1b03_test_2_fall_2006_version_1

# 1b03_test_2_fall_2006_version_1 - Page 1 of 8 McMaster...

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Page 1 of 8 McMaster University Department of Economics ECON 1B03 VERSION 1 Midterm Test #2 Tuesday October 17, 2006 Instructor: H Holmes Duration: 45 minutes Total Number of Pages: 5 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 THE TEST VERSION NUMBER ON THE SCAN SHEET OR YOUR GRADE WILL NOT BE RECORDED. You may use a non-programmable calculator. Hand in both the scan sheet and this test copy. TOTAL MARKS AVAILABLE : 26 NAME:____________________________________________________ STUDENT #: _______________________________________________

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Page 2 of 8 1. When excess supply occurs in an unregulated market, there is a tendency for a. price to rise. b. price to decrease. c. quantity supplied to increase. d. quantity demanded to decrease. 2. The price of pizza dough increases. In the market for pizza you would expect that a. the demand for pizza would increase and the price of pizza would increase. b. the demand for pizza would decrease and the price of pizza would fall. c. the supply of pizza would decrease and the price of pizza would increase. d. the supply of pizza would increase and the price of pizza would decrease. 3. Which of the following will unambiguously occur when there is a simultaneous decrease in demand and a decrease in supply? a. an increase in equilibrium price b. a decrease in equilibrium price c. an increase in equilibrium quantity d. a decrease in equilibrium quantity 4. A movement along the demand curve to the left may be caused by a. a rise in income. b. a decrease in supply.
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1b03_test_2_fall_2006_version_1 - Page 1 of 8 McMaster...

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