Micro Midterm June 2008 with Answers

# Micro Midterm June 2008 with Answers - CARLETON UNIVERSITY...

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C A R L E T O N U N I V E R S I T Y DURATION: 2.5 HOURS     No. of Students: 145 ECON 1000 A Course Instructor(s): George Kowalski Students MUST count the number of pages in this examination question paper before beginning to write, and report any discrepancy immediately to a proctor. This question paper has twelve (12) pages. This examination paper MAY be taken from the examination room. In addition to this question paper, students require: an examination booklet yes no a Scantron sheet yes no EXAMINATION CONSISTS OF 2 PARTS AS FOLLOWS: PART A -- MULTIPLE CHOICE -- 60 Marks PART B -- SHORT ANSWERS -- 40 Marks PART A—MULTIPLE CHOICE. DO ALL QUESTIONS. 2 MARKS EACH Answer on attached sheet (found at the end of exam). Be sure to detach and hand in. 1. Making decisions "at the margin" means that people a. make those decisions that do not impose a marginal cost. b. evaluate how easily a decision can be reversed if problems arise. c. compare the marginal costs and marginal benefits of each decision. d. always calculate the marginal dollar costs for each decision. Figure 1 1 Mid-Term E X A M I N A T I O N JUNE 2008 Authorized Memoranda Non-programmable calculator allowed.

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2. Refer to Figure 1 . What is the opportunity cost to society of the movement from point A to point C? a. 50 baseballs b. 100 baseballs c. 100 bananas d. 300 bananas 3. Refer to Figure 1 . The movement from point C to point D was most likely caused by a. unemployment. b. a decrease in society's preference for bananas. c. fewer resources available for production. d. All of the above are correct. Figure 2 4. Refer to Figure 2 . If the price is \$25, there would be a a. surplus of 300 and price would fall. b. surplus of 200 and price would fall. c. shortage of 200 and price would rise. 2
d. shortage of 300 and price would rise. 5. Refer to Figure 2 . If the price is \$10, there would be a a. shortage of 200 and price would rise. b. surplus of 200 and price would fall. c. shortage of 600 and price would rise. d. surplus of 600 and price would fall. 6. Holding all other forces constant, if raising the price of a good results in less total revenue, the demand for the good must be a. unit elastic. b. inelastic. c. elastic. d. perfectly inelastic. Figure 3 7. Refer to Figure 3 . Buyers who value this good more than price are represented by segment a. AC. b. CE. c. BC. d. CD. 8. Refer to Figure 3. Sellers whose costs are less than price are represented by segment a. AC. b. CE. c. BC. d. CD. 9. If Roberta sells a shirt for \$30, and her producer surplus from the sale is \$21, her cost must have been a. \$51. b. \$30. c. \$21. 3

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d. \$9. Figure 4 10. Refer to Figure 4 . If trade in shoes is allowed, the price of shoes in Korea will be a. \$12 per pair. b.
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## Micro Midterm June 2008 with Answers - CARLETON UNIVERSITY...

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