Midterm 1 Practice-Econ310

Midterm 1 Practice-Econ310 - Economics 310, Section 1...

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Economics 310, Section 1 Summer 2007 Midterm 1 Name______________________ The following exam consists of 45 questions on 5 pages. Please check to see that you have all parts of the exam before beginning. The exam is worth 100 points. You have 90 minutes to complete the exam. Time may be a factor, so do not get stuck on any question. Only the answer in the designated area will be counted, include your scrap work with your name clearly written on it. Non-programmable calculators are permitted. Good Luck. A. 20 points. Multiple Choice: (2 points each) 1. Assume that the demand curve for apples is downward-sloping and the supply curve for apples is upward-sloping. If the government imposes a sales tax of 10¢ per apple, then the price that suppliers receive for an apple a. remains unchanged. b. Falls by less than 10¢ per apple. c. Falls by exactly 10¢ per apple. d. Falls by more than 10¢ per apple. 2. Suppose that the due to technological innovations, the absolute price of a recordable CD declines by 25% while the absolute price of a recordable cassette tape declines by 10%. In this situation, the price of the CD relative to the price of a tape a. Falls. b. Rises. c. remains the same. d. changes unpredictably. 3. A man can rewire a hours in 12 hours and can panel a room in 15 hours. His teenage son can rewire a house in 18 hours and can panel a room in 16 hours. Who is more efficient in rewiring a house and who is more efficient in paneling a room? a. The father is more efficient at both activities. b. The father is more efficient at rewiring a house, and the son is more efficient at paneling a room. c. The father is more efficient at paneling a room, and the son is more efficient at rewiring a house. d. The two are equally efficient at both activities. 4. Suppose a consumer buy goods X and Y and is currently spending all of her income on some of both goods. If the marginal value of X is greater than the relative price of X, how can the consumer improve her level of satisfaction? a. By purchasing more of both goods. b.
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Midterm 1 Practice-Econ310 - Economics 310, Section 1...

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