# Name Block Date. Three parts: 1) Additional Concept practice; 2) Concept Review Qs; 3) Graphing Review

Size: px
Start display at page:

Download "Name Block Date. Three parts: 1) Additional Concept practice; 2) Concept Review Qs; 3) Graphing Review"

Transcription

1 Name Block Date Choose-Your-Own S1 Study Adventure AP Microeconomics Three parts: 1) Additional Concept practice; 2) Concept Review Qs; 3) Graphing Review Part 1: Additional concept practice Perfect competition final practice 1. Draw side- by- side graphs for market for staplers and Stapler Steve, a typical stapler producer, in long- run equilibrium. Assume that producers are in a constant- cost industry (all producers face the same cost curves). Check your labels: Identify which graph is the industry Identify which graph is the firm Label Pm1, Qm1 for market P&Q Label Pf1, Qf1 for firm P&Q. Label all curves S, D, MC, ATC, AVC, MR DARP MC hits ATC at its minimum AVC is below ATC 2. Imagine American schools move to one- to- one classrooms and away from paper- based teaching, decreasing demand for paper. Assume that paper and staples are complements. Show the effect on the market for staples and Stapler Steve in the short run. Label Pm2, Qm2 for market Label Pf2, Qf2 for firm Label S2 and/or D2 (and identify S1 or D1) Label any new curves (and identify which was the old one) 3. How does the ATC for Stapler Steve at Qf2 compare with Pm2? 4. In the long run, what should Stapler Steve do? Explain. 5. In the long run, what additional effect will one- to- one classrooms have on the market for staplers? Explain. Extra: Will any stapler producers survive? Under what circumstances? Perhaps consider the role of economies of scale. 1

2 Additional perfect competition review questions: 2

4 Supply and Demand, Consumer Surplus Here is a graph of supply and demand in a competitive market for dates (the fruit). A. Why is demand downward sloping? B. Why is supply upward sloping? C. What is the current equilibrium price and quantity in this market? D. Why couldn t one producer just lower her prices to take more business? E. Calculate or shade in on the graph consumer surplus in this market. F. Calculate or shade in on the graph producer surplus in this market. G. Is total surplus maximized in this market? How does this indicate that this market is efficient? H. For each of the following, indicate with words or with a drawing how demand will shift, supply will shift, or whether it is simply a movement along the demand or supply curve. Make sure you say whether demand will shift left or right and show or explain what happens to price and quantity. 1. New medical research has shown that dates make people more attractive to romantic partners. 2. The price of dates drops causing more people to buy dates. 3. A terrible plague of locusts destroys the date crop in Europe. 4. Figs, a substitute for dates, increase in price. 5. Date growing technology improves and, at the same time, a financial crisis causes many family incomes to fall drastically. 4

5 Price controls, taxes, elasticity, deadweight loss A. To close the gap in pay, the government is considering a minimum wage for female workers. It is depicted by the graph below. W = Wage (or price of female labor) and QL is Quantity of female labor. Please use the graph and your knowledge of economics to answer the questions below. 1. Which wage, W1 or W2, represents the minimum wage in this labor market? 2. Is the minimum wage considered a price floor or a price ceiling? Explain. 3. After the minimum wage is put into place, what quantity of female workers will have a job, Q1, Q2, or Q3? 4. Will the new minimum wage cause a surplus (unemployment) or a shortage (need) of workers? 5. Is this policy efficient? Why or why not? 6. What is the unintended consequence of this policy? B. Imagine instead that policymakers think placing an excise tax on labor would be better. Policymakers think perhaps they may use the additional tax revenue to subsidize math and science programs for girls. The tax is paid by the workers (supply). Supply0 is the supply of labor people are willing to supply at the market price. Supply1 shows how people s willingness to supply their labor changes due to the tax. 1. What is the new quantity of labor supplied in the market, Q0 or Q1? 2. What wage do employers have to pay after the tax is imposed, P0, P1, or P2? 3. What wage do workers receive in their pocket after the pay the tax, P0, P1, or P2? 4. What is the government s tax revenue? Shade it in or describe the rectangle. 5. Is there any deadweight loss or inefficiency in this market due to the tax? Explain. 6. What does elasticity mean? 5

6 7. If labor supply were less elastic, would the deadweight loss be bigger or smaller? 8. What, if any, unintended consequences of the policy exist? 6

7 Part 2: Concept review questions, by chapter Chapters 1+2 1) What is scarcity? 2) What is the fundamental problem faced in all economies? 3) What is opportunity cost? 4) What do economists mean by efficiency? 5) What is the difference between efficiency and equity? 6) What is the fundamental difference between a market economy and a command economy? 7) What does the PPF show us? 8) What causes movements or shifts of the PPF? 9) How can trade allow for possible points beyond the PPF? 10) What is the difference between absolute and comparative advantage? 11) How can you calculate comparative advantage between two parties? Chapters 3 & 4 12) What is the difference between a shift in supply/demand and change in the amount supplied/demanded? 13) What are all of the determinants (shifters) of the demand curve? 14) What are the shifters of supply? 15) How do shifts to supply and demand affect the equilibrium price and quantity? 16) What s the difference between normal and inferior goods? 17) What s the difference between substitutes and compliments? 18) Describe efficiency when the market is in equilibrium. 19) How are consumer, producer, and total surplus calculated? Chapter 5, 6, & 7 20) What is a price floor? Example? 21) What effects does a price floor have on the market? 22) What is a price ceiling? Example? 23) What effect does a price ceiling have on the market? 24) When do price floors and price ceilings have no effect? 25) How do price floors and price ceilings create deadweight loss? 26) What is an excise (per- unit) tax? Sales tax? Income tax? 27) How do you calculate tax revenue in the supply and demand model? 28) What is elasticity? 29) How does elasticity of supply and demand affect who bears the tax (the tax incidence)? 30) How are price elasticities of supply and demand, cross- price elasticity, and income elasticity calculated? Chapters 9 & 10 31) What s utility? 32) How do marginal utility and total utility differ? 33) How does a person decide how much of something to consume? 34) What is the utility maximization / optimal consumption rule, given a budget constraint? 7

8 Chapters 11 & 12 35) What is the difference between short- and long- run? 36) What are the three kinds of returns to inputs? Identify why returns to inputs aren t always constant (e.g., relationship between inputs and outputs). 37) How does a firm judge its returns to scale using LRATC? 38) What are the four market structures, and how do they differ in terms of number of firms, product differentiation, barriers to entry/exit, information, and market power? 39) How are average costs derived from total costs? 40) What is marginal cost? 41) What causes a cost curve to shift upward (e.g., increase)? 42) How are MC and ATC related? 43) How is profit calculated? 44) When does a firm profit? 45) What is the only decision a firm can make in the short- run under perfect competition? 46) How does a firm decide what changes to make in production? 47) What incentives do short- run profits or losses present to a firm in the industry? Outside the industry? 48) Under perfect competition, what happens to firms in that remain in the industry in the long- run? 49) When firms under perfect competition are in long- run equilibrium, how are MC, ATC, and MR DARP related? 50) What does a firm s short- run supply curve look like? Part 3: Graphing Review Know how to draw, label, and interpret the graphs below. You also should understand how shifts will change the graph. 1) Production Possibility Frontier (or graph or curve) - see questions above. Also consider how the PPF can shift inward and outward. 8

9 2) Supply and Demand a) How do shifts in supply and demand change the price and quantity? b) How can you calculate elasticity from this graph? (don t stress about midpoint formula) c) How can you calculate consumer and producer surplus from this graph? d) What does a tax look like on the supply and demand graph and how does it change price and quantity? e) What do price controls look like on this graph? f) What creates deadweight loss on this graph? 3) Production Function A. What are the three stages of returns? B. Why does diminishing returns occur? 9

10 4) Short Run Costs Curves a) What does each curve represent? b) Why do the curves have the shape that they do? c) How can you calculate average fixed cost at a given quantity? d) Where does MC intersect the other curves (esp ATC)? 5) Long Run Cost Curves a) What is the difference between economies and diseconomies of scale? b) How is the Long Run Average Total Cost Curve created? 6) Industry and Firm in Perfect Competition 10

11 a) Why is MR = D = AR = P? b) How does the industry set the price? c) How does a firm choose how much to produce? d) How can you calculate profit? e) What is the break even price? Shut down price? f) When should a firm shut down in the short run? g) When should a firm shut down in the long run? h) What will price end up being in the long run? i) How does economic profit differ from accounting profit? 11

### 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

### 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

### 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:

### 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

### 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

### AP Microeconomics: Test 2 Study Guide

AP Microeconomics: Test 2 Study Guide Mr. Warkentin nwarkentin@wyomingseminary.org 203 Sprague Hall 2017-2018 Academic Year Directions: The purpose of this sheet is to quickly capture the topics and skills

### MICRO FINAL EXAM Study Guide

AP MICROECONOMICS-217 Name: MICRO FINAL EXAM Study Guide Instructions: Please fight senioritis! Study & be efficient with your time. DUE: Friday April 28 th (Multiple choice block 4/26 th or 27 th Free

### 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

### 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

### Monopoly. 3 Microeconomics LESSON 5. Introduction and Description. Time Required. Materials

LESSON 5 Monopoly Introduction and Description Lesson 5 extends the theory of the firm to the model of a Students will see that the profit-maximization rules for the monopoly are the same as they were

### 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

### 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 *

### 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 *

### 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

### 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

### 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

### 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

### 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

### Week One What is economics? Chapter 1

Week One What is economics? Chapter 1 Economics: is the social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with scarcity and the incentives

### AP Microeconomics Review Session #3 Key Terms & Concepts

The Firm, Profit, and the Costs of Production 1. Explicit vs. implicit costs 2. Short-run vs. long-run decisions 3. Fixed inputs vs. variable inputs 4. Short-run production measures: be able to calculate/graph

### 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

### ECON 101 MIDTERM 1 REVIEW SESSION SOLUTIONS (WINTER 2015) BY BENJI HUANG

ECON 101 MIDTERM 1 REVIEW SESSION SOLUTIONS (WINTER 2015) BY BENJI HUANG TABLE OF CONTENT I. CHAPTER 1: WHAT IS ECONOMICS II. CHAPTER 2: THE ECONOMIC PROBLEM III. CHAPTER 3: DEMAND AND SUPPLY IV. CHAPTER

### Eco201 Review Outline for Final Exam, Fall 2013, Prof. Bill Even

Note: The outline is intended to provide the student with a list of the major topics that will be on the final exam. The instructor is not limited to questions that fit into one of these precise categories,

### T ( P ( ) * FA F D A S

Supply and Demand Basics Law of Supply Law of Demand Equilibrium Key Topics Demand Supply Equilibrium (shortage/surplus) Floor/Ceiling Elasticity Indifference Curves Utility Physical Product (Supply Side)

### 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

### 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)

### 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

### Eco201 Review Outline for Final Exam, Fall 2018, Prof. Bill Even

Note: The outline is intended to provide the student with a list of the major topics that will be on the final exam. The instructor is not limited to questions that fit into one of these precise categories,

### 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

### 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.

### AP Microeconomics [last name, first name] Pre-Test

AP Microeconomics [last name, first name] Pre-Test Directions: Use pencil only to answer the following questions. Return your completed pre-test on the first day of class. READING GRAPHS 1: Refer to the

### 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

### Homework 2 Answer Key

Econ 226 Principles of Microeconomics Fall, 24 Dr. Kathryn Wilson Due Date: Tuesday, September 28 th Homework 2 Answer Key 1. When the of movie admissions increases from \$7 to \$8, the demanded falls from

### 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

### Econ 300: Intermediate Microeconomics, Spring 2014 Final Exam Study Guide 1

Econ 300: Intermediate Microeconomics, Spring 2014 Final Exam Study Guide 1 Chronological order of topics covered in class (to the best of my memory). Introduction to Microeconomics (Chapter 1) What is

### 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

### Chief Reader Report on Student Responses:

Chief Reader Report on Student Responses: 2017 AP Microeconomics Free-Response Questions Number of Students Scored 87,858 Number of Readers 92 Score Distribution Exam Score N %At Global Mean 3.26 5 20,614

### 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

### 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

### Name Date Period -Econ Unit 2: Chapter 4-7- Demand, Supply, Prices and Markets

/ 88 Packet /20 Notes Unit 2 BIG PICTURE Questions /12 Name Date Period -Econ Unit 2: Chapter 4-7- Demand, Supply, Prices and Markets /108 Total Packet What is BIG PICTURE for Unit 2? To find the answer,

### ADVANCED PLACEMENT MICROECONOMICS Maple Grove Senior High School Jeff Rush Social Studies Department

ADVANCED PLACEMENT MICROECONOMICS Maple Grove Senior High School Jeff Rush rushj@district279.org Social Studies Department Required textbook Economics, McConnell and Brue, 17 th edition, 2008. Course description

### 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

### Unit II: Supply, Demand, and Consumer Choice Problem Set #2

1. /20 4. /30 2. /20 5. /10 3. /10 6. /10 Total: /100 Name: Team: Unit II: Supply, Demand, and Consumer Choice Problem Set #2 1. EXPLAIN an experience or example that shows the real world application of

### ECON 102 Brown Final Exam Practice Exam Solutions

www.liontutors.com ECON 102 Brown Final Exam Practice Exam Solutions 1. B 2. C 3. C All products are identical (homogenous) in perfect competition so there is no such thing as brand preference. 4. C Breakeven

### The following key should help you understand the different types of activities students engage in during the course:

AP Microeconomics Course Overview Name Description AP Microeconomics AP Microeconomics studies the behavior of individuals and businesses as they exchange goods and services in the marketplace. Students

### Chapter 17: Labor Markets

Chapter 17: Labor Markets Econ 102: Introduction to Microeconomics 1 1.1 Goals of this class Goals of this class Learn how employment and wages are determined in equilibrium. Learn what can shift labor

### SAMPLE FINAL. Part I - Multiple Choice Questions:

Part I - Multiple Choice Questions: SAMPLE FINAL 1. Which of the following is not a characteristic of a perfectly competitive market? a. Firms are price takers. b. Firms have difficulty entering the market.

### MICROECONOMICS DIAGRAMS

MICROECONOMICS DIAGRAMS 1. Abnormal Profit 5. Average Fixed Costs 2. ad valorem tax At Qpm, Ppm > Pcost All costs are covered and then some! 6. Average Product The red line diminishes, but never becomes

### All but which of the following are true in the long-run for a competitive firm that maximizes profits?

Microeconomics, Module 11: Monopoly (Chapter 10) Illustrative Test Questions (The attached PDF file has better formatting.) Question 11.1: Profit Maximization: Monopoly Which of the following is true in

### ECON 251. Exam 1 Pink. Fall 2013

ECON 251 1. By definition, opportunity cost is a. The value of the best alternative b. The sum of the value of all available alternatives c. The amount of money it takes to buy an item d. Always greater

### 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

### UNIVERSITY OF VICTORIA EXAMINATIONS APRIL 2006 ECON 103

UNIVERSITY OF VICTORIA EXAMINATIONS APRIL 2006 ECON 103 NAME: INSTRUCTOR: STUDENT NO: SECTION: DURATION: TWO (2) HOURS TO BE ANSWERED ON THE PAPER AND ON N.C.S. ANSWER SHEETS STUDENTS MUST COUNT THE NUMBER

### Managerial Economics Prof. Trupti Mishra S.J.M School of Management Indian Institute of Technology, Bombay. Lecture -29 Monopoly (Contd )

Managerial Economics Prof. Trupti Mishra S.J.M School of Management Indian Institute of Technology, Bombay Lecture -29 Monopoly (Contd ) In today s session, we will continue our discussion on monopoly.

### Bremen School District 228 Social Studies Common Assessment 2: Midterm

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

### 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

### DEMAND AND SUPPLY. Chapter 3. Principles of Macroeconomics by OpenStax College is licensed under a Creative Commons Attribution 3.

DEMAND AND SUPPLY Chapter 3 Principles of Macroeconomics by OpenStax College is licensed under a Creative Commons Attribution 3.0 Unported License Demand for Goods and Services Demand refers to the amount

### Contents EXPLORING ECONOMICS

Contents About the authors I-5 Preface to second edition I-7 Chapter-heads I-9 Syllabus : Choice Based Credit System (CBCS) I-19 1 EXPLORING ECONOMICS 1.1 Why study economics? 1 1.2 Meaning of economics

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

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

### This is the midterm 1 solution guide for Fall 2012 Form A. 1) The answer to this question is A, corresponding to Form A.

This is the midterm 1 solution guide for Fall 2012 Form A. 1) The answer to this question is A, corresponding to Form A. 2) Since widgets are an inferior good (like ramen noodles) and income increases,

### AP Microeconomics. Content Skills Learning Targets Assessment Resources & Technology

St. Michael Albertville High School Teacher: Matthew Rooker AP Microeconomics October 2014 Content Skills Learning Targets Assessment Resources & Technology November 2014 Content Skills Learning Targets

### 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. Quantity demanded vs demand: quantity demanded is

### 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

### Essential Graphs for Microeconomics

Essential Graphs for Microeconomics Basic Economic Concepts! roduction ossibilities Curve Good X A F B C W Concepts: oints on the curve-efficient oints inside the curve-inefficient oints outside the curve-unattainable

### Econ: CH 7 Test Review Demand & Supply

Econ: CH 7 Test Review Demand & Supply The Big Idea: 1. Scarcity is the basic economic problem that requires people to make choices about how to use limited resources 2. Buyers and sellers voluntarily

### CH 15: Monopoly. Lecture

CH 15: Monopoly Lecture Characteristics of Monopolies A monopoly is a market structure in which one firm makes up the entire market Firm=Industry Characteristics of Monopolies The monopolist is a price

### 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

### Chief Reader Report on Student Responses:

Chief Reader Report on Student Responses: 2018 AP Microeconomics Free-Response Questions Number of Students Scored 90,032 Number of Readers 91 Score Distribution Exam Score N %At 5 18,827 20.9 4 25,070

### 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

### Chapter 13. Microeconomics. Monopolistic Competition: The Competitive Model in a More Realistic Setting

Microeconomics Modified by: Yun Wang Florida International University Spring, 2018 1 Chapter 13 Monopolistic Competition: The Competitive Model in a More Realistic Setting Chapter Outline 13.1 Demand and

### ECO 162: MICROECONOMICS

ECO 162: MICROECONOMICS PREPARED BY Dr. V.G.R. CHANDRAN Email: vgrchan@gmail.com Website: www.vgrchandran.com/default.html UNIVERSITI TEKNOLOGI MARA 0 P a g e TUTORIAL QUESTIONS ALL RIGHTS RESERVED 2010

### Total Costs. TC = TFC + TVC TFC = Fixed Costs. TVC = Variable Costs. Constant costs paid regardless of production

AP Microeconomics Total Costs TC = TFC + TVC TFC = Fixed Costs Constant costs paid regardless of production TVC = Variable Costs Costs that vary as production is changed Cost TFC TVC TFC Output Profit

### Pledge (sign) I did not copy another student s answers

Economics 4020 Dr. Rupp Test #1 Fri. Sept 23 rd, 2011 20 Multiple Choice questions (2.5 points each) Pledge (sign) I did not copy another student s answers 1. The profit maximization rule for a firm is

### 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

### Instructions: DUE: day of your unit exam Block Period 1/31 st or 2/1 st

----------------- AP MICROECONOMICS-2018 MICRO Unit #1 Study Guide Name: Instructions: UE: day of your unit exam Block Period 1/31 st or 2/1 st Section 1: SUPPLY & EMAN (review Section from Semester 1)

### EC 201 Lecture Notes 1 Page 1 of 1

EC 201 Lecture Notes 1 Page 1 of 1 ECON 201 - Macroeconomics Lecture Notes 1 Metropolitan State University Allen Bellas The textbooks for this course are Macroeconomics: Principles and Policy by William

### 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

### Eastern Mediterranean University Faculty of Business and Economics Department of Economics Fall Semester. ECON 101 Mid term Exam

Eastern Mediterranean University Faculty of Business and Economics Department of Economics 2014 15 Fall Semester ECON 101 Mid term Exam Type A 28 November 2014 Duration: 90 minutes Name Surname: Group

### AP Microeconomics Review Sample Questions

AP Microeconomics Review Sample Questions Sample Multiple-Choice Questions The following are examples of the kinds of multiple-choice questions found on the examination. The distribution of topics and

### = AFC + AVC = (FC + VC)

Chapter 13-14: Marginal Product, Costs, Revenue, and Profit Production Function The relationship between the quantity of inputs (workers) and quantity of outputs Total product (TP) is the total amount

### Supply, Demand, and Government Policies. Copyright 2004 South-Western

Supply, Demand, and Government Policies Copyright 2004 South-Western Supply, Demand, and Government Policies In a free, unregulated market system, market forces establish equilibrium prices and exchange

### Chapter 1: The Ten Lessons in Economics

Textbook Notes Page 1 Chapter 1: The Ten Lessons in Economics Saturday, 25 May 2013 1:09 PM Economics: The study of how society manages its scarce resources Individual Decision-Making Lesson 1: People

### Lesson 3-2 Profit Maximization

Lesson 3-2 Profit Maximization Standard 3b: Students will explain the 5 dimensions of market structure and identify how perfect competition, monopoly, monopolistic competition, and oligopoly are characterized

### 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

### Chapter 33: Terms of Trade

Chapter 33: Terms of Trade 1 The Terms of Trade The division of the gains from trade depends on the terms of trade. The terms of trade are measured by the ratio of the price of exports to the price of

### 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

### 2010 Pearson Education Canada

What Is Perfect Competition? Perfect competition is an industry in which Many firms sell identical products to many buyers. There are no restrictions to entry into the industry. Established firms have

### JANUARY EXAMINATIONS 2008

No. of Pages: (A) 9 No. of Questions: 38 EC1000A micro 2008 JANUARY EXAMINATIONS 2008 Subject Title of Paper ECONOMICS EC1000 MICROECONOMICS Time Allowed Two Hours (2 Hours) Instructions to candidates

### 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

### ECO 162: MICROECONOMICS INTRODUCTION TO ECONOMICS Quiz 1. ECO 162: MICROECONOMICS DEMAND Quiz 2

INTRODUCTION TO ECONOMICS Quiz 1 Answer the entire question You are required to give brief explanation for each of the questions. 1. Explain the basic economic concepts with the help of Production Possibility

### 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

### 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

### Four Market Models. 1. Perfect Competition 2. Pure Monopoly 3. Monopolistic Competition 4. Oligopoly

Four Market Models 1. Perfect Competition 2. Pure Monopoly 3. Monopolistic Competition 4. Oligopoly Perfect Competition Chapter 14 Perfect Competition Characteristics 1. Very Large Numbers Many buyers/sellers

### Midterm Exam Managerial Economics Dr. John B. Horowitz Fall 2004

Midterm Exam Managerial Economics Dr. John B. Horowitz Fall 2004 Choose the best answer: (right answers are shown by *) 1. If the price of gasoline is \$2.00 and the price elasticity of demand is 0.5, how

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

### microeconomics II first module

Lecture 2 Perfectly competitive markets Kosmas Marinakis, Ph.. Important notes 1. Homework 1 will is due on Monday 2. Practice problem set 2 is online microeconomics II first module 2013-18 Kosmas Marinakis,

### Part I: PPF, Opportunity Cost, Trading prices, Comparative and Absolute Advantage

Economics 101 Spring 2018 Homework #2 Due Thursday, February 22, 2018 Directions: The homework will be collected in a box before the lecture. Please place your name, TA name, and section number on top