. 31. If City B's planners expect that an increase in bus fares will raise mass transit revenues, they must think that the demand for bus travel is A. elastic B. unit elastic C. inelastic D. perfectly inelastic E. perfectly elastic 32. As cities thrive and per capita incomes increase, the demand for mass transit diminishes. This suggests that A. cities could raise revenue by increasing mass transit fares. B. the demand for mass transit travel is price elastic. C. automobile travel is a complement for mass transit travel. D. mass transit travel is an inferior good. E. some consumers prefer mass transit travel., 33. If Arianne claims that "price is no object" when it comes to buying handbags, then her demand curve for handbags is likely to be A. horizontal and perfectly elastic B. vertical and perfectly inelastic C. highly inelastic D. upward sloping E. unit elastic 34. Suppose Ruben truthfully tells a car salesperson that the most he is willing to pay for a new car is $15,000. The salesperson says, You re in luck; we have one on the lot for $15,000." Which of the following statements is true? A. Ruben will not buy the car. B. The car is not worth $15,000. C. Ruben gets $15,000 in consumer surplus from this deal. D. Ruben gets no consumer surplus from this deal.. E. The salesperson earns $15,000 in consumer surplus 11

12 35. Suppose Jones could increase his total utility from consuming cookies and ice cream bars by consuming one more ice cream bar and one less cookie. Which of the following is true? A. The marginal utility of cookies exceeds the marginal utility of ice cream bars. B. The marginal utility of ice cream bars exceeds the marginal utility of cookies. C. The marginal utility of cookies is negative. D. The marginal utility per dollar spent on ice cream bars exceeds that of cookies. E. Jones's total utility is at a maximum. 36. Which of the following would show that canned spaghetti is a substitute for macaroni and cheese? A. Calculating the cross-price elasticity and getting a positive number B. Calculating the income elasticity and getting a number less than 1 C. Calculating the income elasticity and getting a positive number D. Calculating the price elasticity of demand and getting a number greater than 1 E. Calculating the income elasticity and getting a negative number. 37. If the price of a good is zero, a consumer will A. consume all units that have positive total utility. B. consume an infinite amount of the good. C. consume all units with positive marginal utility. D. consume the entire amount supplied. E. consume until total utility reaches zero. 38. Consumers' real purchasing power rises as the price of a good falls, and they may demand more of that good. This behavior reflects the A. law of increasing marginal costs B. complement effect C. Income effect D. substitution effect E. law of diminishing marginal utility 12

13 Answer questions 39 and 40 using the following schedule: Quantity Demanded Quantity Supplied Price $7 0 units/day 210 units/day $6 40 units/day 170 units/day $5 80 units/day 150 units/day $4 120 units/day 120 units/day 39. According to the information in this table, the total expenditures of consumers at the market price will be which of the following? A. $240 B. $120 C. $750 D. $480 E. $ If the current price were $6, there would be a A. 30-unit shortage B. 30-unit surplus C. 60-unit shortage D. 130-unit shortage E. 130-unit surplus 41. An increase in the price of gasoline will shift the demand for hybrid cars to the A. right and reduce the market price of hybrid cars.. B. left and reduce the market price of hybrid cars. C. right and increase the market price of hybrid cars. D. left and increase the market price of hybrid cars. E. perfectly inelastic vertical position. 42. If one person has the only original signed copy of The Wealth of Nations by Adam Smith, which of the following would illustrate this situation? A. A downward sloping demand curve. B. An upward sloping supply curve. C. An invisible hand. D. A perfectly vertical supply curve. E. A perfectly horizontal demand curve. 13

14 43. Relatively free or easy entry (low or nonexistent barriers to entry) is best matched by which of the following? A. More consumer choices, greater price elasticity of demand, more competitors. B. More consumer choices, lower price elasticity of demand, more competitors. C. More consumer choices, greater price elasticity of demand, fewer competitors. D. Fewer consumer choices, lower price elasticity of demand, fewer competitors. E. Fewer consumer choices, greater price elasticity of demand, more competitors. 44. Which of the following is an assumption used when drawing a production possibilities frontier? I. Human wants and desires are limited to what is available. II. Only two goods are considered. III. The level of technology is fixed and unchanging. A. I only B. II only C. II and III D. I and III E. I, II, and III 45. "Other things remaining the same, if the price of a good rises, the quantity supplied of that good increases." This sentence describes a A. shift of a supply curve. B. shift of the price curve. C. movement along a supply curve. D. movement along the price curve. E. movement along the quantity curve. 46. Which of the following is true? A. Average total cost = total fixed costs divided by the number of units produced B. Average total cost = average variable costs divided by the number of units produced C. Average total cost = average variable costs plus marginal cost D. Average total cost = average variable cost plus average fixed cost E. All of the above 14

15 47. Which of the following is true? A. Marginal social cost = marginal private cost + marginal social benefits B. Value of externality = marginal social costs C. Value of externality = marginal private costs D. Marginal social cost= marginal private cost + negative externality E. Marginal social cost = marginal private cost + positive externality 48. Gerry is a psychologist who charges his patients $125 per hour. He leaves his office early to do some shopping for his mother s birthday, spending two hours at the mall and buying her two scarves that cost $20 each. How much did these gifts truly cost? A. $40 B. $240 C. $250 D. $290 E. $ If a retail store earns a normal profit this year this means that its A. Economic profit is equal to its accounting profit B. Economic profit is zero C. Economic profit is greater than the average accounting profit in other industries D. Accounting profit is zero E. Accounting profit is less than its economic profit 50. If company A produces 5,000 harmonicas per year at an average variable cost of $4 and an average fixed cost of $2 per harmonica, then the company s total cost is A. $20,000 B. $6,000 C. $10,000 D. $30,000 E. $5, If marginal cost is greater than average cost, then A. Average cost is constant B. Marginal cost is constant C. Average cost is rising D. Average cost is failing E. Marginal cost must be failing 15

16 52. Suppose a tractor company produces 100,000 tractors per year at its Arizona plant at an average cost of $800. It doubles its production by building an identical plant in Mississippi, which is also capable of producing at an average cost of $800. The firm has thus exhibited A. Diminishing marginal returns B. Economies of scale C. Constant returns to scale D. An upward-sloping planning curve E. Price discrimination 53. Marginal cost A. Measures the change in the AFC as more units of capital are added to production B. Is defined as the difference between total cost and total variable costs C. Rises for a time but then begins to decline when the point of diminishing returns is reached D. Declines as long as output increases E. Intersects both AVC and ATC at their minimum points Use the following cost information for the Creamy Crisp Donut Company to answer questions 54-56: Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000 Annual revenue from operations = $380,000 Payments to workers = $120,000 Utilities (electricity, water, disposal) costs = $8,000 Entrepreneur's potential economic profit from the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business = $6, Refer to the above data. Creamy Crisp's accounting profit is A. $150,000 B. $380,000 C. $230,000 D. $294,000 E. $210, Refer to the above data. Creamy Crisp's economic profit is A. $150,000 B. $80,000 C. $230,000 D. $94,000 E. $380,000 16

17 56. Refer to the above data. Creamy Crisp's total revenues exceed its total costs, including a normal profit, by: A. $150,000 B. $94,000 C. $80,000 D. $230,000 E. $380, Marginal product is A. The increase in total output attributable to the employment of one more worker B. The increase in total revenue attributable to the employment of one more worker C. The increase in total cost attributable to the employment of one more worker D. Total product divided by the number of workers employed E. The decrease in total output attributable to the employment of one more worker 58. The law of diminishing return indicates that A. As extra units of a variable resource are added to a fixed resource, marginal product will decline beyond some point. B. Because of economies and diseconomies of scale a competitive firm's long-run average total cost curve will be U-shaped C. The demand for goods produced by purely competitive industries is down sloping. D. Beyond some point the extra utility derived from additional units of a product will yield the consumer smaller and smaller extra amounts of satisfaction. E. None of the above 59. Assume that in the short run a firm is producing 100 units of output, has average total costs of $200, and average variable costs of $150. The firm's total fixed costs are? A. $50 B. $5,000 C. $550 D. $.50 E. 20, Accounting profits are typically A. Greater than economic profits because the former do not take explicit costs into account B. Equal to economic profits because accounting costs include all opportunity costs C. Smaller than economic profits because the former do not take implicit costs into account D. Greater than economic profits because the former do not take implicit costs into account E. None of the above 17

MICROECONOMICS SECTION I. Time - 70 minutes 60 Questions

MICROECONOMICS SECTION I. Time - 70 minutes 60 Questions MICROECONOMICS SECTION I Time - 70 minutes 60 Questions Directions: Each of the questions or incomplete statements below is followed by five suggested answers or completions. Select the one that is best

More information

INTI COLLEGE MALAYSIA FOUNDATION IN BUSINESS INFORMATION TECHNOLOGY (CFP) ECO105: ECONOMICS 1 FINAL EXAMINATION: JANUARY 2006 SESSION

INTI COLLEGE MALAYSIA FOUNDATION IN BUSINESS INFORMATION TECHNOLOGY (CFP) ECO105: ECONOMICS 1 FINAL EXAMINATION: JANUARY 2006 SESSION ECO105 (F) / Page 1 of 12 Section A INTI COLLEGE MALAYSIA FOUNDATION IN BUSINESS INFORMATION TECHNOLOGY (CFP) ECO105: ECONOMICS 1 FINAL EXAMINATION: JANUARY 2006 SESSION Instructions: This section consists

More information

Eco402 - Microeconomics Glossary By

Eco402 - Microeconomics Glossary By Eco402 - Microeconomics Glossary By Break-even point : the point at which price equals the minimum of average total cost. Externalities : the spillover effects of production or consumption for which no

More information

Microeconomics. Use the graph below to answer question number 3

Microeconomics. Use the graph below to answer question number 3 More Tutorial at Microeconomics 1. Opportunity costs are the values of the: a. minimal budgets of families on welfare b. hidden charges passed on to consumers c. monetary costs of goods and services *

More information

Microeconomics. Use the graph below to answer question number 3

Microeconomics. Use the graph below to answer question number 3 More Tutorial at Microeconomics 1. Opportunity costs are the values of the: a. minimal budgets of families on welfare b. hidden charges passed on to consumers c. monetary costs of goods and services *

More information

Eco 202 Exam 2 Spring 2014

Eco 202 Exam 2 Spring 2014 Eco 202 Exam 2 Spring 2014 PLEASE ANSWER 50 OF THE FOLLOWING QUESTIONS. 1. Jon Brooks quit his job in a bicycle shop, where he earned $15,000 per year, to become a graduate student in economics. At the

More information

AP Microeconomics Review With Answers

AP Microeconomics Review With Answers AP Microeconomics Review With Answers 1. Firm in Perfect Competition (Long-Run Equilibrium) 2. Monopoly Industry with comparison of price & output of a Perfectly Competitive Industry (which means show

More information

I enjoy teaching this class. Good luck and have a nice Holiday!!

I enjoy teaching this class. Good luck and have a nice Holiday!! ECON 202-501 Fall 2008 Xiaoyong Cao Final Exam Form A Instructions: The exam consists of 2 parts. Part I has 35 multiple choice problems. You need to fill the answers in the table given in Part II of the

More information

CLEP Microeconomics Practice Test

CLEP Microeconomics Practice Test Practice Test Time 90 Minutes 80 Questions For each of the questions below, choose the best answer from the choices given. 1. In economics, the opportunity cost of an item or entity is (A) the out-of-pocket

More information

Section I (20 questions; 1 mark each)

Section I (20 questions; 1 mark each) Foundation Course in Managerial Economics Examination Marks- 100, Time 3 hours Section I (20 questions; 1 mark each) 1. Which of the following statements is not true: a. Rich countries also face problems

More information

ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION

ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION YOUR NAME Row Number ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION Prof. Bill Even November 14, 2011 FORM 4 Directions 1. Fill in your scantron with your unique-id and the form number

More information

ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION

ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION YOUR NAME Row Number ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION Prof. Bill Even November 14, 2011 FORM 2 Directions 1. Fill in your scantron with your unique-id and the form number

More information

To produce more beach balls, you must give up ever increasing quantities of ice cream cones.

To produce more beach balls, you must give up ever increasing quantities of ice cream cones. Unit 01: Basic Concepts (Macro/Micro) Scarcity The Economic Problem: Unlimited wants, limited economic resources Factors of Production: -Land -Labor -Capital -Entrepreneurship Big 3 Questions: -What to

More information

Economics 323 Microeconomic Theory Fall 2016

Economics 323 Microeconomic Theory Fall 2016 pink=a FIRST EXAM Chapter Two Economics 33 Microeconomic Theory Fall 06. The process whereby price directs existing supplies of a product to the users who value it the most is called the function of price.

More information

Economics 323 Microeconomic Theory Fall 2016

Economics 323 Microeconomic Theory Fall 2016 peach=b FIRST EXAM Chapter Two Economics 33 Microeconomic Theory Fall 06. The process whereby price directs existing supplies of a product to the users who value it the most is called the function of price.

More information

Submit your scantron and questions sheet

Submit your scantron and questions sheet PRINT YOUR NAME Exam 1 Submit your scantron and questions sheet Version A 1. Scarcity means that A) what we can produce with our resources is greater than our material wants B) resources are unlimited

More information

BUSINESS ECONOMICS (PAPER IV-PART I)

BUSINESS ECONOMICS (PAPER IV-PART I) BUSINESS ECONOMICS (PAPER IV-PART I) (60 MARKS) Q1: Macroeconomics is also called economics (a) applied (b) aggregate (c) experimental (d) none Q2: A Study of how increase in the corporate income tax rate

More information

MICRO EXAM REVIEW SHEET

MICRO EXAM REVIEW SHEET MICRO EXAM REVIEW SHEET 1. Firm in Perfect Competition (Long-Run Equilibrium) 2. Monopoly Industry with comparison of price & output of a Perfectly Competitive Industry 3. Natural Monopoly with Fair-Return

More information

Microeconomics. Use the Following Graph to Answer Question 3

Microeconomics. Use the Following Graph to Answer Question 3 More Tutorial at www.dumblittledoctor.com Microeconomics 1. To an economist, a good is scarce when: *a. the amount of the good available is less than the amount that people want when the good's price equals

More information

2000 AP Microeconomics Exam Answers

2000 AP Microeconomics Exam Answers 2000 AP Microeconomics Exam Answers 1. B Scarcity is the main economic problem!!! 2. D If the wages of farm workers and movie theater employee increase, the supply of popcorn and movies will decrease (shift

More information

a) I, II and III. b) I c) II and III only. d) I and III only. 2. Refer to the PPF diagram below. PPF

a) I, II and III. b) I c) II and III only. d) I and III only. 2. Refer to the PPF diagram below. PPF 1. Suppose that - at a given level of an economic activity - marginal social cost is greater than marginal social benefit. Which of the following statements is TRUE? I. Social surplus would be higher at

More information

Economics 323 Microeconomic Theory Fall 2015

Economics 323 Microeconomic Theory Fall 2015 pink=a FIRST EXAM Chapter Two Economics 323 Microeconomic Theory Fall 2015 1. The equilibrium price in a market is the price where a. supply equals demand b. no surpluses or shortages result c. no pressures

More information

ECO402_Final_Term_Solved_Quizzes By

ECO402_Final_Term_Solved_Quizzes By ECO402_Final_Term_Solved_Quizzes By http://www.vustudents.net 1. The "perfect information" assumption of perfect competition includes all of the following except one. Which one? Consumers know their preferences.

More information

NB: STUDENTS ARE REQUESTED IN THEIR OWN INTEREST TO WRITE LEGIBLY AND IN INK.

NB: STUDENTS ARE REQUESTED IN THEIR OWN INTEREST TO WRITE LEGIBLY AND IN INK. 1 INFORMATION & INSTRUCTIONS: DURATION: THREE (3) HOURS TOTAL MARKS: 300 INTERNAL EXAMINER : PROFESSOR D. MAHADEA EXTERNAL EXAMINER: MR R. SIMSON NB: STUDENTS ARE REQUESTED IN THEIR OWN INTEREST TO WRITE

More information

Microeconomics. More Tutorial at

Microeconomics.  More Tutorial at Microeconomics 1. Suppose a firm in a perfectly competitive market produces and sells 8 units of output and has a marginal revenue of $8.00. What would be the firm s total revenue if it instead produced

More information

Multiple Choice Part II, Q1 Part II, Q2 Part III Total

Multiple Choice Part II, Q1 Part II, Q2 Part III Total SIMON FRASER UNIVERSITY ECON 103 (2008-2) MIDTERM EXAM NAME Student # Tutorial # Multiple Choice Part II, Q1 Part II, Q2 Part III Total PART I. MULTIPLE CHOICE (56%, 1.5 points each). Answer on the bubble

More information

ECON 251 DISTANCE LEARNING: MAY 2014 MIDTERM EXAM INSTRUCTIONS

ECON 251 DISTANCE LEARNING: MAY 2014 MIDTERM EXAM INSTRUCTIONS ECON 251 DISTANCE LEARNING: MAY 2014 MIDTERM EXAM Student s Name: Proctor s Name: Date: To the student: INSTRUCTIONS You have a maximum of 2 hours to complete the exam The exam is closed notes & book.

More information

Macro Unit 1b. This is what we call a demand schedule. It is a table that shows how much consumers are willing and able to purchase at various prices.

Macro Unit 1b. This is what we call a demand schedule. It is a table that shows how much consumers are willing and able to purchase at various prices. Macro Unit 1b Demand Market: an institution or mechanism, which brings together buyers ("demanders") and sellers ("suppliers") of particular goods and services. Notice that the remainder of this unit assumes

More information

2003/2004 SECOND EXAM 103BE/BX/BF Microeconomics, Closed part

2003/2004 SECOND EXAM 103BE/BX/BF Microeconomics, Closed part 1 2003/2004 SECOND EXAM 103BE/BX/BF Microeconomics, Closed part Note 1: Always read all the options before choosing one, and then select the best option. Sometimes the final option may read like all the

More information

Section I (20 questions; 1 mark each)

Section I (20 questions; 1 mark each) Foundation Course in Managerial Economics- Solution Set- 1 Final Examination Marks- 100 Section I (20 questions; 1 mark each) 1. Which of the following statements is not true? a. Societies face an important

More information

Midterm 2 - Solutions

Midterm 2 - Solutions Ecn 100 - Intermediate Microeconomic Theory University of California - Davis November 13, 2009 Instructor: John Parman Midterm 2 - Solutions You have until 11:50am to complete this exam. Be certain to

More information

ECON 1001 A. Come to the PASS workshop with your mock exam complete. During the workshop you can work with other students to review your work.

ECON 1001 A. Come to the PASS workshop with your mock exam complete. During the workshop you can work with other students to review your work. It is most beneficial to you to write this mock midterm UNDER EXAM CONDITIONS. This means: Complete the midterm in 1.5 hour(s). Work on your own. Keep your notes and textbook closed. Attempt every question.

More information

Exam 3 Practice Questions

Exam 3 Practice Questions Exam 3 Practice Questions 1. The price elasticity of demand is a measure of: a) how quickly a particular market reaches equilibrium. b) the change in supply associated with lower prices. c) the percent

More information

1 of 14 5/1/2014 4:56 PM

1 of 14 5/1/2014 4:56 PM 1 of 14 5/1/2014 4:56 PM Any point on the budget constraint Gives the consumer the highest level of utility. Represent a combination of two goods that are affordable. Represents combinations of two goods

More information

ECON 120 SAMPLE QUESTIONS

ECON 120 SAMPLE QUESTIONS ECON 120 SAMPLE QUESTIONS 1) The price of cotton clothing falls. As a result, 1) A) the demand for cotton clothing decreases. B) the quantity demanded of cotton clothing increases. C) the demand for cotton

More information

Microeconomics Exam Notes

Microeconomics Exam Notes Microeconomics Exam Notes Opportunity Cost What you give up to get it Production Possibility Frontier Maximum attainable combination of two products (Concept of Opportunity Cost). Main Decision Makers:

More information

Microeconomics: MIE1102

Microeconomics: MIE1102 TEXT CHAPTERS TOPICS 1, 2 ECONOMICS, ECONOMIC SYSTEMS, MARKET ECONOMY 3 DEMAND AND SUPPLY. MARKET EQUILIBRIUM 4 ELASTICITY OF DEMAND AND SUPPLY 5 DEMAND & CONSUMER BEHAVIOR 6 PRODUCTION FUNCTION 7 COSTS

More information

ECO402 Final Term Solved Quizzes Dear all Friends, I am not responsible for any incorrect answer so you have to check it by your own.

ECO402 Final Term Solved Quizzes Dear all Friends, I am not responsible for any incorrect answer so you have to check it by your own. ECO402 Final Term Solved Quizzes Dear all Friends, I am not responsible for any incorrect answer so you have to check it by your own. 1. The "perfect information" assumption of perfect competition includes

More information

YOUR NAME (please print) Form 1. Directions

YOUR NAME (please print) Form 1. Directions Assigned Seat YOUR NAME (please print) Form 1 Directions 1. There are 49 multiple choice questions. All answers should be recorded on both your exam and the scantron. Be sure to fill in your unique id

More information

SHORT QUESTIONS AND ANSWERS FOR ECO402

SHORT QUESTIONS AND ANSWERS FOR ECO402 SHORT QUESTIONS AND ANSWERS FOR ECO402 Question: How does opportunity cost relate to problem of scarcity? Answer: The problem of scarcity exists because of limited production. Thus, each society must make

More information

ECON 101 KONG Midterm 2 CMP Review Session. Presented by Benji Huang

ECON 101 KONG Midterm 2 CMP Review Session. Presented by Benji Huang ECON 101 KONG Midterm 2 CMP Review Session Presented by Benji Huang Chapter 5 Efficiency and Equity Benefit, Cost, Surplus Consumers (1) A consumer benefits from the consumption of a product this benefit

More information

Extra Credit. Student:

Extra Credit. Student: Extra Credit Student: 1. A glass company making windows for houses also makes windows for other things (cars, boats, planes, etc.). We would expect its supply curve for house windows to be: A. Dependent

More information

Economics : Principles of Microeconomics Spring 2014 Instructor: Robert Munk April 24, Final Exam

Economics : Principles of Microeconomics Spring 2014 Instructor: Robert Munk April 24, Final Exam Economics 001.01: Principles of Microeconomics Spring 01 Instructor: Robert Munk April, 01 Final Exam Exam Guidelines: The exam consists of 5 multiple choice questions. The exam is closed book and closed

More information

Answer all the following questions:-

Answer all the following questions:- Answer all the following questions:- QUESTION ONE / TRUE ( ) OR FALSE (X) / (10 MARKS) 1. Total revenue = price x sold quantity. 2. The purpose of a production function is to tell us just how much output

More information

Midterm 2 Sample Questions. Use the demand curve diagram below to answer the following THREE questions.

Midterm 2 Sample Questions. Use the demand curve diagram below to answer the following THREE questions. ! Midterm 2 Sample uestions Use the demand curve diagram below to answer the following THREE questions. 8 6 4 2 4 8 12 16 1. What is the own-price elasticity of demand as price decreases from 6 per unit

More information

Refer to the given data. At the profit-maximizing level of employment, this firm's total labor cost will be: A. $16. B. $30. C. $24. D. $32.

Refer to the given data. At the profit-maximizing level of employment, this firm's total labor cost will be: A. $16. B. $30. C. $24. D. $32. 1. The more work people do, all other things unchanged, the: A) more their free time. B) greater their nonmarket use of time. C) less income they have. D) less leisure they have. 2. A wage will the leisure.

More information

Commerce 295 Midterm Answers

Commerce 295 Midterm Answers Commerce 295 Midterm Answers October 27, 2010 PART I MULTIPLE CHOICE QUESTIONS Each question has one correct response. Please circle the letter in front of the correct response for each question. There

More information

IB Economics Microeconomics Review Mr. Dachpian

IB Economics Microeconomics Review Mr. Dachpian IB Economics Microeconomics Review Microeconomics Review AP Microeconomics Chapter 1: Limits, Alternatives, & Choices IB Economics Chapter 2: The Market System and the Circular Flow Market Economies and

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following statements is correct? A) Consumers have the ability to buy everything

More information

FINAL - ECONOMICS 2023 AUGUST 4, Name S.S.#

FINAL - ECONOMICS 2023 AUGUST 4, Name S.S.# FINAL - ECONOMICS 2023 AUGUST 4, 2000 Name S.S.# This exam contains 30 multiple choice questions, each worth 2.5 points (100 point total). All questions on this exam should be answered. You have 75 minutes

More information

ECO401 Current Online 85 Quizzes Question Repeated ignore In Green color are doubted one

ECO401 Current Online 85 Quizzes Question Repeated ignore In Green color are doubted one ECO401 Current Online 85 Quizzes Question Repeated ignore In Green color are doubted one Question # 1 of 15 ( Start time: 01:24:42 PM ) Total Marks: 1 A person with a diminishing marginal utility of income:

More information

Economic Analysis for Business Decisions Multiple Choice Questions Unit-2: Demand Analysis

Economic Analysis for Business Decisions Multiple Choice Questions Unit-2: Demand Analysis Economic Analysis for Business Decisions Multiple Choice Questions Unit-2: Demand Analysis 1. The law of demand states that an increase in the price of a good: a. Increases the supply of that good. b.

More information

Micro Semester Review Name:

Micro Semester Review Name: Micro Semester Review Name: The following review is set up to emphasize certain concepts, graphs and terms. It is the responsibility of the individual teachers to emphasize and review the analysis aspects

More information

INTI COLLEGE MALAYSIA UNIVERSITY FOUNDATION PROGRAMME ECO 185 : BASIC ECONOMICS 1 RESIT EXAMINATION : APRIL 2003 SESSION

INTI COLLEGE MALAYSIA UNIVERSITY FOUNDATION PROGRAMME ECO 185 : BASIC ECONOMICS 1 RESIT EXAMINATION : APRIL 2003 SESSION ECO 185 (R) / Page 1 of 10 INTI COLLEGE MALAYSIA UNIVERSITY FOUNDATION PROGRAMME ECO 185 : BASIC ECONOMICS 1 RESIT EXAMINATION : APRIL 2003 SESSION Answer ALL questions in SECTION A in the OMR sheet provided

More information

CONTENTS. Introduction to the Series. 1 Introduction to Economics 5 2 Competitive Markets, Demand and Supply Elasticities 37

CONTENTS. Introduction to the Series. 1 Introduction to Economics 5 2 Competitive Markets, Demand and Supply Elasticities 37 CONTENTS Introduction to the Series iv 1 Introduction to Economics 5 2 Competitive Markets, Demand and Supply 17 3 Elasticities 37 4 Government Intervention in Markets 44 5 Market Failure 53 6 Costs of

More information

Ecn Intermediate Microeconomic Theory University of California - Davis September 9, 2009 Instructor: John Parman. Final Exam

Ecn Intermediate Microeconomic Theory University of California - Davis September 9, 2009 Instructor: John Parman. Final Exam Ecn 100 - Intermediate Microeconomic Theory University of California - Davis September 9, 2009 Instructor: John Parman Final Exam You have until 1:50pm to complete this exam. Be certain to put your name,

More information

Economics E201 (Professor Self) Sample Questions for Exam Two, Fall 2013

Economics E201 (Professor Self) Sample Questions for Exam Two, Fall 2013 , Fall 2013 Your exam will have two parts covering the topics in chapters 4 (page 91 through end of chapter), 5 and 6 from the Parkin chapters and chapter 10 (up to page 317, up to but not including the

More information

GACE Economics Assessment Test I (038) Curriculum Crosswalk

GACE Economics Assessment Test I (038) Curriculum Crosswalk Subarea I. Fundamental Economic Concepts (20%) Objective 1: Demonstrates an understanding of the fundamental concepts of economics A. Understands the concepts of scarcity, choice, and opportunity cost

More information

Question # 1 of 15 ( Start time: 01:24:42 PM ) Total Marks: 1 A person with a diminishing marginal utility of income: Will be risk averse. Will be risk neutral. Will be risk loving. Cannot decide without

More information

Microeconomics. More Tutorial at

Microeconomics.   More Tutorial at Microeconomics 1. Economists assume that the goal of the firm is to maximize A. total revenue B. total profit C. total costs D. total satisfaction 2. If a perfectly competitive firm produces 100 units

More information

Principles of Economics Final Exam. Name: Student ID:

Principles of Economics Final Exam. Name: Student ID: Principles of Economics Final Exam Name: Student ID: 1. In the absence of externalities, the "invisible hand" leads a competitive market to maximize (a) producer profit from that market. (b) total benefit

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Sample Test 3 Ch 10-13 Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A cost incurred in the production of a good or service and for which

More information

2. What is Taylor s marginal utility per dollar spent on the 2 nd race? a. 2 b. 3 c. 4 d. 5

2. What is Taylor s marginal utility per dollar spent on the 2 nd race? a. 2 b. 3 c. 4 d. 5 ECON 251 Practice questions based on Spring 2013 Exam 2 Taylor has $100 to spend on playing golf and running in races. The price of a round of golf is $20 and the price of running a race is $10. The total

More information

Figure 4 1 Price Quantity Quantity Per Pair Demanded Supplied $ $ $ $ $10 2 8

Figure 4 1 Price Quantity Quantity Per Pair Demanded Supplied $ $ $ $ $10 2 8 Econ 101 Summer 2005 In class Assignment 2 Please select the correct answer from the ones given Figure 4 1 Price Quantity Quantity Per Pair Demanded Supplied $ 2 18 3 $ 4 14 4 $ 6 10 5 $ 8 6 6 $10 2 8

More information

Midterm Solved Papers

Midterm Solved Papers ECO 402 Midterm Solved Papers Microeconomics 1. Which of the following will cause the demand curve for butter to shift to the left? An increase in the price of the butter. A decrease in consumers incomes.

More information

Multiple Choice Part II, A Part II, B Part III Total

Multiple Choice Part II, A Part II, B Part III Total SIMON FRASER UNIVERSITY ECON 103 (2007-2) MIDTERM EXAM NAME Student # Tutorial # Multiple Choice Part II, A Part II, B Part III Total PART I. MULTIPLE CHOICE (56%, 1.75 points each). Answer on the bubble

More information

This exam contains 15 pages (including this cover page) and 17 questions. Check to see if any pages are missing.

This exam contains 15 pages (including this cover page) and 17 questions. Check to see if any pages are missing. ECON 001 Fall 2016 Final Exam December 21, 2016 Time Limit: 120 Minutes Name (Print): Recitation Section: Name of TA: This exam contains 15 pages (including this cover page) and 17 questions. Check to

More information

Economics MCQ (1-50) GAT Subject Management Sciences.

Economics MCQ (1-50) GAT Subject Management Sciences. Economics MCQ (1-50) GAT Subject Management Sciences www.accountancyknowledge.com 51. If a 5% increase in price causes no change in total revenue, this means? (a) Demand is price inelastic (b) Demand is

More information

Exam 01 - ECON Friday, October 1st

Exam 01 - ECON Friday, October 1st Name: Exam 01 - ECON 2301-05 - Friday, October 1st Figure 1 1. Refer to Figure 1. This economy has the ability to produce at which point(s)? a. A, B, D b. A, B c. C, F, G d. A, B, C, F, G 2. Any point

More information

Multiple Choice questions /60 Problem 1 /20 Problem 2 /12 Problem 3 /8

Multiple Choice questions /60 Problem 1 /20 Problem 2 /12 Problem 3 /8 Econ 200 Midterm 1 Spring 2011 March 29 2011 Instructions : 1-) The exam is 65 minutes 2-) You have to provide detailed solution to each problem 3-) Any form of cheating (Peeking to other s exam, use your

More information

Eastern Mediterranean University Faculty of Business and Economics Department of Economics Spring Semester

Eastern Mediterranean University Faculty of Business and Economics Department of Economics Spring Semester Eastern Mediterranean University Faculty of Business and Economics Department of Economics 2015 16 Spring Semester ECON101 Introduction to Economics I First Midterm Exam Duration: 90 minutes Answer Key

More information

Exam 01 - ECON Friday, October 1st

Exam 01 - ECON Friday, October 1st Name: ID: A Exam 01 - ECON 2301-05 - Friday, October 1st 1. Demand is said to be inelastic if the a. quantity demanded changes proportionately the same as price. b. quantity demanded changes proportionately

More information

1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price

1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price 1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price 2. The two things needed for demand to exist are: willingness

More information

JANUARY EXAMINATIONS 2005

JANUARY EXAMINATIONS 2005 No. of Pages: (A) 7 No. of Questions: 26 EC1000A ' JANUARY EXAMINATIONS 2005 Subject Title of Paper ECONOMICS EC1000 MICROECONOMICS Time Allowed Two Hours (2 Hours) Instructions to candidates This paper

More information

Econ103_Midterm (Fall 2016)

Econ103_Midterm (Fall 2016) Econ103_Midterm (Fall 2016) Total 50 Points. Multiple Choice Identify the choice that best completes the statement or answers the question. 1 point for each question. Total 15 pts. c 1. Which of the following

More information

University of Toronto October 17, ECO 100Y INTRODUCTION TO ECONOMICS Midterm Test # 1

University of Toronto October 17, ECO 100Y INTRODUCTION TO ECONOMICS Midterm Test # 1 Department of Economics Prof. Gustavo Indart University of Toronto October 17, 2008 SOLUTIONS ECO 100Y INTRODUCTION TO ECONOMICS Midterm Test # 1 LAST NAME FIRST NAME STUDENT NUMBER INSTRUCTIONS: 1. The

More information

Eastern Mediterranean University Faculty of Business and Economics Department of Economics Fall Semester

Eastern Mediterranean University Faculty of Business and Economics Department of Economics Fall Semester Eastern Mediterranean University Faculty of Business and Economics Department of Economics 2016-17 Fall Semester Duration: 110 minutes ECON101 - Introduction to Economics I Final Exam Type A 11 January

More information

THE UNIVERSITY OF WESTERN ONTARIO. E. Rivers ECONOMICS 1021B-001 March 18, 2012 MIDTERM #2. 2. Check that your examination contains 50 questions.

THE UNIVERSITY OF WESTERN ONTARIO. E. Rivers ECONOMICS 1021B-001 March 18, 2012 MIDTERM #2. 2. Check that your examination contains 50 questions. NAME THE UNIVERSITY OF WESTERN ONTARIO LONDON CANADA E. Rivers ECONOMICS 1021B-001 March 18, 2012 MIDTERM #2 INSTRUCTIONS: 1. You will have 2 hours to complete the exam. 2. Check that your examination

More information

Postgraduate Diploma in Marketing December 2017 Examination Economic and Legal Impact (Econ)

Postgraduate Diploma in Marketing December 2017 Examination Economic and Legal Impact (Econ) Postgraduate Diploma in Marketing December 2017 Examination Economic and Legal Impact (Econ) Date: 20 December 2017 Time: 0830 Hrs 1130 Hrs Duration: Three (03) Hrs ) Total marks for this paper is 100

More information

ECON 2100 (Summer 2014 Sections 08 & 09) Exam #3D

ECON 2100 (Summer 2014 Sections 08 & 09) Exam #3D ECON 21 (Summer 214 Sections 8 & 9) Exam #3D Multiple Choice Questions: (3 points each) 1. I am taking of the exam. D. Version D 2. If a firm is currently operating at a point where costs of production

More information

Multiple Choice Identify the letter of the choice that best completes the statement or answers the question.

Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. Final day 2 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. What determines how a change in prices will affect total revenue for a company?

More information

Chapter Summary and Learning Objectives

Chapter Summary and Learning Objectives CHAPTER 11 Firms in Perfectly Competitive Markets Chapter Summary and Learning Objectives 11.1 Perfectly Competitive Markets (pages 369 371) Explain what a perfectly competitive market is and why a perfect

More information

Chapter 10 Pure Monopoly

Chapter 10 Pure Monopoly Chapter 10 Pure Monopoly Multiple Choice Questions 1. Pure monopoly means: A. any market in which the demand curve to the firm is downsloping. B. a standardized product being produced by many firms. C.

More information

Preview from Notesale.co.uk Page 6 of 89

Preview from Notesale.co.uk Page 6 of 89 Guns Butter 200 0 175 75 130 125 70 150 0 160 What it shows: the maximum combinations of two goods an economy can produce with its existing resources and technology; an economy can produce at points on

More information

ECON 251 Exam 2 Pink. Fall 2012

ECON 251 Exam 2 Pink. Fall 2012 ECON 251 Exam 2 Pink Use the table below to answer the following four questions The table below shows Harry s total utility from consuming beer and wine. The price of beer is $2 per bottle. The price of

More information

DO NOT OPEN THIS BOOKLET OR TURN IT OVER [until told to do so]

DO NOT OPEN THIS BOOKLET OR TURN IT OVER [until told to do so] (last, first): ON YOUR QUESTION BOOKLET: ON YOUR SCANTRON: 5 points DURING THE EXAM: MUST DO NOT OPEN THIS BOOKLET OR TURN IT OVER [until told to do so] p. 1 v. 09 Figure SSD. The graph below describes

More information

Ecn Intermediate Microeconomic Theory University of California - Davis December 10, 2009 Instructor: John Parman. Final Exam

Ecn Intermediate Microeconomic Theory University of California - Davis December 10, 2009 Instructor: John Parman. Final Exam Ecn 100 - Intermediate Microeconomic Theory University of California - Davis December 10, 2009 Instructor: John Parman Final Exam You have until 12:30pm to complete this exam. Be certain to put your name,

More information

Individual & Market Demand and Supply

Individual & Market Demand and Supply Mr Sydney Armstrong ECN 1100 Introduction to Microeconomic Lecture Note (3) Individual & Market Demand and Supply The tools of demand and supply can take us a far way in understanding both specific economic

More information

Assignment 2 Due on October 25 th (in class) * Please bring your answers in a big gray scantron answer sheet

Assignment 2 Due on October 25 th (in class) * Please bring your answers in a big gray scantron answer sheet ECON 202-510 Fall 2007 Raul Ibarra-Ramirez Assignment 2 Due on October 25 th (in class) * Please bring your answers in a big gray scantron answer sheet MULTIPLE CHOICE. Choose the one alternative that

More information

This is what we call a demand schedule. It is a table that shows how much consumers are willing and able to purchase at various prices.

This is what we call a demand schedule. It is a table that shows how much consumers are willing and able to purchase at various prices. Demand Market: an institution or mechanism, which brings together buyers ("demanders") and sellers ("suppliers") of particular goods and services. The remainder of this unit assumes a perfectly competitive

More information

University of Ghana. lilj ~ IS UNIVERSITY OF GHANA. (All rights reserved) B.SC ADMINISTRATION, FIRST SEl\1ESTER EXAl\1INATION:

University of Ghana. lilj ~ IS UNIVERSITY OF GHANA. (All rights reserved) B.SC ADMINISTRATION, FIRST SEl\1ESTER EXAl\1INATION: lilj EI ~ IS UNIVERSITY OF GHANA (All rights reserved) B.SC ADMINISTRATION, FIRST SEl\1ESTER EXAl\1INATION: 201412015 UGBS 201: MICROECONOMICS AND BUSINESS (3 CREDITS) TIME ALLOWED: 2 HOURS and 30 MINUTES

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. FIGURE 1-2

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. FIGURE 1-2 Questions of this SAMPLE exam were randomly chosen and may NOT be representative of the difficulty or focus of the actual examination. The professor did NOT review these questions. MULTIPLE CHOICE. Choose

More information

Choose the single best answer for each question. Do all of your scratch-work in the side and bottom margins of pages.

Choose the single best answer for each question. Do all of your scratch-work in the side and bottom margins of pages. Econ 101, Sections 3 and 4, S11, Schroeter Exam #2, Special code = 0002 Choose the single best answer for each question. Do all of your scratch-work in the side and bottom margins of pages. 1. The cross-price

More information

Government Regulation

Government Regulation Government Regulation What do you think is the market price for renting an apartment in Plainfield? What happens to the quantity of demand and supply after the price change? List four outcomes that would

More information

Test 2. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Test 2. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Name R# ECO 2301.007 - Roach Test 2 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Air pollution generated by a steel mill is an example of 1)

More information

Ch. 9 LECTURE NOTES 9-1

Ch. 9 LECTURE NOTES 9-1 Ch. 9 LECTURE NOTES I. Four market models will be addressed in Chapters 9-11; characteristics of the models are summarized in Table 9.1. A. Pure competition entails a large number of firms, standardized

More information

ECON 251 Practice Exam 2 Questions from Fall 2013 Exams

ECON 251 Practice Exam 2 Questions from Fall 2013 Exams ECON 251 Practice Exam 2 Questions from Exams Gordon spends all his income on spatulas and mixing bowls. Spatulas cost $4 and mixing bowls cost $12. Gordon has $60 of income and considers both spatulas

More information

1 of 38 4/29/14 10:16 PM

1 of 38 4/29/14 10:16 PM 1. award: Refer to Figure 1.8. If the university decides to lower grading standards, then This curve will shift rightward. This curve will pivot up and to the left. The curve will begin to bend downward

More information

!"#$#%&"'()#*(+,'&$-''(.#/-'((

!#$#%&'()#*(+,'&$-''(.#/-'(( Lecture 1 Basic Concerns of Economics What is Economics! Economics is the study of how society manages its scarce resources. o Economic Problem: How a society can satisfy unlimited wants with limited resources

More information

Practice Exam 3: S201 Walker Fall with answers to MC

Practice Exam 3: S201 Walker Fall with answers to MC Practice Exam 3: S201 Walker Fall 2007 - with answers to MC Print Your Name: I. Multiple Choice (3 points each) 1. If marginal utility is falling then A. total utility must be falling. B. marginal utility

More information