final-sample - Economics 304K SAMPLE FINAL EXAM Helen...

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Economics 304K SAMPLE FINAL EXAM Helen Schneider Spring 2007 Student Name: ______________________________________________________ INSTRUCTIONS 1. There are three sections in this exam. 2. ANSWER ALL QUESTIONS. TOTAL POINTS = 100 3. Part I: 50 multiple choice questions (1 point each) Part II: 3 true/false questions (5 points each) Part III: 1 problem (35 points) 4. Read all questions carefully. 5. Write legibly and remember to LABEL ALL GRAPHS . 6. Total time = 3 hours. GOOD LUCK
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Part I. Multiple choice . Do the following 50 multiple choice questions: Read each question carefully and CIRCLE the best answer. THERE IS ONLY ONE ANSWER TO EACH QUESTION. It often helps to jot down a quick graph or do some work next to the question before searching for the answer. 1. Which of the following changes would not shift the demand curve for a good or service? a. a change in income b.a change in the price of the good or service c. a change in expectations about the future price of the good or service d.a change in the price of a related good or service 2. Suppose you are in charge of setting prices at a local sandwich shop. The business needs to increase its total revenue and your job is on the line. If the demand for sandwiches is elastic, you a. should increase the price of sandwiches. b.should decrease the price of sandwiches. c. should not change the price of sandwiches. d.could not determine what to do with price until you determine whether supply is elastic or inelastic. 3. Holding all other forces constant, when the price of gasoline rises, the number of gallons of gasoline demanded would fall substantially over a ten-year period because a. buyers tend to be much less sensitive to a change in price when given more time to react. b.buyers tend to be much more sensitive to a change in price when given more time to react. c. buyers will have substantially more income over a ten-year period. d.the quantity supplied of gasoline increases very little in response to an increase in the price of gasoline. 4. A key determinant of the price elasticity of supply is a. the ability of sellers to change the price of the good they produce. b.the ability of sellers to change the amount of the good they produce. c. how responsive buyers are to changes in sellers' prices. d.the slope of the demand curve. 5. Which of the following characterizations is correct? a. Rent control and the minimum wage are both examples of price ceilings. b.Rent control is an example of a price ceiling and the minimum wage is an example of a price floor. c. Rent control is an example of a price floor and the minimum wage is an example of a price ceiling. d.Rent control and the minimum wage are both examples of price floors. 6. When a tax is placed on the sellers of a product, the
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final-sample - Economics 304K SAMPLE FINAL EXAM Helen...

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