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Sample_Test_2 - hflCROECONOMICS - ECON 103 - Name # w...

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Unformatted text preview: hflCROECONOMICS - ECON 103 - Name # w George Mason University - Fairfax Campus Last Name, First Name Not Student ID 2nd Interim Exam —- Fa112008— Section 003 - 7:30 to 8:45 AM, Tues. 6: Thom - Instructor E.C. H01! 21 October 2008, Chapters 6 thru 9‘ Whm finished, please Sign pledge below and turn in both this heel and your Senna-on. HONOR PLEEXSE; [have neither given nor received aide on this exam. Signed: (Student's Signature) MULTIPLE CHOICE Clmose the one alternative that best completes the statement or answers the question. apartments supplied (per month) 1) The above table gives the demand schedule and the supply schedule for housing in Anytown, 1) USA. Ifa price ceiling of $600 was imposed in the housing market, then A) there would be a shortage of apartments. 3) there would be a surplus of apaxunenm C) the market would readi equilibrium at the quantity of 60 housing units. D) the supply of housing would increase. 2) A rentceiling create-s a shortage. As a result, which ofthe following occurs? 2) A) a loss ofboth WEI and producer surplus B) a gain of both comumer and producer surplus C) only a loss of consumer surplus for tenants D) only a loss of producer mrplu-n for landlords 3) The initial effect of a labor saving invention, such as automatic teller machines in the banking 3) industry, is a A) leftward shift of the supply om-venflabot. B) leftward shift of the demand curve for labor‘ C) rightward shift of the supply curve of labor D) rightward shift of the demand ourVe for labor. 4) An example of a price floor is a 4) A) minimum wage. B) subsidy. C) rent control. D) quota. 1 3-D! SSSBESSEDL HHS] HdBSil 5002 83 U9? 5) The sellers pay the entire sales tax levied on a good when demand is perfectly or supply 5) is perfectly A) inelastic; inelastic B) elastic; inelastic C] inelastic; elasfic D) elastic; elastic U1 Price (dollar! per gallon} a O l 2 3 A 5 6 Qucnfily (thousands oi gallons! - ind-a137,”?mime-{Ir=Emd£zec1ir5uw flamm- 6) The above figure ahowa the market for anti—freeze. The government imposes the sales tax shown in 6) the figure on sellers. What is the amount of the tax? A)$2pergallon B)$4pergallon Q$3pergallon D)$1p.ergallon 7) The above figure shows the market for anti-freeze. The government imposes the sales lax shown in ‘7) the figule on sellers, How much tax reVenue does the govemment raise from this tax? Amman mm mm » D)$-6,000 8) lake plans to spend $100 on fried chickens and Pepsi. The price of a fried chicken is$5 and Pepsi is 8) $2 per bottle. IfIake buys 10 fried chickens how many bottles of Pepsi can he buy? A) 75 B) 50 - C) 10 D) 25 9) Larry spends all 11135300 monthly income on pizza and gasoline. The price o-fpizza is $4 a slice, 9) and the pflce of gasoline is $2 per gallon. The relative price of gasoline is A) $2 per gallon. B) 0.5 gallons pEI'BHCE of pizza. C) 0.5 slices of pizza per gallon D) 2 slices of pizza per gallon. 10) The total benefit that a person gets from the consumption of goods and services is called 10) A) opportunity cost. B) utility. C) marginal cost. D) total utility. 2 S S S 5 E.‘ 8 S B D d. nus Hd89=t some 82 U9? 11) Marginal utility is the 11) A) usefiflmss of a product. B) utility that a person receives from the commmption of goods and services. C} change in utility that results from a one—unit change in the price of a good consumed. D} change in utility that results Emma Mme—unit Chang? in. the quantity ofa good conmmd. 12) As Sally increases her emsumption of a good, she experiences dinfirfishing marginal utilityit her 12) total utility A) E) at a decreasing rate. C) increases at a constant rate. D) increases at an increasing rate. 13) Iulie's total utility from dteeseburgers is given in the table above: What is the mgmal utility of the 13) third chmselmrger? A) 14 B) 35 c3 20 D) 28.7 14) The table above shows the total utility fmm the two goods Freddy likes to cmsume. If Fmddy has 14} consumed 4 fruit drinks and then decides to drink another, A) his total utility will increase. 8) the marginal utility from theSth dn'nk equalsafl. C) the marginal utility from the 5th drinks equgis 50. D) Both answers A and B are correct. '53 'd SSSSEEBEOL HHS} 1-114an Rnn: :2: mar 15) Total utility is maximized when a mmmnerhas spent all of his 01' her income and 15) A) spent equal ammnts on all B) the total utility per dollar spent is equal for all goods. C) the marginal utility per dollar spent is equal for all goods. D\)m.].g,is,.] 16} Robinsonspemlsalll'fisincome on mangos andbamunas. Manges cost$3 perpound and bananas 16) cost $1 per pound. The marginal utility is 30 for the last pound of mango-3 purchased and 10 for the last pound of bananas To maximize his utility, Robinson should buy A) more banmmsand fewer mangos. B) the presimt combination of goods. C) onlymangoa D)morenm1gosandfewathananas. 17) Robinson spends all his income on mangos and banana; Manges cost $3 per pound and bananas 17) cost $1 per pound. The marginal utility is 24 for the last pound of mungos purchased and 10 for the last pound of bananas. To maximize his utility, Robinsm't should buy A) the present combination of goods. B) may mangos. C) more bananas and flower mangoo. D) more mangos and fewer bananaa 18) Thewater and diamonds paradox of value results from 16} A) the concept of deadweight long. B} the elasticity of demand. C) the “law of demand.” D) marginal utility, 19) In order to draw an individual's budget line, We must know 19) A) prices and income. B) prices and preferences C) plies, income, and preference; D) inmme and preferences. 20) Iunkfood fill spmds all of her income on jellybeans and Jolt cola. Suppose that Jill’s income is $30, 20) the price of a bag ofjeflytnans isSfi, and the price of a bottle of Jolt cola is $1 Which of the following combinatiom ofjellybemis and Iolt cola lies inside ofjill's budget line? A) 2 bags of folly/beans and 8 bottles of Jolt B) 4 bags of jellybeans and 4bottles ofJolt C) 5 bags of fought-ans and 0 bottles of ID]! D) 3 bags ofjellybeans and 6bottles ofjolt 21") Waldo buys only two items, pretzels and ham sandwiches, Waldo has $24 in income, pmtzels cost 21) $0.60 perhag and ham sandwiches cost $2.40 each. Which of the following statements is truofor the information given above? A)The mlafiveprlce ofahamsandwich in termsofpmtzelsis 4bags ofprvetzels perhm sandwich. ' B) Waldo's real income expremed in terms of ham sandwiches is 10 ham sandwiches. C) Waldo's real outcome expmd in terms of pretzels is 40 bags of pretzels. D)A11 ofthe above answersaie correct 'ol SSSSE‘SBE‘DL HHS Hd53=1 8002 BE UEC Tux-h?! IIIt!“|-fi-li-I'fiI1i?”1lmmmflmmflflmfliflflmmm\fi 1" '1' '-'. 1 P0 in Cookies {number per Week] K) o 16 8 A . I 0 2 4 6 8 10 1 2 Magazines (number per week) 22) Lizzie‘s budget line is shown in the figure abOVe. If the price of a magazine falls, the budget line 22) A) becomes flatter. B) shifts leftward and its slope does not change. C) becoma steeper. D) slfifle rightward and itsslopedoes not change. 2‘3) An indifference mrve is a line that shows combinations of goods among which a consumer 23) A) needs equally. B) does mt care which combination he or she reoeivee C) has readily available D} can afford. 24) The marginal rate of substitution is 24) A) the rate at which lie-2mm: will give up one good to get an additional unit of another good while remaining on the 5am indifference curve. B) the rate at which a consumer will exchange a good for income holding prices constant. C) the rateat wbidlufililyinaeasesas the Wmaeasespumlusesofagood, holding purchases of theother good constant. D) None of the above answers is correct. 25) Lfloshua consumes only tacos and Mt Dew, Joshua will be at his best affordable point if 25) A) the marglnal rate of mbstitution between ML Dew and laws is equal to the relative price of Mt. Dew and tacos. B) Joshuais on. his budget line. C) Joshua is on lfishighest attainable indifference curve. D) Allofflmabmanswersareoonect ‘d BBSBEBSBDC HHS HdBS=l 8003 83 U9? niacmmmmnmmmmmwwmmmmmwmr u «rem-2mm :37 40 i E 32 j 3 ‘E 24 8 D 0 16 I 8 Z . . . . 0 4 8 1 2 1 6 2G 24 CoHee (pounds per waek} -: 26) The abcwe figure shows Sam‘s budget line and one of his indifference What combinafion of 26) coffiee and gasoline will Sam select? A) Combination 17 because it is on his budget line and on the highest attainable indifference CIJIVE. B) Combinationan ihatmntainsallthe gasofineheneedsandsfiflhasmmecoffiee, C)Combi1mfimcbmuaeflmtcontamsafldmm$eeheneedsandsomegamfim D) none oithe above fi'd ssssssseo¢ HHS HdGS‘I 5003 BE UEC fi.‘h-.-::'.'!hrl I’wwW1WWRWMWWKLMMMWWWJ.11);:Hi]? Mavis: (per month} o C D Books {per month] ‘gmflf‘m 27) Consider the change in the price of a book depicted in the above figum. The original budget line is 27) BC. The new budget line is BD. As a result of this price change, the substitution effect am he represented by a. movement from A) point A to point G. B) point F to point C. onfitAmpohitE. DipointAlopointF. 28) Consider the change in the price of a book depicted in the above figure. The original budget line is 25) BC. The new budget Hm is 313. As a read! of this price change, the income effect am he represented by a movement from A) point A to point F‘ B) point G to point P. ijointEmpoimF'. D)pointhopointA. 29) Firms use incentives to pursue their most fundamental goal, which is to maximize 29) A) worker pay. B) worker satisfaction. C) profits. D} sates mvmue. 30) Opportunity costs include 30) A) implicit costs but not explicit oasis. B) explicit mots but not implicit costs, C) both implicit costs and explicit costs. D) neither explicit costs not implicit mats. 31) Sue om abaldng company. The company's total menue for a month is $4000. The explicit 31) monthly costs are $2000 and implicit monthly costs an: $1000. Sue’s economic profit for the month is equal to A) $2000. B) $4000. C) $1000. D) 53000. 'd BESS-95880.1. HHS {468831 8002 8?. UE‘C 32) Technological efficienry occurs when the firm produces a given output 32) A) by using the maximum amount of inputs- B) at the least cost. C) by using the least amount of inputs. D) at the greatest cost. 33) An advantage of the corporate form of organization is that 33] A) owners have individual unlimited liability- B) creditors have unlimited liability. C) owners have limited liability. D) owners have joint unlimited liability. 34) account for the largest portion of all firms; __ account for most- of the total revanue 34) received by businesses. A) Partnerships; corporations B) Corporations; proprietor-slips C) partnerships D) Pmptietorslfips; mtporatiuns 35) Monopolistic competition and monopoly are market types in that finrts in . 35) A) similar; both market types have many mpetitors B) different; monopoly are protected by barriers to entry C) differs-em; mopolisiic mmpetih'on have only a few competitors D) similar; both market types have products that are identical to those of their competitors 36) The above table shows: the market shares for all the iandsca ping senfices in a suburisan area. The 36) Mfirm catwalk-alien ratio equals A) 30 percent. B) 100 percent. C) 65 percent D} 60 Ferment. 'al SBSSBEBEDL HHS) HdSSil 8002 BE UE’C 37) The Herflndahl—Hirschman index is definitely larger in a market than in a 37) market A) monsapolisl-Ec competitive: Inc-101301)" B) perfectly competitive; monopon C) monopoly; perfectly ampefifive D) perfectly competitive; monopolistic oompefifive 38) Economies of scale exist when the a unit of a good ___fi_ 38) A) price; rises as its output rate increases B) average cust of pnyducmg; rises as its input rate max-gases C) price; falls 33515 input rate detream-s D} average cost of producing; fails as its output rate increases '0! SBSBESSEDL HHS HHafioI 5008 DE “3? Answer Key 'Tesmame: 2ND 'I'ES'I' MICRO FALL 08 CH6—9 1) C 2) A 3) B 4) A 5) B 6) C 7) A a) D 9) C 10) D 11) D 12) B 13) C 14) D 1.5) C 16) B 17’) C 13) D 19) A 20) A 2:1) D 22) A 23) B 24) A 25) D 25) A 27) C 28) C 29) C 30) c 31) C 32) C 33) C :54) D 35) B 36) C 37) C 33) D 10 DI'd SBSBBBBBDL HHS HdDD‘E 8003 88 “EC ...
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This note was uploaded on 04/29/2009 for the course ECON 103 taught by Professor Holt during the Spring '08 term at George Mason.

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Sample_Test_2 - hflCROECONOMICS - ECON 103 - Name # w...

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