Sample Midterm - Sample Midterm Please note that none of...

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

View Full Document Right Arrow Icon
Sample Midterm Please note that none of the questions of this sample midterm will be exactly reproduced in the actual Midterm. Make sure that you understand the underlying concepts behind each question so you can answer similar but not exactly equal questions. The sample midterm is not a reference for the length of the actual midterm. Sean studied 5 hours for his first Economics test and his test score was 85; 6 hours for his second Economics test and scored 90; and 7 hours for his third Economics test and scored 95. He also studied 5 hours for his first Math test and his test score was 68; 6 hours for his second Math test and scored 78; and 7 hours for his third Math test and scored 88. 1. The average benefit per hour studied for the Economics tests was ________ and the average benefit per hour studied for the Math tests was _______ . A. 15; 13 B. 5; 10 C. 13; 15 D. 10; 5 2. At the very least, Joe Average and Bill Gates are both identically limited by A. their wealth. B. the 24 hours that comprise a day. C. their knowledge. D. their influence. You own a pizza shop called "Pizza'R' Us". Currently you are paying your cooks an hourly wage of $20. You sell a medium pizza for $10 a pie. By hiring more cooks, you can increase your pizza production as shown in the following table.
Background image of page 1

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

View Full DocumentRight Arrow Icon
3. How many cooks should you hire to maximize your net benefit? A. 1 B. 3 C. 4 D. 5 Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfares are $600, but you have a frequent- flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1400. Your only alternative use for your frequent- flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round-trip airfares are $450. 4. If the Chicago-Atlanta round-trip air fare is $350, should you go to Miami? A. No, there is a loss of $50. B. No, there is a loss of $100. C. Yes, there is economic surplus of $50. D. Yes, there is economic surplus of $400. 5. If the marginal costs of 1, 2, and 3 hours of talking on the phone are $50, $75, and $105, then the total costs are A. $50, $150, and $315. B. $50, $41.67, and $115. C. $50, $125, and $230. D. $50, $175, and $405. 6. Alex received a four-year scholarship to State U. that covered tuition and fees, room and board, and books and supplies. As a result A. attending State U. for four years is costless for Alex. B. Alex has no incentive to work hard while at State U. C. the cost of attending State U. is the amount of money Alex could have earned working for four years.
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 10/05/2010 for the course ECON econ princ taught by Professor Kim during the Spring '10 term at Yonsei University.

Page1 / 12

Sample Midterm - Sample Midterm Please note that none of...

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