Midterm1 - Oct 6, 2008

Midterm1 - Oct 6, 2008 - ECO304K Introduction to...

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ECO304K: Introduction to Microeconomics - Unique 33815 Fall 2008, Dr. Olivier Giovannoni Midterm 1 October 6, 2008 Length: 36 questions, 45 minutes. 1. Report your EID and name on the scantron provided. All answers should be provided there. 2. You can write anything you want on the test and on the back of the scantron. 3. In accordance with UT rules and regulations, any student caught cheating is in deep trouble. 4. When you're done, KEEP the test, GIVE the scantrons to the TAs (not to me) and EXIT quietly 5. The grades will be posted on eGradeBook and the answers on Blackboard when I have the grade distribution and the correct - response rates (tomorrow, I guess). MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) If the United States can increase its production of automobiles without decreasing its production of any other good, the United States must have been producing at a point 1) A) within its PPF . B) beyond its PPF . C) on its PPF . D) None of the above is correct 2) As we move along a bowed - out production possibility frontier, producing more tacos and less pizza, the opportunity cost of a pizza ________. 2) A) increases and then decreases B) increases C) remains the same D) decreases 3) A typewriter is an inferior good. As people's incomes increase and other things remain the same, you predict that the 3) A) demand for typewriters will decrease and the price will rise. B) demand for typewriters will increase as the price of a typewriter falls. C) price of a typewriter will fall. D) price of a typewriter will fall and the demand for typewriters will increase. 4) The taxicab fare in Newville is regulated. The fare currently charged is $6 a ride. Newville taxicab drivers want to obtain government's permission to lower the fare, which they think will increase their total revenue. From this we can conclude that the drivers believe that the demand for taxicab rides is 4) A) inelastic. B) unit elastic. C) elastic. D) perfectly inelastic. 5) If the price of a CD is equal to the equilibrium price, there will be ________ of CDs and the price will ________. 5) A) neither a shortage nor surplus; not change B) surplus; fall C) surplus; rise D) shortage; fall 6) If a producer can use resources to produce either good A or good B, then A and B are 6) A) complements in production. B) complements in consumption. C) substitutes in production. D) substitutes in consumption. 1
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7) Walkman Watch expects a recession to occur. Knowing that a Walkman is a normal good, you predict that the demand for a Walkman 7) A) will increase. B) will remain unchanged. C) will decrease.
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Midterm1 - Oct 6, 2008 - ECO304K Introduction to...

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