test1_jun06 - Page 1 of 15 Department of Economics Prof...

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Unformatted text preview: Page 1 of 15 Department of Economics Prof. Gustavo Indart University of Toronto June 6, 2008 ECO 100Y INTRODUCTION TO ECONOMICS Midterm Test # 1 LAST NAME FIRST NAME STUDENT NUMBER Circle your section of the course : L0201 – M/W from 3:00 to 5:00 PM L5101 – M/W from 6:00 to 8:00 PM INSTRUCTIONS : 1. The total time for this test is 1 hour and 50 minutes. 2. Aids allowed: a simple calculator. 3. Write with pen instead of pencil. DO NOT WRITE IN THIS SPACE Part I /40 Part II 1. /10 2. /10 3. /10 4. /10 5. /10 Part III 1. /20 2. /20 3. /20 TOTAL /150 Page 2 of 15 PART I (40 marks) Instructions : • Multiple choice questions are to be answered using a black pencil or a black or blue ball- point pen on the separate SCANTRON sheet being supplied. • Be sure to fill in your name and student number on the SCANTRON sheet! • Each question is worth 4 marks. No deductions will be made for incorrect answers. • Write your answers to the multiple choice questions ALSO in the table below. You may use this question booklet for rough work, and then transfer your answers to each multiple choice question onto the separate SCANTRON sheet. Your answers must be on the SCANTRON sheet. In case of a disagreement, the answer to be marked is the one on the SCANTRON sheet. 1 2 3 4 5 6 7 8 9 10 11 1. (From August/2004 exam) Sean is attending university as a full time student this year. Sean therefore had to give up his full time job in which he earned $25,000 per year. He also had to move away from his parents’ home where he was paying $2,000 per year for room and board and is now enrolled in a university residence which costs $12,000 per year. In addition, Sean must pay tuition of $5,000 and buy text books for $500. What is Sean’s opportunity cost of becoming a full-time university student? A) $20,500. B) $25,000. C) $30,000. D) $40,500. E) $42,500. 2. (From August/2007 exam) Which one of the following statements is correct? A) If the price of a product increases and total revenue is unchanged, then the demand curve is relatively inelastic. B) If the price of a product increases and total revenue rises, then the demand curve is relatively elastic. C) If the price of a product falls and total revenue falls, then the demand curve is relatively inelastic. D) If the price of a product falls and total revenue rises, then the demand curve has unitary elasticity. E) None of the above is correct. Page 3 of 15 3. (From May/2008 exam) Assuming everything else remaining the same, which of the following would cause the demand curve for new cars to shift to the right? A) A decrease in the price of gasoline. B) A fall in the price of used cars. C) A fall in the price of new cars. D) A fall in the price of steel used in the production of cars....
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This note was uploaded on 06/09/2010 for the course ECO ECO100 taught by Professor Inheart during the Spring '09 term at University of Toronto.

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test1_jun06 - Page 1 of 15 Department of Economics Prof...

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