Eco5937-MidTerm-MC-Section4-fall01-sol.pdf

Eco5937-MidTerm-MC-Section4-fall01-sol.pdf

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

View Full Document Right Arrow Icon
Name: _____________________________ Student id: ____________________ College of Business Administration Department of Economics Economic Foundations for MBA ECO 5937 – Section (4) O. Mikhail Fall 2001 Mid-Term Exam This closed book exam is worth 100 points. The exam totals 41 multiple-choice questions and 2 short essay questions. For the multiple-choice part: Only your first 30 correct answers will count . Each correct multiple-choice answer is worth 2.7 points. For the short-essay part: The 2 questions are worth 20 points . Each short-essay question is worth 10 points. Allocate your time accordingly. Answer all the short essay questions in the given space below each question. Including the cover page, the exam totals 15 pages. Answer the multiple-choice questions on the computer sheet. DO NOT forget to write your name and your student id on both : the computer sheet and the exam booklet. Non-Programmable calculators and language dictionaries are allowed. At the end of the exam, hand-in the exam booklet and the computer sheet to the examiner. 6:15 p.m. – 8:15 p.m. CL1 - 122 September 20, 2001
Image of page 1

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

View Full Document Right Arrow Icon
MULTIPLE-CHOICE: (80 points) 1. Which of the following could not be a short-run decision? a) hours a store should stay open b) number of workers to hire c) how many warehouses to build d) the amount of inventory to stock e) all of the above 2. Consumer surplus of an individual can be eliminated entirely by: 1. raising the price until very few units are bought. 2. charging a price for each unit that is equal to the individual's marginal value for each unit. 3. raising the price until zero units are purchased. a) 1 only b) 3 only c) 2 and 3 only d) 2 only 3. The consumer surplus of the last unit of a good purchased is a) unknown. b) non-negative. c) negative. d) zero. e) positive. 4. Which of the following pairs of goods are likely to be substitutes for a large group of consumers? a) coffee and cream b) eggs and toast c) green beans and peas d) pancakes and syrup. e) wieners and buns 2
Image of page 2
5. If the average-product curve is rising, then the marginal-product curve a) b) must lie below the average-product curve over this range. must lie above the average-product curve over this range and must also be rising. c) must lie above the average-product curve over this range. d) must be falling. e) can be either above or below the average-product curve, although it must be rising over the entire range. 6. The distance between the total cost curve and the total variable cost curve is a) marginal cost. b) average fixed cost. c) total fixed cost. d) average total cost. e) none of the above. 7. If the total revenue of producers rises for an initial cut in the price of their product but falls for further reductions in price, the price elasticity of demand for the product a) rises and then falls. b) declines as price falls. c) rises as price falls.
Image of page 3

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

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

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern