Exam2-prac - Practice Exam Midterm 2 Version 11 Name:_...

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Practice Exam Midterm 2 Version 11 Name:__________________________________ Section #:_______________________________ TA:_____________________________________ (Please see last page for discussion section and TA listing) Please do not open this exam until instructed to do so. All 30 questions are multiple-choice, to be answered 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 your name, student id number, the version number of your exam (in special codes AB), and discussion section number (in special codes CDE). You have 65 minutes to complete the exam. Good luck!
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1) A price floor above the market equilibrium price: a. causes a surplus. b. causes a shortage. c. causes excess supply. d. has no effect. e. both a and c. 2) If total cost is given by TC=10+10Q then: a. AVC=10/Q+10 b. MC = 10 c. AVC = 10Q + 10 d. both a. and b. e. both b. and c. 3) A company could produce 99 units of a good at a total cost of $316 or produce 100 units of the same good at a total cost of $320. The marginal cost of the 100th unit a. is $3.16. b. is $3.20. c. is $4.00 d. is $320. e. cannot be calculated with this information. 4) Suppose the market for hot dogs is perfectly competitive. If Joe’s marginal benefit of consuming hot dogs is greater than the price of hot dogs, a. Joe will get consumer surplus from eating hot dogs. b. the price of hot dogs will rise. c. the price of hot dogs will fall. d. there is no decreasing marginal benefit of eating hot dogs. e. Both a. and b. 1
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Costs per unit (dollars per unit) Quantity (units per day) 06 0 20 80 40 4 8 12 16 20 B C A D 5) In the above figure, as output increases the distance between curves B and C decreases because a. total cost decreases as output increases. b. average fixed cost decreases as output increases. c. there are diminishing returns to average total cost. d. there are increasing marginal costs as output increases. e.
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This note was uploaded on 07/28/2010 for the course ECON 101 taught by Professor Hansen during the Fall '07 term at Wisconsin.

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Exam2-prac - Practice Exam Midterm 2 Version 11 Name:_...

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