Prelim_1__A_SOLUTION__F06 - Name: SOLUTION_ Friday Section...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Name: SOLUTION_ Friday Section # ____ Date: _________________ Signature: _____________________________ INSTRUCTIONS: 1) There are THREE sections in this exam. 2) ANSWER ALL QUESTIONS. TOTAL POINTS = 100 3) Part 1: 15 multiple choice questions (2 points each) Part 2: 2 short essay questions (20 points each) Part 3: 1 problem (30 points) 4) Read all questions carefully. 5) Write legibly and remember to label all graphs . 6) Total time = 75 minutes. Good luck! - 1 - PRELIM #1/A HAdm 141 Microeconomics of the Service Industry Fall ‘06
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
GRADE - 2 -
Background image of page 2
Part 1: (30 points) Multiple Choice. Do the following 15 multiple choice questions. Read each question carefully and CIRCLE the best answer. It often helps to jot down a quick graph or do some work on the question before searching for the answer. 1. Microeconomics is the branch of economics that deals with a. highly aggregated markets or the entire economy. b. the production side of the economy. c. the buying side of the economy. d. human behavior and choices as they relate to relatively small units – an individual, a firm, an industry. 2. Economists use the ceteris paribus assumption in order to a. make their analyses easier for them to conduct. b. designate what they believe is the correct relationship between two variables. c. explain why people sometimes consume more of a good when its price rises. d. explain why those things that come first do not necessarily cause those things that come later. e. designate the difference between normative and positive economics. 3. The usefulness of a theory is determined by a. the realism of its hypothesis. b. the realism of its assumptions. c. the realism of its variables. d. how well it predicts. e. all of the above. 4. “If you hadn’t gone to dinner with your friends, you would have stayed home and “surfed” the Internet.” It follows that a. surfing the Internet is the opportunity cost of having dinner with your friends. b. having dinner with your friends is the opportunity cost of surfing the Internet. c. the price of having dinner with your friends is more than the price you would have had to pay to surf the Internet. d. the opportunity cost of having dinner with your friends is lower than the opportunity cost of surfing the internet. e. it is less costly to surf the Internet than to have dinner with your friends. 5. If the maximum price a person willing and able to pay for a good is $50, and consumers’ surplus is $10, then it follows that the price the buyer paid for the good is a. $10. b. $60. c. $50. d. $40. e. There is not enough information to answer the question. - 3 -
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6. Which of the following is an illustration of the law of increasing opportunity costs? a.
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/31/2008 for the course H ADM 141 taught by Professor Wcarroll during the Fall '07 term at Cornell University (Engineering School).

Page1 / 16

Prelim_1__A_SOLUTION__F06 - Name: SOLUTION_ Friday Section...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online