exam1_intermediate - Intermediate Microeconomics 220:203:B6...

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1 Intermediate Microeconomics 220:203:B6 Instructor: Tibor Besedes Exam 1, June 5, 2003 Name:_______________________________________________ SSN:___________________ INSTRUCTIONS : Write your SSN under ID and fill in the proper boxes. Mark A as the test form. Choose the best answer and mark it on the scantron. When you are done, turn in the scantron only. You can keep the exam itself. Please, mind your own work. Good luck! 1. A supply curve reveals a. the quantity of output consumers are willing to purchase at each possible market price. b. the difference between quantity demanded and quantity supplied at each price. c. the maximum level of output an industry can produce, regardless of price. d. the quantity of output that producers are willing to produce and sell at each possible market price. 2. When we draw and use supply and demand curves: a. we are assuming that sellers have little market power. b. we are assuming that the market is roughly competitive. c. we are assuming that buyers have little market power. d. all of the above. 3. From 1970 to 1993, the real price of college education increased and total enrollment increased. Which of the following would cause an unambiguous increase in the real price of college education? a. A shift to the right in the supply curve for college education and a shift to the right in the demand curve for college education. b. A shift to the right in the supply curve for college education and a shift to the left in the demand curve for college education. c. A shift to the left in the supply curve for college education and a shift to the right in the demand curve for college education. d. A shift to the left in the supply curve for college education and a shift to the left in the demand curve for college education. 4. Plastic and steel are substitutes in the production of body panels for certain automobiles. If the price of plastic increases, with other things remaining the same, we would expect a. the price of steel to fall. b. the demand curve for steel to shift to the right. c. the demand curve for plastic to shift to the left. d. nothing to happen to steel because it is only a substitute for plastic. e. the demand curve for steel to shift to the left.
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2 The demand for books is: Q d = 120 - P The supply of books is: Q s = 5P 5. What is the equilibrium price of books? a. 5 b. 10 c. 15 d. 20 e. none of the above 6. The price of good A goes up. As a result the demand for good B shifts to the left. From this we can infer that: a. good A is a normal good. b. good B is an inferior good. c. goods A and B are substitutes. d. goods A and B are complements. e. none of the above. 7. The income elasticity of demand is the a. absolute change in quantity demanded resulting from a one-unit change in income. b.
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exam1_intermediate - Intermediate Microeconomics 220:203:B6...

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