Final+version+B

Final+version+B - Name: _ Class: _ Date: _ ID: B Econ 20A -...

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Name: ________________________ Class: ___________________ Date: __________ ID: B 1 Econ 20A - Final Exam - Summer 2007 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Which of the following best describes the economy's stock of equipment and structures? a. capital b. aggregate demand c. long-term inventory d. aggregate stock ____ 2. Workers who work the night shift are often paid more than those who do identical work on the day shift. This is referred to as a a. discriminatory wage practice. b. compensating differential. c. wage inequity. d. a market inefficiency. Scenario 16-3 Consider two countries, Eudora and Inhabii, that are engaged in an arms race. Each country must decide whether to build new weapons or to disarm existing weapons. Each country prefers to have more arms than the other because a large arsenal gives it more influence in world affairs. But each country also prefers to live in a world safe from the other country's weapons. The following table shows the possible outcomes for each decision combination. The numbers in each cell represent the country’s ranking of the outcome. Inhabii Build new weapons Disarm existing weapons Eudora Build new weapons Eudora: 2 Inhabii: 2 Eudora: 4 Inhabii: 1 Disarm existing weapons Eudora: 1 Inhabii: 4 Eudora: 3 Inhabii: 3 ____ 3. Refer to Scenario 16-3 . Which of these statements is correct? (i) Eudora is better off building new weapons if Inhabii builds new weapons. (ii) Eudora is better off building new weapons if Inhabii disarms existing weapons. (iii) Building new weapons is Eudora's dominant strategy. a. (i) and (ii) b. (ii) and (iii) c. (i) and (iii) d. (i), (ii), and (iii) ____ 4. In comparison to the average poverty rate, a. children and the elderly are more likely to be poor. b. Children and the elderly are less likely to be poor. c. Children are more likely to be poor, but the elderly are less likely to be poor. d. Children are less likely to be poor, but the elderly are more likely to be poor.
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Name: ________________________ ID: B 2 Figure 15-7 The figure below depicts the demand, marginal revenue, and marginal cost curves of a profit-maximizing monopolist. ____ 5. Refer to Figure 15-7 . If the monopoly firm perfectly price discriminates, then the deadweight loss amounts to a. $0. b. $100. c. $200. d. $500. Scenario 15-2 A monopoly firm maximizes its profit by producing Q = 500 units of output. At that level of output, its marginal revenue is $30, its average revenue is $60, and its average total cost is $34. ____ 6. Refer to Scenario 15-2 . The firm's profit-maximizing price is a. $30. b. between $30 and $34. c. between $34 and $60. d. $60. ____ 7. The Wheeler Wheat Farm sells wheat to a grain broker in Seattle, Washington. Since the market for wheat is generally considered to be competitive, the Wheeler Wheat Farm maximizes its profit by choosing a. to produce the quantity at which average variable cost is minimized.
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This note was uploaded on 02/02/2009 for the course ECON 62140 taught by Professor Ouyang during the Spring '08 term at UC Irvine.

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Final+version+B - Name: _ Class: _ Date: _ ID: B Econ 20A -...

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