finalA_fall05 - Final Economics 304K: Principles of...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Final Economics 304K: Principles of Microeconomics Prof. Meg Ledyard Form A 3 hours Name: _____________________ UTEID: _____________________ You have 3 hours for the exam. There are a total of 100 points. You may NOT use calculators or other aids. You may leave any fractions un-simplified. Please show all of your work on the following pages. If you need more space, please use the back. Properly label all graphs. Write your Name on ALL pages. You should have 15 pages including this one. Please count them to be sure. (Page 15 is the MC answer sheet). Have a good vacation!!!!
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Name ________________________________ 2 Part 1: Multiple choice and short answer. Each question is worth 1 point. Total 27 points). Multiple Choice: Identify the letter of the choice that best completes the statement or answers the question. 1. The amount of the good buyers are willing and able to purchase is the a. demand. b. quantity supplied. c. quantity demanded. d. supply. 2. Suppose you like banana cream pie made with vanilla pudding. Assuming all other things are constant, you notice that the price of bananas is higher. How would your demand for vanilla pudding be affected by this? a. It would decrease. b. It would increase. c. It would be unaffected. d. There is insufficient information given to answer the question. 3. Suppose that scientists find evidence that proves chocolate pudding lowers cholesterol. We would expect to see a. no change in the demand for chocolate pudding. b. a decrease in the demand for chocolate pudding. c. an increase in the demand for chocolate pudding. d. a decrease in the supply of chocolate pudding. Figure 4-9 4. Refer to Figure 4-9. If the price is $25, there would be a a. surplus of 300 and price would fall. b. surplus of 200 and price would fall. c. shortage of 200 and price would rise. d. shortage of 300 and price would rise. 5. If the demand for a product increases, we would expect equilibrium price a. to increase and equilibrium quantity to decrease. b. to decrease and equilibrium quantity to increase. c. and equilibrium quantity to both increase.
Background image of page 2
Name ________________________________ 3 d. and equilibrium quantity to both decrease. 6. If the income elasticity of demand is 1.25, then the two goods would be a. complements. b. elastic. c. normal goods. d. inelastic. Figure 6-6 7. Refer to Figure 6-6. With a price ceiling present in this market, when the supply curve for gasoline shifts from S1 to S2 a. the price will increase to P3. b. a surplus will occur at the new market price of P2. c. the market price will stay at P1 due to the price ceiling. d. a shortage will occur at the price ceiling of P2. 8. Ray buys a new tractor for $118,000. He receives consumer surplus of $13,000 on his purchase. Ray's willingness to pay is
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/18/2008 for the course ECON 304K taught by Professor Ledyard during the Spring '08 term at University of Texas at Austin.

Page1 / 14

finalA_fall05 - Final Economics 304K: Principles of...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online