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quiz 6 - of $600,000 Sheila runs the business herself Her...

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T HE O HIO S TATE U NIVERSITY D EPARTMENT OF E CONOMICS E CON 200N, W INTER 2008 I NSTRUCTOR : Y U Z HOU Q UIZ S IX F EB 12, 2008 P RINT Y OUR N AME __________KEY__________________________________ S OCIAL S ECURITY N UMBER (O PTIONAL ) ________________________________ S IGN Y OUR N AME __________________________________________________ I NSTRUCTIONS : Y OU HAVE 12 MINUTES TO COMPLETE THE QUIZ . T HE QUIZ TOTALS 2 POINTS . Y OU HAVE 4 MULTI - CHOICE QUESTIONS AND EACH QUESTION ACCOUNTS ONE HALF POINT . P LEASE FILL IN YOUR ANSWERS INSIDE THE TABLE AT THE BOTTOM OF THIS PAGE , AND TURN IN THIS PAGE ONLY . Y OU KEEP THE QUIZ PROBLEMS . P ICK THE BEST ANSWER FOR EACH QUESTION . Problem 1 Problem 2 Problem 3 Problem 4 A C B B 1, The figure below illustrates Sally's budget line and her preferences. Which point does she prefer to any other point. 1
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A), B B), E C), D D), C 2, The most important goal of the firm is to A), maximize its revenues. B), maximize its sales volume. C), maximize its profits. D), minimize its costs. 3, Sheila's Sports Shop is a very popular sporting goods store, which has a yearly revenue
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Unformatted text preview: of $600,000. Sheila runs the business herself. Her alternative employment options are to be a college swimming coach for $50,000 per year or a construction worker for $40,000 per year. Sheila spends $230,000 purchasing goods for resale to her customers. She also has four employees, who each earn $25,000 per year. Sheila owns the building that her Sports Shop is housed in-she remodeled a house that she owns and that she could have rented out for $20,000 per year instead. Sheila's economic profit is equal to A), $160,000 per year. B), $200,000 per year. C), $250,000 per year. D), $270,000 per year. 4, The air travel market, which is dominated by a few large firms, is an example of A), a monopoly market. B), an oligopolistic market. C), a perfectly competitive market. D), a monopolistically competitive market. THE END 2...
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