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Final+v1-4

# Final+v1-4 - V ersion 1 Final Exam Econ 102 This exam has...

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Version 1 Final Exam, Econ 102 April 22, 2010 This exam has two parts: a multiple choice section consisting of 30 questions, and a short answer/graphing section, worth 20 points. You will submit all exam materials (scantron, question booklet and completed short answers) and sign yourself out at the end of the exam. 1. In the Ann Arbor pizza market, the demand curve is downward sloping while the supply curve of pizza is upward sloping. Suddenly a change in tastes makes every consumer willing to increase their consumption of pizza by 100% at any given price. What will happen to the equilibrium price and quantity in the pizza market? a. Price increases by 100% ; quantity increases by 100% b. Price increases by 100% ; quantity increases by less than 100% c. Price increases by less than 100% ; quantity increases by 100% d. Price increases by less than 100%; quantity increases by less than 100% 2. In April 2009, one million college students graduated and started looking for jobs. At the time of graduation, none had found jobs. What happened to the unemployment rate in April 2009? The economy of Lorch in 2008 and 2009 is summarized in the following table. Use this table to answer the question 3: 2008 Price Quantity Bananas 10 5 Bricks 15 4 2009 Price Quantity Bananas 11 6

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Bricks 12 3 3. In calculating the inflation rate, the statistics bureau of Lorch decides to use the production in 2008 as the standard market basket. The inflation rate calculated in this way would be: 4. An unexpected increase in inflation 5. Which of the following statements describes the presence of diminishing returns in a production function? Holding all other factors of production constant, a. the marginal productivity of the other factor is positive and rising. b. the marginal productivity of the other factor is positive but falling. c. the marginal productivity of the other factor is falling and negative. d. the marginal productivity of the other factor is constant. 6. Which of the following causes a negative shift of the supply curve of loanable funds?

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