Practice MT1_F12_(actual Fall-11)

Practice MT1_F12_(actual Fall-11) - MICRO Midterm 1 Econ...

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MICRO Midterm 1 Econ 1011 FALL 2011 MICRO Midterm 1 Econ 1011(001 & 002), Fall 2011 Instructor: Dr. Sudeshna C. Bandyopadhyay Date: 10/11/11 Time: 1½ hours Last Name: _____________________________ First Name: ___________________________ Student I.D. Number: _____________________ ECON 1011 Section Number: ____________ Section A: Multiple Choice, 30 Questions. For each question, fill in the appropriate bubble on your Scantron sheet. Each question is worth 1.9 points. Total Section A points = 57% (2% extra credit) 1. Anna earns minimum wage ($7.50 per hour) and Brad has a full time job earning $30 per hour. They both go to watch a movie and pay $8 each for the ticket. Which of the following statements must be true? A. Anna’s total cost of watching the movie is the same as Brad’s – it is $8.B. Anna’s total cost of watching the movie is higher because she earns less than Brad every hour.C. Brad has a higher total cost watching the movie because he earns more than Anna every hour.D. Anna and Brad have the same opportunity cost of spending time on leisure activities.E. All of the above are true. 2. Jack has a ticket for a concert for which he paid $30 yesterday. When he arrives at the concert, 5 different people offer him $70 for his ticket. The opportunity cost to Jack of attending the concert today is: 3. What is the opportunity cost of living in a house that you already own? 4. If the buyer’s reservation price for a good rises, Macrotel engineers proposed developing a 2 Gigahertz microprocessor in early 1999 at a cost of $20 million for a working prototype. By mid-2009, the $20 million had been spent but a prototype had not yet been developed. So Macrotel engineers requested an additional $8 million in September 2009 to finish the project. For convenience, assume that the marginal cost of producing the chip, once it is developed, is zero. 1
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MICRO Midterm 1 Econ 1011 FALL 2011
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