FinalF2009aAnswerKey

FinalF2009aAnswerKey - Econ 001: Final Exam (Dr. Stein)...

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

View Full Document Right Arrow Icon
Econ 001: Final Exam (Dr. Stein) Answer Key December 16 th , 2009 Instructions: This is a 120-minute examination. Write all answers in the blue books provided. Show all work. Use diagrams where appropriate and label all diagrams carefully. Write your name and your Recitation Instructor's name in every blue book that you use. This exam is given under the rules of Penn's Honor system. All blue books, blank or filled, must be handed in at the end of this exam. No blue books may be taken from the room. The use of Programmable Calculators is in violation of Departmental rule. It is strictly forbidden! Check: The Exam has 3 parts. Part 1 consists of 12 multiple-choice questions. Please write you answers in blue book 1. Part 2 consists of 1 short answer question. Please use bluebook 1 for this question. Part I: Multiple Choice Questions (3 points each/36 points total): 1. Adam paid $5 to enter a raffle and won a ticket to a Phillies playoff game. Unfortunately, the game is scheduled for the same evening as Penn Soccer Teams game. Adam can see the Soccer team for free and values it at $25. The resale value of the Philly ticket is $25 and he values that game at $40. What is the opportunity cost of going to the Philly’s game? a. $65 b. $60 c. $50 d. $55 2. Apples Bananas George 6/hr 12/hr Frank 4/hr 6/hr According to the table above, which of the following statements is/are true? a. George has the absolute advantage in apples, Frank has the absolute advantage in bananas b. George has the absolute advantage in apples, Frank has the comparative advantage in bananas c. George has the absolute advantage in apples, Frank has the comparative advantage in apples d. George has the comparative advantage in apples, Frank has the comparative advantage in bananas
Background image of page 1

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

View Full DocumentRight Arrow Icon
Two drivers – Tom and Jerry – each drive up to a gas station. Before looking at the price, each places an order. Tom says, “I’d like 10 gallons of gas.” Jerry says, “I’d like $10 of gas.” What is each driver’s price elasticity of demand? a. Tom: 0, Jerry: 1 b. Tom: 1, Jerry: 0 c. Tom: infinite, Jerry: between 0 and 1 4. Suppose the market demand curve for Wii game system is Q W =100-2P w -P HT , where P w is the price for a Wii, and P HT is the price for a Home Theatre surround sound system. We know that the supply curves are upward sloping. What we can conclude for Wii and Home Theatre systems? a. Both of them are normal goods. b. They are substitutes. c. Both of them are inferior goods. d. They are complements. 5. Assume that the production costs (all expressions in $ terms) of a firm producing q units of a good: TC = 640 + 10q 2 MC = 20q We are told this is a perfectly competitive market for the good, with N identical firms, and that is in a long run equilibrium. In this case we know that this firm: a. Would prefer to shut down than produce at any positive quantity.
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 12/14/2010 for the course ECON 001 taught by Professor Stein during the Fall '07 term at UPenn.

Page1 / 12

FinalF2009aAnswerKey - Econ 001: Final Exam (Dr. Stein)...

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