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Sample Midterm
Key
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.
Frank  Chapter 001
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
AACSB: Analytical Skills
Bloom's: Analysis
Frank  Chapter 001 #112
Learning Objective: 16
Section: Three Important Decision Pitfalls
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.
AACSB: Analytical Skills
Bloom's: Understanding
Frank  Chapter 001 #9
Learning Objective: 11
Section: Economics: Studying Choice in a World of Scarcity
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View Full Document 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.
Frank  Chapter 001
3. How many cooks should you hire to maximize your net benefit?
A.
1
B.
3
C.
4
D.
5
AACSB: Analytical Skills
Bloom's: Analysis
Frank  Chapter 001 #125
Learning Objective: 16
Section: Three Important Decision Pitfalls
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 roundtrip 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 ChicagoAtlanta roundtrip airfares are $450.
Frank  Chapter 001
4. If the ChicagoAtlanta roundtrip 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.
AACSB: Analytical Skills
Bloom's: Analysis
Frank  Chapter 001 #54
Learning Objective: 15
Section: Three Important Decision Pitfalls
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.
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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.
 Spring '10
 Kim
 Economics

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