Student name: JEREZ AMSYAR BIN JISRAY Course Name: Principles of Microeconomics Course Number: ECON 210 Semester: October 6 – December 5, 2014 Exam Due date: 29/11/2014, Saturday 7.00pm _____________________________________________________________________ Total Marks Achievable: 100 INSTRUCTIONS TO STUDENTS: 1. This is a take-home OPEN BOOK exam but your work must be completely your own. You must not copy from you classmates or from the internet or book. 2. You must make your own properly labelled graphs and diagrams. You can either make the diagrams in WORD, PAINT or other software. You may even draw the diagrams by hand and insert in the document if you find that easier. If you decide on writing/drawing by hand please ensure that your work is neat and legible 3. Please make sure that your name and student number is listed on the front and back page. 4. Please submit the completed exam via the assignment link on blackboard. 5. This exam has 3 sections : a. SECTION (A) contains 5 multiple choice questions – ANSWER ALL b. SECTION (B) contains 4 short answer questions – ANSWER ANY 2. Please answer all sub-parts for the question that you choose c. SECTION (C) contains 5 essay/long answer type questions – ANSWER ANY 3 QUESTIONS Make sure you put the number of the question beside your answer. 1
ECON 210 Microeconomics Final Exam Due Date – No later than 7pm on Saturday 29 th Nov 2014 Maximum Points – 100 Section I - Multiple Choice (5 questions - 4 marks each). Enter your choice in the box ( ) to the right of each question 1 With a constant opportunity cost between goods A and B, the PPF (production possibilities frontier) would a. be a straight line. (ANSWER) b. be a bowed-outward line. c. be a bowed-inward line. d. not exist. 2 If Max's demand for hot dogs falls as his income rises, then for Max hot dogs are a. a bad good. b. an inferior good. (ANSWER) c. a preferential good. d. a normal good. e. a neutral good. 3 A perfectly competitive firm faces a __________ demand curve. a. Nonlinear b. downward-sloping (ANSWER) c. perfectly elastic d. perfectly inelastic e. unit-elastic 4 There are few sellers and many buyers in the a. perfectly competitive market structure. b. monopolistic competitive market structure. c. oligopoly market structure. (ANSWER) d. monopoly market structure. 2
Elasticity (E) Price (P) Demand (Q) Total Revenue (P x Q) E > 1 E < 1 (small drop) (Great increase) E = 0 (stays the same) 5 If inputs are increased by 10 percent and output increases by 20 percent, then __________ are said to exist.