MBAC6010-midterm1-key-021808

MBAC6010-midterm1-key-021808 - The University of Colorado...

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1 The University of Colorado Leeds School of Business MBAC6010: Managerial Economics Midterm I Monday, February 18, 2008 NAME_________________________________________________ Multiple Choice (4 points for each question): 1. Which of the following could lead the production possibilities frontier to shift inward? a. an increase in productive resources b. a better educated labor force c. the discovery of new sources of raw materials d. an earthquake that destroys several major factories 2. When the marginal cost of producing a bike is greater than the marginal benefit of the bike, for resource use to be efficient a. more bikes should be produced. c. no more and no fewer bikes should be produced. b. fewer bikes should be produced. d. None of the above answers is correct. 3. The benefit someone gets from consuming one more glass of lemonade is known as the a. net benefit. b. incremental benefit. c. marginal cost. d. marginal benefit. 4. Your college requires that starting this year, every business student must bring a laptop to school. This requirement a. increases the quantity demanded of laptops. b. increases the demand for laptops. c. increases the supply of laptops. d. decreases the quantity demanded of laptops. 5. Demand curves slope ____ because as the price increases and other things remain the same, the quantity demanded ____. a. downward; decreases b. downward; increases c. upward; decreases d. upward; increases 6. Two brands of water, Natural Spring Water and Mountain Spring Water, are close substitutes. If the price of Mountain Spring Water decreases, the fall in price a. shifts the demand curve for Natural Spring Water rightward. b. shifts the demand curve for Natural Spring Water leftward c. increases the price of Natural Spring Water. d. increases the demand for Mountain Spring Water. 7. Autoworkers negotiate a wage increase. How does this change affect the supply curve of cars? a. It shifts the supply curve leftward. b. It shifts the supply curve rightward. c. It does not shift the supply curve. d. There is not enough information to tell if the change shifts the supply curve rightward, leftward, or not at all.
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MBAC6010-midterm1-key-021808 - The University of Colorado...

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