U 4
4 nit s of AGEC 105 Unit s of1PowerD 12 6 8 CE A 0 Bonment al Qualit y E nvir 3 Fall 2010
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Quiz 2
1
Name: __________________________________
Choose the single best answer for each question. Each question is worth 2.5 points. 1. Which of the following sets of goods are most likely to be complementary goods? a. shoes and pizza b. automobiles and computers c. baseballs and baseball gloves d. football tickets and baseball tickets e. Dell and Gateway computers 2. An increase in the price of a good results in a(n) a. decrease in demand b. increase in demand c. increase in quantity demanded d. decrease in quantity demanded e. increase in supply
Price per DVD Quantity
of DVDs 3. Suppose that the market for DVDs is initially at point A on demand curve D2 in figure above. If there is a decrease in the price of DVDs, a. the demand curve will shift to D1 b. equilibrium will move to point B on demand curve D2 c. equilibrium will move to point C on demand curve D2 d. there will be no change from point A e. the demand curve will shift to D3
Quantity of Hamburgers 1 2 3 4 5
Marginal Utility per Hamburger 30 25 20 15 10
Quantity of Frozen Pizzas 1 2 3 4 5
Marginal Utility per Pizza 18 16 14 12 10
4. Above figure shows the marginal utilities Kate receives from buying hamburgers and frozen pizzas, assuming she buys only these two goods. Each hamburger sells for $5 and each pizza sells for $4. What is her marginal utility per dollar spent on the fourth hamburger? a. 15 b. 4 c. 3 d. 20 e. 12
5. In this graph 5 units of environmental quality and 4 units of power offer the same level satisfaction of as 5 units of environmental quality and 8 units of power. a. True b. False.
6. Steve is planning to divide his study time between English and calculus. It will take him two hours of study for each extra point in calculus and one hour of study to raise his English score by one point. He should allocate his time so that a. the marginal utility of an hour spent studying calculus is twice the marginal utility of an hour spent studying English b. the marginal utility of an hour spent studying English is twice the marginal utility of an hour spent studying calculus c. the marginal utility per hour spent studying calculus equals the marginal utility per hour spent on English d. he spends twice as much time on calculus as on English e. he spends twice as much time on English as on calculus
7. A family on a trip budgets $800 for sit-down restaurant meals and fast food. The family can buy 16 restaurant meals if they don't buy any fast food. What is the price of a restaurant meal for the family? a. $5 b. $16 c. $20 d. $50 e. it is impossible to tell from the information given
8. Which panel in figure above shows the effect of a decrease in the price of apples, other things constant? a. panel a b. panel b c. panel c d. panel d e. panel e
Price $30
$10 $8
100.
120
Quantity
9. If the market price is $10, then what is consumer surplus? a. 500 b. 1000 c. 1500 d. 100 e. 2000
10. Sign and date: On my honor, as an Aggie, I have neither given nor received unauthorized aid on this academic work. _________________________________ Signature __________________________________ Date