Exam1-prac - Practice Exam Midterm 1 Version 11 Name...

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Practice Exam Midterm 1 Version 11 Name:__________________________________ Section #:_______________________________ TA:_____________________________________ (Please see last page for discussion section and TA listings) Please do not open this exam until instructed to do so. All 30 questions are multiple-choice. Choose the best answer for each question, and fill in the corresponding circle on the bubble sheet provided. Please use a number two pencil on the bubble sheet. Fill in your answers completely. You may write on this exam question booklet, but anything you write on this will not be graded. You must hand in both this exam question booklet and the bubble sheet before leaving the exam room. Please. .. no calculators or scratch paper. If you have a question, please raise your hand and a proctor will assist you. On the bubble sheet, be sure to include you name, id number, section number, and the version number of your exam (found at the top of this page). You have 65 minutes to complete the exam. Good luck!
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1) Suppose you have an income of $100 dollars, and you can spend this income on two goods: movies and video rentals. Movies cost $10 per ticket, and videotape rentals cost $5. With movies on the vertical axis, the slope of the budget line is a. -1/2. b. 1/2. c. -2. d. 2. e. –5. 2) Jane produces only corn and cloth. Taking account of her preferences for corn and cloth a. makes her production possibility frontier straighter. b. makes her production possibility frontier steeper. c. makes her production possibility frontier flatter. d. shifts her production possibility frontier in. e. does not affect her production possibility frontier. 3) At a typical Saturday farmer’s market, the demand for muskmelon can be written as Q D =600–100P. Supply may be written as Q S =200P. The equilibrium quantity and price pair is: a. 400 melons; $4 b. 400 melons; $2 c. 300 melons; $4 d. 300 melons; $3 e. 200 melons, $6 4) People come to expect that the price of a gallon of gasoline will rise next week. As a result, a. today’s supply of gasoline increases. b. today’s demand for gasoline increases. c. the price of a gallon of gasoline falls today. d. next week’s supply of gasoline decreases. e. both a and d. 1
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Good A Good B 0 5) The indifference curve in the above figure a. could illustrate a person’s preferences for identical computer disks made by two different companies. b. could illustrate a person’s preferences for right-handed and left-handed gloves. c. has a marginal rate of substitution that at first decreases and then increases. d. Both a and c. e. None of the above statements are correct. 6) Utility is best defined as a. the cost of the inputs used to produce a bundle of goods. b. the price paid for a bundle of goods.
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Exam1-prac - Practice Exam Midterm 1 Version 11 Name...

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