==2009 midterm 1 version 3==

==2009 midterm 1 version 3== - Page 1 of 11 McMaster...

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Page 1 of 11 McMaster University Department of Economics ECON 1B03 Midterm Test #1 VERSION 3 Instructor: Professor H Holmes Duration: 1.5 hours Total Number of Pages: 11 INSTRUCTIONS : Answer all questions on the scan sheets. USE AN HB PENCIL ONLY. Make sure you carefully fill in the bubbles. YOU MUST FILL IN YOUR STUDENT NUMBER, AND VERSION NUMBER ON THE SCAN SHEET OR YOUR GRADE WILL NOT BE RECORDED AND YOU WILL LOSE THE BONUS MARK. You may use the Casio FX calculator. Hand in the scan sheet and this test copy. TOTAL MARKS AVAILABLE : 45 NAME:____________________________________________________ STUDENT #: _______________________________________________ MUGSI ID: ________________________________________________
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Page 2 of 11 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Which of the following would NOT be a determinant of demand? a. the price of related goods b. income c. tastes d. expectations e. the prices of the inputs used to produce the good ____ 2. If a good is "normal," then an increase in income will result in a. no change in the demand for the good. b. an increase in the demand for the good. c. a decrease in the demand for the good. d. a lower market price. ____ 3. If the price of a substitute to good X increases, then the a. demand for good X will decrease. b. market price of good X will decrease. c. demand for good X will increase. d. quantity demanded for good X will increase. Figure 4-2 ____ 4. Refer to Figure 4-2 . The shift from D to D 1 could be caused by a. an increase in price. b. a decrease in the price of a complement. c. an increase in technology. d. a decrease in the price of a substitute.
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Page 3 of 11 ____ 5. Lead is an important input in the production of crystal. If the price of lead decreases, all else equal, we would expect the supply of a. crystal to be unaffected. b. crystal to decrease. c. crystal to increase. d. lead to increase. Figure 4-7 ____ 6. Refer to Figure 4-7 . At a price of $35, a. there would be a shortage of 400 units. b. there would be a shortage of 200 units. c. there would be a surplus of 200 units. d. there would be a surplus of 400 units. e. the market would be in equilibrium. ____ 7. Which of the following would definitely result in a higher price in the market for Snickers? a. demand increases and supply decreases b. demand and supply both decrease c. demand decreases and supply increases d. demand and supply both increase ____ 8. Suppose that the number of buyers in a market increases and a technological advancement occurs. What would we expect to happen in the market? a. The equilibrium price would increase, but the impact on the amount sold in the market would be ambiguous. b. The equilibrium price would decrease, but the impact on the amount sold in the market
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This note was uploaded on 03/13/2011 for the course ECON 1B03 taught by Professor Hannahholmes during the Spring '08 term at McMaster University.

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==2009 midterm 1 version 3== - Page 1 of 11 McMaster...

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