Econ 211 final exam v1 answers

Econ 211 final exam v1 answers - Econ 211 Section 8 Spring...

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Econ 211 Section 8 Page 1 of 15 Spring 2006 Patrick McLaughlin VERSION 1 Final Exam: Choose the correct answer to each question and fill in the corresponding bubble on your answer sheet. There is only one answer to each question. There are 50 questions total; you have until 9:30 PM to finish. On the answer sheet, for Section, bubble in which version of the test you have. I.e. if you have Version 1, you should mark down section 1 on your bubble sheet. Failure to do this will result in a deduction of 5 points from your exam grade. Good luck. 1. If you are currently answering questions at a speed such that the marginal benefits of speed are equal to the marginal costs of speed, then a. You should speed up, because otherwise you might run out of time b. You should slow down because otherwise you might get tired before the end of the exam c. No other speed will yield higher net benefits d. You should go faster because you have nothing to lose by doing so e. Both (b) and (d) are correct 2. Ceteris paribus, an decrease in the your income will cause a. Demand for a normal good to fall b. Demand for a normal good to rise c. Demand for an inferior good to rise d. The price of a good to rise e. Both a. and c. are correct 3. The law of demand tells us that a. the lower the price of a good, the lower will be the demand for that good. b. the higher the price of a good, the lower will be the quantity demanded of that good. c. the lower the price of a good, the higher will be the quantity demanded of that good. d. both b. and c. e. none of the above 4. The area under an individual consumer’s demand curve, from Q = 0 to Q = Q* = the last unit being consumed, measures a. marginal cost of the last unit being consumed b. marginal benefit of the last unit being consumed c. total cost of consuming Q* units d. total benefits of consuming Q* units e. net benefits of consuming Q* units
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Econ 211 Section 8 Page 2 of 15 Spring 2006 Patrick McLaughlin Questions 5 - 8 are based on the following information. Every Thanksgiving, I drive halfway across the country to visit my family. When I do so, I must choose the average speed at which I drive; the table below shows the marginal benefits and marginal costs of driving at various speeds. All benefits and costs are measured in dollars, for convenience, but all of the relevant costs and benefits are taken into account. Also, for convenience in computing, assume average speeds come only in 10-mile-per-hour (mph) increments; thus, I can average 50 mph or 60 mph, but not 57 mph. Average speed (mph) Marginal benefits Marginal costs 10 $1000 $ 50 20 950 150 30 900 250 40 850 350 50 800 450 60 750 550 70 700 650 80 650 750 90 600 850 5. Given the information in the table above, what are the total costs of my trip if I average 30 mph? a.
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Econ 211 final exam v1 answers - Econ 211 Section 8 Spring...

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