VERSION 1 1 M I M E 3 1 0 E N G I N E E R I N G E C O N O M YE C O N O M Y Class Test #1 – Wednesday, 14 February, 2007 – 90 minutesPRINT your family name / initial and record your student ID number in the spaces provided below. FAMILY NAME / INITIAL STUDENT ID # This test consists of 21 multipleThis test consists of 21 multiple-choicechoice questions and two problems requiquestions and two problems requiring a ing a full solution. full solution. There are no penalties for incorrect answers in the multiple-choice section. The problems are worth a total of 22 points. MULTIPLE-CHOICE QUESTIONS Circle the correct answers on this test paper and record them on the computer answer sheet. Questions 1 to 6 are worth 3 points each for a total of 18. 1. If the price of TVs were to increase, which one of the following effects would occur? A) The supply curve for TVs will not be affected, but the quantity of cable services sup-plied would increase, thus causing a price decline in this service. B) The supply curve for TV cable services will move to the left, causing a price decline in this service. C) The demand curve for TVs will not be affected, but the demand curve for cable ser-vices would shift to the left. D) The demand curve for TV cable services would shift to the right. 2. Cash outflows for payment of preferred dividends is an example of: 3. The accumulated depreciation account should show: #22: #23: Total:
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