p2 sp03 - Your Name: _ Check Your TA’s Name: _ Vladimir...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Your Name: _____________________________________________________ Check Your TA’s Name: ____________ Vladimir ____________Raji ______________ Joe _____________ Jing _____________Jose . Econ 101 - Wissink - S03 PRELIM #2 J. WISSINK April 8, 2003 INSTRUCTIONS 1) There are three sections in this exam. 2) ANSWER ALL QUESTIONS. TOTAL POINTS = 100 3) Part I: 14 multiple choice questions (3 points each) Part II: 3 short essay questions (12 points each) Part III: 1 problem (22 points each) 4) Read all questions carefully . 5) Write legibly and remember to label all graphs . 6) Total time = 90 minutes. GOOD LUCK P.S.: There is a blank work sheet at the end of this exam for your use.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 apples bananas IC1 IC2 A B C D E Part I. Multiple choice. Do ALL of the following multiple choice questions: Read each question carefully and CIRCLE the best answer. It often helps to jot down a quick graph or do some work next to the question before searching for the answer. 1. The XYZ corporation produces yo-yos. Which one of the following will most likely shift the position of the firm’s short-run marginal cost curve ? A. An increase in the licensing fee needed to operate the business. B. A decrease in the incomes of consumers who buy yo-yo. C. A decision by the XYZ corporation to temporarily produce fewer yo-yos. D. An increase in the price the string used to make yo-yos. E. An increase in the salary offered by Cornell University to the owner/entrepreneur of XYZ Yo-Yos to leave XYZ and come and teach at Cornell. 2. Assume empire apples are produced in a perfectly competitive industry. Assume that the Red Apple Company, a perfectly competitive firm producing empire apples, is currently maximizing profit and earning a zero economic profit. The demand for empire apples has just increased. Which one of the following will occur in the short run? A. The market price will increase and the Red Apple Company will increase output and earn zero short run economic profit. B. The market price will decrease and the Red Apple Company will decrease output and earn a normal profit. C. The market price will increase and the Red Apple Company will increase output and earn positive short run economic profit. D. The market price will decrease and the Red Apple Company will decrease output and incur a loss. E. There will be no change in the price and the Red Apple Company will sell more and have more economic profit. 3. The graph on the right represents two indifference curves and a number of bundles, labeled A through E. Which one of the following statements about this graph is false ? A. A is at least as good as B. B. C and D provide the same utility. C. The marginal rate of substitution at C is smaller than the marginal rate of substitution at D.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/19/2010 for the course ECON 1101 taught by Professor Evans during the Fall '08 term at Cornell.

Page1 / 13

p2 sp03 - Your Name: _ Check Your TA’s Name: _ Vladimir...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online