midIAS_302_f08

midIAS_302_f08 - Midterm I Version A October 2, 2008...

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Midterm I Economic 302 Name:__________________ Version A Section 9 October 2, 2008 Net-ID:_________________ Before beginning the exam, please verify that you have 7 pages with 28 questions in your exam booklet. On Your scantron sheet, you must place your full name, university ID number, Net-ID & section number. Make sure you bubble in the correct exam version. Please choose the BEST response to the following questions and record your answers on the scantron sheet provided with a number 2 pencil . Only answers marked on the scantron will be counted. Good Luck! 1) Say your girlfriend has received two free tickets to the Sunday movie matinee and she wants you to go with her. Nevertheless, the movie plays at the same time you were planning to watch the football game on the TV. As a rational person you should decide to go the movie: A. Always, since the tickets were free B. Only if you would gain some pleasure from it C. Only if the pleasure you will gain from it outweighs the pleasure you would gain from watching the football game D. Only if it brings you more pleasure than the cost of the tickets 2) You parents have given you a new car on your 16th birthday for which they paid about $24,000. Assume this is also the price you would get if you decided to sell the car a month after getting it. The monthly costs of driving the car are $100 for oil changes and $200 for gas. If you decide to keep the car, the total costs of the car to you this month will be: A. $2,300 B. $300 C. $24,300 D. $0 3) Scarcity means that A. People have unlimited wants B. Everyone can not have all they want at a zero price C . People try to be satisfied with what they have D. People always respond to incentives 1
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4) If you receive $18 worth of pleasure from the first hole of golf played and your additional pleasure from succeeding holes drops $1 for each hole played, how many holes of golf would you play if you had to pay $2.10 per hole. A. 9 B . 12 C. 14 D. 16 5) If you receive $18 worth of pleasure from the first hole of golf played and your additional pleasure from succeeding holes drops $1 for each hole played. You must pay $25 up front to get on the course but you can then play as many holes as you like for the day without any further charge. How many holes of golf will you play. A.
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midIAS_302_f08 - Midterm I Version A October 2, 2008...

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