ECO511 Final Exam SAMPLE SOLUTIONS (1).pdf - MAKE SURE TO SHOW YOUR WORK AND SUBMIT YOUR SCRATCH PAPER SECTION I MULTIPLE CHOICE[36 points Circle the

ECO511 Final Exam SAMPLE SOLUTIONS (1).pdf - MAKE SURE TO...

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Mediterranean School of Business August 6, 2016 Page 2/7MAKE SURE TO SHOW YOUR WORK AND SUBMIT YOUR SCRATCH PAPER! SECTION I: MULTIPLE CHOICE [36 points] Circlethe correct answer [3 points each]. 1.A profit-maximizing monopolist sets an output of 100 per day and a price of $10. Which of the following statements is true? a.The firm's MC and MR curves intersect at an output of 100, and the point on its demand curve at this output is at $10. b.The firm's MC and MR curves intersect at an output of 100, and the point on its MR curve at this output is at $10. c.The firm's MC and demand curves intersect at an output of 100, and the point on its MR curve at this output is at $10. d.The firm's MC and demand curves intersect at an output of 100, and the point on its demand curve at this output is at $10. 2.Which of the following would cause the demand curve for automobiles to shift to the left? 3.Nearly all economists agree that 4.Assume that the market for computers begins in equilibrium. Then, there is a decrease in a price of processor chips used in the production of computers. When the new equilibrium is reached 5.A large increase in oil prices, such as the ones occurring in 1973 and 1979, will cause a. inflation and expansion c. inflation and recessionb. recession and disinflation d. expansion and deflation 6.An increase in the money supply causes to rise
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