# AGEC 105 Spring 2010 Test 2 Capps. (a) Name (b) UIN # (c) Section # (d) Sign the Aggie pledge on the back of your scantron.

Size: px
Start display at page:

Download "AGEC 105 Spring 2010 Test 2 Capps. (a) Name (b) UIN # (c) Section # (d) Sign the Aggie pledge on the back of your scantron."

Transcription

1 AGEC 105 Spring 2010 Test 2 Capps lease put the following pieces of information on your scantron: (a) Name (b) UIN # (c) Section # (d) Sign the Aggie pledge on the back of your scantron. On my honor, as an Aggie, I have neither given nor received unauthorized aid on this exam. 1

2 AGEC 105 Spring 2010 Test 2 Capps 1. Which of the following statement(s) is(are) true? (a) Stage 3 of production corresponds to M < 0. (b) AFC + AVC = ATC (c) M = A where A = maximum (d) All of the above. 2. According to the information below, which of the following is not true? Units of Variable Input (I) Units of Output () TC TVC 100 2,000 \$20,000 \$18,000 (a) AVC = \$10 (b) AFC = \$1 (c) The price of the input is \$180/unit. (d) Total fixed costs = \$2, According to this diagram, the income elasticity of demand for salmon is: I \$36,000 \$20, salmon (a) less than 0.5 (b) equal to 0.5 (c) greater than 0.5 (d) can t say; insufficient information. 4. Which of the following statements is true? (a) The social costs of monopolies are referred to as deadweight loss. (b) When producers respond to market prices in a previous time period, adjustments to market equilibrium occur in a random pattern. (c) Firms operating as monopolistic competitors, oligopolists, or monopolists may never incur a loss. (d) The profit maximizing level of output for any firm is determined where marginal revenue exceeds marginal cost. 2

3 5. Assume that a retailer sells 500 units of Yoplait Yogurt per day at a price of \$.40/unit. You, as an economic analyst, estimate that the cross-price elasticity between Yoplait Yogurt and Dannon Yogurt is 0.8. If the retailer raises the price of Dannon Yogurt by 10%, how would sales of Yoplait Yogurt be affected? (a) Sales of Yoplait Yogurt would not be affected at all. (b) Sales of Yoplait Yogurt would rise by 40 units. (c) Sales of Yoplait Yogurt would rise by 50 units. (d) can t say; insufficient information. 6. Given that the cross-price elasticity between Yoplait Yogurt and Dannon Yogurt is 0.8, then we can say that: (a) Dannon Yogurt and Yoplait Yogurt are substitutes. (b) Dannon Yogurt and Yoplait Yogurt are complements. (c) Dannon Yogurt and Yoplait Yogurt are independent. (d) can t say; insufficient information. 7. Suppose that a successful advertising and promotion campaign occurs for apples. Given this successful campaign, it is likely that: (a) the quantity of apples sold will fall and the price of apples will rise. (b) the quantity of apples sold will rise and the price of apples will rise. (c) the quantity of apples sold will fall and the price of apples will fall. (d) the quantity of apples sold will rise and the price of apples will fall. Consider the following table pertaining to corn production on a particular farm in Iowa. Assume conditions of perfect competition. Use this table to answer questions 8 through 10. Labor Corn roduction M (Hours) (Bushels) XXX When 15 hours of labor are used, corn production is equal to: (a) 80 bushels (b) 95 bushels (c) 110 bushels (d) can t say; insufficient information. 9. To what stage of production can we say this situation corresponds? (a) Stage 1 (b) Stage 2 (c) Stage 3 (d) can t say; insufficient information. 10. Assume that the price of corn is \$5/bushel. What is the change in total revenue received by this corn producer from Iowa when using one more hour of labor? (a) \$5 (b) the minimum wage (c) \$15 (d) can t say; insufficient information. 3

4 11. Which of the following statement(s) is(are) true? (a) If the cross-price elasticity of demand between two goods is negative, then the two goods are complements. (b) If the income elasticity of demand for a product is greater than 1, then the good is labeled a necessity. (c) If the income elasticity of demand for a product is negative, then the good is labeled an inferior good. (d) (a) and (c). 12. Which market structure best characterizes the following: there exists product differentiation and there are many sellers? (a) oligopoly (b) monopolistic competition (c) perfect competition (d) monopoly 13. Which of the following combinations of goods is in line with a cross-price elasticity equal to -0.3? (a) Kentucky fried chicken and Scope mouthwash. (b) ancakes and maple syrup. (c) epsi and Dr. epper. (d) none of the above 14. Suppose that a firm produces 10 units at a price of \$14 and 15 units at a price of \$12. Then marginal revenue is: (a) \$8 (b) \$40 (c) \$140 (d) \$ The use of more environmental restrictions on dairy production, while desirable, undoubtedly will raise the marginal costs of production. What are the likely consequences of these environmental practices, ceteris paribus? (a) rices of dairy outputs will rise and quantities produced will fall. (b) rices of dairy outputs will rise and quantities produced will rise. (c) rices of dairy outputs will fall and quantities produced will rise. (d) rices of dairy outputs will fall and quantities produced will fall. 4

5 Assume the following table corresponds to the production of avocados (thousands of pounds) using fertilizer (tons) as the variable input. Use this table to answer questions 16 through 20. Fertilizer Output of TFC (\$) TVC(\$) TC(\$) MC(\$) (tons) Avocados x t 16 w z y What is the value of w? (a) \$100 (b) \$200 (c) \$300 (d) can t tell; insufficient information 17. What is the value of x? (a) \$100 (b) \$300 (c) \$1,000 (d) \$2, What is the value of y? (a) \$300 (b) \$480 (c) \$1,000 (d) can t say; insufficient information 19. What is the value of z? (a) \$100 (b) \$200 (c) \$380 (d) \$ What is the value of t? (a) 4 tons (b) 7.6 tons (c) 10 tons (d) 16 tons 5

6 Use the following graphs to answer questions 21 through 22. (a) S 0 S 1 (b) S D D 0 D 1 (c) (d) S 1 S 0 S D D 1 D Which of the graphs describes the economic effects of a Hurricane Katrina in the production of sugar cane in Louisiana? 22. Which of the graphs is consistent with the economic impacts of a food recall or food safety scare (e.g. salmonella in contaminated poultry or E.coli in contaminated beef)? 23. Which of the following combinations of goods is in line with a cross-price elasticity equal to zero? (a) Kentucky fried chicken and Scope mouthwash. (b) ancakes and maple syrup. (c) epsi and Dr. epper. (d) none of the above 24. Which of the following statements is false? (a) The range of own-price elasticities that best characterize the supply curve for agricultural products at the farm level in the short run is 0.1 to 0.3. (b) Capital access and cost of capital are common barriers to entry. (c) The economic analysis of imperfect competition was originated by Edward Chamberlain and Joan Robinson. (d) If at a given market price, the quantity demanded by consumers exceeds the quantity supplied by producers, then a market surplus occurs. 6

7 25. According to this diagram, Monterey Jack cheese is what kind of good? I \$80,000 \$60,000 (a) (b) (c) (d) Monterey Jack Cheese (pounds) Luxury Necessity Inferior Can t tell, insufficient information. Given the following diagram and given the assumption of perfect competition, answer questions 26 to This firm will not produce unless the price is at or above: (a) \$16 (b) \$20 (c) \$30 (d) None of the above 27. The breakeven point for this firm is at a quantity of: (a) 8,000 units (b) 10,000 units (c) 12,000 units (d) 15,000 units 28. What is the maximum profit possible for the firm to achieve if the price received per unit is \$40? (a) \$72,000 (b) \$480,000 (c) \$600,000 (d) None of the above 7

8 29. If the firm produces 12,000 units, then the total fixed costs would be: (a) \$108,000 (b) \$300,000 (c) \$408,000 (d) can t tell, insufficient information. 30. The firm will incur a loss if: (a) the price per unit of output sold is \$34. (b) the price per unit of output sold is \$30. (c) the price per unit of output sold is \$25. (d) can t tell; insufficient information 31. Given the following graph, you may conclude that: I # of Dinners at the yro Restaurant (a) (b) (c) (d) dinners at the yro Restaurant may be classified as necessary goods. dinners at the yro Restaurant are luxury goods. dinners at the yro Restaurant are inferior goods. can t say; insufficient information. 32. What form of imperfect competition on the selling side is associated with farm equipment manufacturers (e.g. John Deere)? (a) monopolistic competition (b) oligopoly (c) monopoly (d) none of the above 33. Which of the following statements is true? (a) In perfect competition, farmers can set the price in their negotiations with buyers. (b) The fact that oligopolists match all price decreases of competitors but not necessarily price increases leads to a kinked market demand curve. (c) If a firm wishes to maximize profit, then the firm should operate in stage 2 of production. (d) (b) and (c). 8

9 34. Which of the following is true? (a) Total economic surplus is the sum of producer surplus and consumer surplus. (b) If total economic surplus is positive due to a shift in a demand or supply curve, society is better off. (c) The law of diminishing marginal returns states that as the use of an input increases, its M eventually will fall. (d) all of the above The following graph depicts a rightward shift in the supply curve. Use this graph to answer questions 35 through 38. The letters A through H correspond to areas under or above the respective supply and demand curves. A G B H C D E F I S o S 1 D 35. Which of the following statement is true? (a) This diagram could describe the impact of a bumper crop due to excellent weather conditions in a particular region of the United States. (b) This diagram could describe the impact of an unexpected freeze on the citrus industry in Florida. (c) This diagram could describe the economic effects of biotechnology, where the marginal costs of production fall by 5 percent. (d) (a) and (c) 36. The change in consumer surplus is given by: (a) - B-C (b) B - E (c) B + C (d) can t tell; insufficient information. 37. The change in producer surplus is given by: (a) - B-C (b) B - E (c) E - B (d) can t tell; insufficient information 9

10 38. The net effect on society is given by: (a) - B-C (b) C + E (c) -C E (d) B E 39. Which of the following statement(s) is(are) true? (a) A firm in perfect competition should hire an additional worker if marginal value product is greater than or equal to the wage rate. (b) In the short run, a firm should shut down if it cannot cover minimum average variable costs of production. (c) Firms operating in a perfectly competitive market structure produce a homogenous product. (d) All of the above. Use the graph below to answer questions 40 and 41. uantity of Canned Tomatoes per Day A B C E F G Labor (hours) 40. The M of labor between points C and F is: (a) 12 (b) 4 (c) 3 (d) can t tell; insufficient information 41. Which of the following statement(s) is(are) false? (a) The technical name of this relationship is the production function. (b) Labor is a variable input in the production of canned tomatoes. (c) Stage 3 of production never occurs. (d) none of the above 42. Which of the following statement(s) is(are) not a characteristic of an oligopoly? (a) few sellers (b) numerous sellers (c) restrictions on entry and exit in the marketplace (d) (b) and (c) 10

11 43. Which of the following statement(s) is(are) not true? (a) Commodity surplus and commodity shortage are examples of market disequilibria. (b) The supply curve for a firm is its entire MC curve. (c) roduct differentiation is the key difference between monopolistic competition and perfect competition. (d) None of the above. The following graph pertains to a monopolistic competitor. Use this graph to address questions 44 through 46. \$30 \$28 \$26 \$ What is the price charged and the output produced by the monopolistic competitor in order to maximize profits? (a) = \$24, = 45 (b) = \$28, = 55 (c) = \$30, = 45 (d) can t tell; insufficient information. 45. The maximum profit for this monopolistic competitor is: (a) \$ 180 (b) \$ 1,350 (c) \$ 1,540 (d) None of the above. 46. If the demand curve were to intersect the quantity axis, then would be equal to: (a) 90 (b) 100 (c) 110 (d) can t tell; insufficient information. 11

12 47. Given the following diagram, what is the own-price elasticity of supply between points A and B? \$4 \$2 A B S (a) 10 (b) 4/3 (c) 3/4 (d) 1/ Given the graph below, which of the following statement(s) is(are) true? \$3.00 \$2.00 S 800 1,000 1,200 (a) A shortage of 400 units exists when =\$3. (b) The market clearing price is \$2, and the market clearing quantity is 1,000. (c) A surplus of 400 units exists when = \$3. (d) (b) and (c) 49. Which of the following statement(s) is(are) false? (a) When T = 100 pounds and the level of the variable input labor is 20 hours, then A = 0.2 pounds/hour. (b) MC = AVC, when AVC = minimum (c) MC = ATC, when ATC = minimum (d) none of the above D 50. Considering the diagram to the right, which of the following statement(s) is(are) true? (a) consumer surplus = \$50 (b) producer surplus = \$100 (c) total economic surplus = \$150 (d) all of the above \$7 \$5 \$4 100 D S 12

### AGEC 105 Fall 2011 Test 2 Capps. (a) Name (b) UIN # (c) Section # (d) Sign the Aggie pledge on the back of your scantron.

AGEC 105 Fall 2011 Test 2 Capps lease put the following pieces of information on your scantron: (a) Name (b) UIN # (c) Section # (d) Sign the Aggie pledge on the back of your scantron. On my honor, as

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

PRACTICE FOR PERFECT COMPETITION Fatma Nur Karaman MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) What is the difference between perfect competition

### CH 13. Name: Class: Date: Multiple Choice Identify the choice that best completes the statement or answers the question.

Class: Date: CH 13 Multiple Choice Identify the choice that best completes the statement or answers the question. 1. One requirement for an industry to be perfectly competitive is that a. sellers and buyers

### Section I, Multiple Choice (40 points)

ECO 230, Final Exam Name: Summer I, 2003 Eastern Kentucky University Dr. Ruppel Section I, Multiple Choice (40 points): Circle the letter in front of the best answer. 1. If Canada can increase its production

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

AUBG, Fall 2015, Principles Micro with P. Stankov, Sample MT2 NOTE: The actual no. of questions on the actual MT will be 30, each for 0.67 grade points. MULTIPLE CHOICE. Choose the one alternative that

### ECON 102 Kagundu Final Exam (New Material) Practice Exam Solutions

www.liontutors.com ECON 102 Kagundu Final Exam (New Material) Practice Exam Solutions 1. A A large number of firms will be able to operate in the industry because you only need to produce a small amount

### Unit 6 Perfect Competition and Monopoly - Practice Problems

Unit 6 Perfect Competition and Monopoly - Practice Problems Multiple Choice Identify the choice that best completes the statement or answers the question. 1. One characteristic of a perfectly competitive

### Sample Exam Questions/Chapter 12. Use the following to answer question 1: Figure: Short-Run Costs

Sample Exam Questions/Chapter 12 Use the following to answer question 1: Figure: Short-Run Costs 1. (Figure: Short-Run Costs) Look at the figure Short-Run Costs. At the given price, the most profitable

### 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

### FINALTERM EXAMINATION FALL 2006

FINALTERM EXAMINATION FALL 2006 QUESTION NO: 1 (MARKS: 1) - PLEASE CHOOSE ONE Compared to the equilibrium price and quantity sold in a competitive market, a monopolist Will charge a price and sell a quantity.

### AGEC 105 Spring 2010 Test #1 Capps

Please put the following pieces of information on your scantron: (a) Name (b) UIN # (c) Section #: 501 502 503 (d) Sign the Aggie pledge on the back of your scantron. On my honor, as an Aggie, I have neither

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

Eastern Mediterranean University Faculty of Business and Economics Department of Economics 2014 15 Fall Semester ECON101 Introduction to Economics I Final Exam Type A 26 January 2015 Duration: 100 minutes

### ECON 102 Brown Final Exam (New Material) Practice Exam Solutions

www.liontutors.com ECON 102 Brown Final Exam (New Material) Practice Exam Solutions 1. B A very large percent of their earnings comes from economic rent 2. B Any funds left, after everyone who has a claim

### AGENDA Mon 10/12. Economics in Action Review QOD #21: Competitive Farming HW Review Pure Competition MR = MC HW: Read pp Q #7

AGENDA Mon 10/12 Economics in Action Review QOD #21: Competitive Farming HW Review Pure Competition MR = MC HW: Read pp 173-176 Q #7 QOD #21: Competitive Farming A purely competitive wheat farmer can sell

### 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

### Practice Exam 3: S201 Walker Fall 2004

Practice Exam 3: S201 Walker Fall 2004 I. Multiple Choice (3 points each) 1. Which of the following statements about the short-run is false? A. The marginal product of labor may increase or decrease. B.

### Econ 001: Midterm 2 (Dr. Stein) Answer Key March 23, 2011

Instructions: Econ 001: Midterm 2 (Dr. Stein) Answer Key March 23, 2011 This is a 60-minute examination. Write all answers in the blue books provided. Show all work. Use diagrams where appropriate and

### SCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME END SEMESTER EXAMINATION JULY 2016

All Rights Reserved No. of Pages - 08 No of Questions - 08 SCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME END SEMESTER EAMINATION JULY 2016 BEC 30325 Managerial

### Practice EXAM 3 Spring Professor Walker - E201

Practice EXAM 3 Spring 2009 - Professor Walker - E201 1. The theory behind short run production costs can be narrowed to an assumption that MC is expected to initially fall, but rise at larger levels of

### Practice Exam 3: S201 Walker Fall 2009

Practice Exam 3: S201 Walker Fall 2009 I. Multiple Choice (3 points each) 1. Which of the following statements about the short-run is false? A. The marginal product of labor may increase or decrease. B.

### INTRODUCTION ECONOMIC PROFITS

INTRODUCTION This chapter addresses the following key questions: What are profits? What are the unique characteristics of competitive firms? How much output will a competitive firm produce? Chapter 7 THE

### 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

### 23 Perfect Competition

23 Perfect Competition Learning Objectives After you have studied this chapter, you should be able to 1. define price taker, total revenues, marginal revenue, short-run shutdown price, short-run breakeven

### 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

### Perfect competition: occurs when none of the individual market participants (ie buyers or sellers) can influence the price of the product.

Perfect Competition In this section of work and the next one we derive the equilibrium positions of firms in order to determine whether or not it is profitable for a firm to produce and, if so, what quantities

### 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

### 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

### ECON 2100 (Summer 2015 Sections 07 & 08) Exam #3A

ECON 2100 (Summer 2015 Sections 07 & 08) Exam #3A Multiple Choice Questions: (3 points each) 1. I am taking of the exam. A. Version A 2. For a firm with market power Marginal Revenue, while for a firm

### Quiz #5 Week 04/12/2009 to 04/18/2009

Quiz #5 Week 04/12/2009 to 04/18/2009 You have 30 minutes to answer the following 17 multiple choice questions. Record your answers in the bubble sheet. Your grade in this quiz will count for 1% of your

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

Micro - HW 4 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) In central Florida during the spring, strawberry growers are price takers. The reason

### Perfect Competition CHAPTER14

Perfect Competition CHAPTER14 MARKET TYPES The four market types are Perfect competition Monopoly Monopolistic competition Oligopoly MARKET TYPES Perfect Competition Perfect competition exists when Many

### ECO 211 Microeconomics Yellow Pages ANSWERS. Unit 3

Spring 2013 ECO 211 Microeconomics Yellow Pages ANSWERS Unit 3 Mark Healy William Rainey Harper College E-Mail: mhealy@harpercollege.edu Office: J-262 Phone: 847-925-6352 1 Four Market Models CHARACTERISTIC

### 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

### 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

### Chapter 13 Perfect Competition

Chapter 13 Perfect Competition 13.1 A Firm's Profit-Maximizing Choices 1) Is the number of sellers in the market the only thing that is different in each of the four market types economists study? Answer:

### Introduction to Agricultural Economics Agricultural Economics 105 Spring 2016 First Hour Exam Version 1

1 Name Introduction to Agricultural Economics Agricultural Economics 105 Spring 2016 First Hour Exam Version 1 There is only ONE best, correct answer per question. Place your answer on the attached sheet.

### 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

### Econ 98 (CHIU) Midterm 1 Review: Part A Fall 2004

Disclaimer: The review may help you prepare for the exam. The review is not comprehensive and the selected topics may not be representative of the exam. In fact, we do not know what will be on the exam.

### Slides and Images, Worth Publishers Inc. 8-1

Perfect Competition Michael J. Murray Slides and Images, Worth Publishers Inc. 8-1 Market Structure Analysis By observing a few industry characteristics, we can predict pricing and output behavior of the

### 6) The mailing must be postmarked by June 15. 7) If you have any questions please me at

Examination Instructions: 1) Answer the examination only after you have read the honesty pledge below. 2) The multiple choice section will be taken in WebCT and a tutorial for using WebCT is to be found

### Pure Competition in the Short Run

08 Pure Competition in the Short Run McGraw-Hill/Irwin Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. LO1 8-2 Four Market Models Pure competition Pure monopoly Monopolistic competition

### DURATION: 3 HOURS TOTAL MARKS: 100. External Examiner: MR MAG Darroch Internal Examiners: Dr E Wale and Prof GF Ortmann

DURATION: 3 HOURS TOTAL MARKS: 100 External Examiner: MR MAG Darroch Internal Examiners: Dr E Wale and Prof GF Ortmann NOTE: THIS PAPER CONSISTS OF 9 PAGES. PLEASE SEE THAT YOU HAVE THEM ALL. ANSWER SECTIONS

### ECO 2023 Principles of Microeconomics Fall 2013 Practice Test #2. 1. Which of the following are factors of production?

ECO 2023 Principles of Microeconomics Fall 2013 Practice Test #2 1. Which of the following are factors of production? A. Output in a production function. B. Productivity. C. Land, labor, capital, and entrepreneurship.

### Introduction to Agricultural Economics Agricultural Economics 105 Spring 2015 First Hour Exam Version 1

1 Introduction to Agricultural Economics Agricultural Economics 105 Spring 2015 First Hour Exam Version 1 Name Section There is only ONE best, correct answer per question. Place your answer on the attached

### 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

### short run long run short run consumer surplus producer surplus marginal revenue

Test 3 Econ 3144 Name Fall 2005 Dr. Rupp 20 Multiple Choice Questions (50 points) & 4 Discussion (50 points) Signature I have neither given nor received aid on this exam Use this table to answer questions

### Sample. Final Exam Sample Instructor: Jin Luo

Final Exam Instructor: Jin Luo Multiple Choice (2 *30 = 60) Identify the letter of the choice that best completes the statement or answers the question. 1. Price takers refer to buyers and sellers in a.

### 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

### Question Paper Business Economics I (MB1B3): January 2009

Question Paper Business Economics I (MB1B3): January 2009 Answer all 78 questions. Marks are indicated against each question. 1. Which of the following is not responsible for an increase in demand for

### 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

### 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

### MICROECONOMICS - CLUTCH CH PERFECT COMPETITION.

!! www.clutchprep.com CONCEPT: THE FOUR MARKET MODELS Market structure describes the environment in which a firm operates, determined by the Perfect Competition Monopolistic Competition Oligopoly Monopoly

### Exam 1. Price \$ per minute \$.55 \$.30 \$.25 \$.05. Figure 1. a) 4 b) 5 c) d) 11 e) none

ECONOMICS 10-008 Dr. John Stewart September 24, 2002 Exam 1 Instructions: Mark the letter for your chosen answer for each question on the computer readable answer sheet using a No.2 pencil. Note =1, b)=2

### 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

### 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

### ECON 2100 (Summer 2015 Sections 07 & 08) Exam #3C

ECON 21 (Summer 215 Sections 7 & 8) Exam #3C Multiple Choice Questions: (3 points each) 1. I am taking of the exam. C. Version C 2. is a market structure in which there is one single seller of a unique

### 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

### FINAL EXAMINATION. Special Instructions: Date: DECEMBER 15, 2000 School Year: Course and No.: ECON1006EA Time: 1:30 PM- 3:30 PM

FINAL EXAMINATION Date: DECEMBER 15, 2000 School Year: 2000-2001 Course and No.: ECON1006EA Time: 1:30 PM- 3:30 PM Professor: SARLO, C Department: Arts & Science Number of Pages: 11 + cover Time Allowed:

### 1. Why is utility subjective? 2. What are inferior options? 3. Suppose the price of A is 1, the price of B is 2 and the price of C is 1.

Study Questions for Chapters 7-11 Chapter 7 1. Why is utility subjective? 2. What are inferior options? 3. Suppose the price of A is 1, the price of B is 2 and the price of C is 1.50 a. Complete the following

### 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

### 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

### Graded exercise questions. Level (I, ii, iii)

Graded exercise questions Level (I, ii, iii) 248 MICRO ECONOMICS LEVEL 1 GRADED EXERCISE QUESTIONS (LEVEL I, II, III) INTRODUCTION 1. Why does an economic problem arise? 2. What is economics about? 3.

### Introduction to Agricultural Economics Agricultural Economics 105 Spring 2017 First Hour Exam Version 1

1 Name Introduction to Agricultural Economics Agricultural Economics 105 Spring 2017 First Hour Exam Version 1 There is only ONE best, correct answer per question. Place your answer on the attached sheet.

### 2007 Thomson South-Western

Monopolistic Competition Characteristics: Many sellers Product differentiation Free entry and exit In the long run, profits are driven to zero Firms have some control over price What does the costs graph

### CH 14: Perfect Competition

CH 14: Perfect Competition Characteristics of Perfect Competition 1. Both buyers and sellers are price takers A price taker is a firm (or individual) who takes the price determined by market supply and

### Ecn Intermediate Microeconomic Theory University of California - Davis June 11, 2009 Instructor: John Parman. Final Exam

Ecn 100 - Intermediate Microeconomic Theory University of California - Davis June 11, 2009 Instructor: John Parman Final Exam You have until 8pm to complete the exam, be certain to use your time wisely.

### 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

### Exam 1. Pizzas. (per day) Figure 1

ECONOMICS 10-008 Dr. John Stewart Sept. 30, 2003 Exam 1 Instructions: Mark the letter for your chosen answer for each question on the computer readable answer sheet using a No.2 pencil. Note a)=1, b)=2

### CHAPTER 8 Competitive Firms and Markets

CHAPTER 8 Competitive Firms and Markets CHAPTER OUTLINE 8.1 Competition Price Taking Why the Firm s Demand Curve Is Horizontal Why We Study Competition 8.2 Profit Maximization Profit Two Steps to Maximizing

### ECON 2100 (Summer 2016 Sections 10 & 11) Exam #3C

ECON 21 (Summer 216 Sections 1 & 11) Exam #3C Multiple Choice Questions: (3 points each) 1. I am taking of the exam. C. Version C 2. is a market structure in which there is one single seller of a unique

### ECON 2100 (Summer 2016 Sections 10 & 11) Exam #3D

ECON 21 (Summer 216 Sections 1 & 11) Exam #3D Multiple Choice Questions: (3 points each) 1. I am taking of the exam. D. Version D 2. is a market structure in which there is one single seller of a unique

### Exam #2 Time: 1h 15m Date: 10 July Instructor: Brian B. Young. Multiple Choice. 2 points each

Economics 212 Microeconomic Principles Exam #2 Time: 1h 15m Date: 10 July 2013 Name The value of this exam is 100 points. Instructor: Brian B. Young Please show your work where appropriate! Multiple Choice

### MARKETS. Part Review. Reading Between the Lines SONY CORP. HAS CUT THE U.S. PRICE OF ITS PLAYSTATION 2

Part Review 4 FIRMS AND MARKETS Reading Between the Lines SONY CORP. HAS CUT THE U.S. PRICE OF ITS PLAYSTATION 2 On May 14, 2002 Sony announced it was cutting the cost of its PlayStation 2 by 33 percent,

### Syllabus item: 42 Weight: 3

1.5 Theory of the firm and its market structures - Production and costs Syllabus item: 42 Weight: 3 Definition: Total product (TP): The total output that a firm produces, using its fixed and variable factors

### UNIVERSITY OF TORONTO Faculty of Arts and Science APRIL/MAY EXAMINATIONS 2006 ECO 100Y1 Y. Duration: 3 hours

UNIVERSITY OF TORONTO Faculty of Arts and Science APRIL/MAY EXAMINATIONS 2006 ECO 100Y1 Y Duration: 3 hours Examination Aids allowed: Non-programmable calculators only INSTRUCTIONS: Students are required

### 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

### ECON 4550 (Fall 2011) Exam 1

ECON 455 (Fall 211) Exam 1 Name Multiple Choice Questions: (4 points each) 1. Jimmy is risk neutral. He is faced with a random payoff with expected value of \$2,. Further, for this payoff the highest possible

### 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

### Chapter 1- Introduction

Chapter 1- Introduction A SIMPLE ECONOMY Central PROBLEMS OF AN ECONOMY: scarcity of resources problem of choice Every society has to decide on how to use its scarce resources. Production, exchange and

### 2) All combinations of capital and labor along a given isoquant cost the same amount.

Micro Problem Set III WCC Fall 2014 A=True / B=False 15 Points 1) If MC is greater than AVC, AVC must be rising. 2) All combinations of capital and labor along a given isoquant cost the same amount. 3)

### Whoever claims that economic competition represents 'survival of the fittest' in the sense of the law of the jungle, provides the clearest possible

Whoever claims that economic competition represents 'survival of the fittest' in the sense of the law of the jungle, provides the clearest possible evidence of his lack of knowledge of economics. -George

### ECON 101: Principles of Microeconomics Discussion Section Week 12 TA: Kanit Kuevibulvanich

Important Concepts: Monopoly ECON 101: Principles of Microeconomics Discussion Section Week 12 Comparison of Perfectly Competitive Market and Monopoly Market Perfect Competition Monopoly Number of Participants

### 8 CHAPTER OUTLINE Costs in the Short Run Fixed Costs

e PART II I The Market System: Choices Made by Households and Firms e CASE FAIR OSTER PEARSON 2012 Pearson Education, Inc. Publishing as Prentice Hall PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I

### 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

### FOUNDATION COURSE MOCK TEST PAPER PAPER 4: PART I : BUSINESS ECONOMICS

FOUNDATION COURSE MOCK TEST PAPER PAPER 4: PART I : BUSINESS ECONOMICS QUESTIONS 1. Economics is a Science which deals with wealth was referred by Alfred Marshal J.B. Say Adam Smith A.C. Pigou. 2. Exploitation

### Quiz #4 Week 04/05/2009 to 04/11/2009

Quiz #4 Week 04/05/2009 to 04/11/2009 You have 30 minutes to answer the following 15 multiple choice questions. Record your answers in the bubble sheet. Your grade in this quiz will count for 1% of your

### ECONOMICS CHAPTER 9: FORMS OF MARKET

ECONOMICS CHAPTER 9: FORMS OF MARKET Class: XII(ISC) 2017-2018 Q1) Difference between Oligopoly and Monopolistic competition. Basis Oligopoly Monopolistic competition 1. Meaning It is that form of market

### Thanksgiving Handout Economics 101 Fall 2000

Thanksgiving Handout Economics 101 Fall 2000 The purpose of this handout is to provide a variety of problems illustrating many of the ideas that we have discussed in class this semester. The questions

### 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

### The above Figure 1 shows the demand and cost curves facing a monopolist.

Practice 13&14 1) The key characteristics of a monopolistically competitive market structure include A) few sellers. B) sellers selling similar but differentiated products. C) high barriers to entry. D)

### REDEEMER S UNIVERSITY

REDEEMER S UNIVERSITY Km 46/48 Lagos Ibadan Expressway, Redemption City, Ogun State COLLEGE OF MANAGEMENT SCIENCE DEPARTMENT OF ECONOMICS AND BUSINESS STUDIES COURSE CODE /TITLE ECO 202/Microeconomics

### 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.

### ECONOMICS SOLUTION BOOK 2ND PUC. Unit 6. I. Choose the correct answer (each question carries 1 mark)

Unit 6 I. Choose the correct answer (each question carries 1 mark) 1. A market structure which produces heterogenous products is called: a) Monopoly b) Monopolistic competition c) Perfect competition d)

### 7. True/False: Perfectly competitive firms can earn economic profits in the long run. a. True b. False

Economics 4020 Dr. Rupp Test #1 Sept 27 th, 2012 20 Multiple Choice questions (2.5 points each) Pledge (sign) I did not copy another student s answers 1. STC = 40 + 10Q + 0.1Q 2. SMC = 10 + 0.2Q. The market

### 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

### MIDTERM II. GROUP A Instructions: December 18, 2013

EC101 Sections 03 Fall 2013 NAME: ID #: SECTION: MIDTERM II December 18, 2013 GROUP A Instructions: You have 60 minutes to complete the exam. There will be no extensions. The exam consists of 30 multiple

### 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

### 1.3. Levels and Rates of Change Levels: example, wages and income versus Rates: example, inflation and growth Example: Box 1.3

1 Chapter 1 1.1. Scarcity, Choice, Opportunity Cost Definition of Economics: Resources versus Wants Wants: more and better unlimited Versus Needs: essential limited Versus Demand: ability to pay + want