Midterm 1

Midterm 1 - Econ 2010:Midterm 1 Name 1.A market in...

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Econ 2010:Midterm 1 Name: 1.A market in disequilibrium would feature A) a stable price. B) consumers able to purchase all they wish at the market price. C) a stable quantity. D) either excess supply or excess demand. E) firms able to sell all they wish at the market price. 2.McDonald's is running a $0.99 Small Mac special which was initially priced at $1.50. This is likely to cause A) an increase in the demand for Small Macs. B) a decrease in the demand for Small Macs. C) a decrease in the supply of Small Macs. D) a decrease in the quantity demanded of Small Macs. E) an increase in the quantity demanded of Small Macs. 3. If the price of computers increases and the demand for monitors decreases, then A) computers and monitors are complements. B) computers are a normal good and monitors are inferior. C) computers and monitors are substitutes. D) computers are an inferior good and monitors are normal. E) none of the above is true. D 1 D 2 4.Moving from demand curve D2 to demand curve D1 could be caused by a(n) A) increase in consumers' incomes. D) increase in the price of a complement. B) increase in quantity supplied. E) increase in the size of the population. C) increase in the price of a close substitute. 5.Suppose that only demand has suddenly shifted to the left. To restore equilibrium this market will have an immediate A) excess demand, which will cause prices to rise to a new equilibrium. B) excess supply, which will cause prices to rise to a new equilibrium. C) excess demand, which will cause prices to fall to a new equilibrium. D) excess supply, will cause prices to fall to a new equilibrium. E) development of a black market. 6.Assume the demand for coffee increases while the supply decreases. Which of the following outcomes is certain to occur? A) The equilibrium price of coffee will rise. B) The equilibrium quantity of coffee will rise. C) The equilibrium price of coffee will fall.
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D) The equilibrium quantity of coffee will fall. E) Neither the equilibrium price nor the equilibrium quantity of coffee can be predicted. 7.Suppose one observes that when the price of peanut butter increases, the demand for jelly increases. One must conclude that A) peanut butter and jelly are complements. D) peanut butter and jelly are inferior goods. B) peanut butter and jelly are substitutes. E) peanut butter and jelly are superior goods. C) peanut butter and jelly are normal goods. 8.There are _____ sides in every market, sellers ______. A) 3; delivery people and buyers D) 2; and sales people B) 2; and delivery people E) 2; and buyers C) 3; sales people and buyers 9.Because population grows over time, the best indicator of average living standards is: A) the population growth rate. D) the inflation rate. B)
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This note was uploaded on 05/02/2009 for the course ECON 2010 taught by Professor Roussel during the Spring '08 term at LSU.

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Midterm 1 - Econ 2010:Midterm 1 Name 1.A market in...

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