202 S08 Practice Exam I

202 S08 Practice Exam I - Economics 202 1. Brit's utility...

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Economics 202 Practice Exam I 1. Brit’s utility schedule for ounces of sweet potato chips is given by Q 0 1 2 3 4 5 U 0 20 43 60 74 72 Brit first experiences diminishing marginal utility upon A. eating the first ounce. B. eating the second ounce. C. eating the third ounce. D. eating the fourth ounce. E. eating the fifth ounce. F. none of the above. 2. As the demand curve becomes steeper, the proportion of the tax borne by the seller A. increases. B. decreases. C. stays the same. D. none of the above. 3. Based on class discussion A. economists tend to disagree on normative propositions and a small majority of positive propositions. B. economists tend to disagree on normative propositions and macroeconomics. C. a policy of allowing some more heroin into the country will likely lower price and decrease property crime since total expenditure by users will likely drop. D. A and B. E. A and C. F. B and C. G. All of the above. H. None of the above. 4. Initially, the demand and supply of Y and X are given by Q d Y = 20 – 2P Y – P X Q d X = 20 – 2P X – P Y Q s Y = P Y Q s X = P X Suppose that the demand for Y increases to Q d Y = 40 – 2P Y – P X . What will be the outcome in the market? A. P X and Q X will both rise while P Y and Q Y will both fall. B. P X and Q X will both fall while P Y and Q Y will both rise. C. The changes in P X and Q X are ambiguous while P Y and Q Y will both fall. D. The changes in P X and Q X are ambiguous as is the change in P Y and Q Y . E. None of the above.
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5. According to Chapter 7 of the text A. An advantage of a partnership is that owners have limited personal liability. B.
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202 S08 Practice Exam I - Economics 202 1. Brit's utility...

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