Microeconomics

Microeconomics - Temple University Spring, 2010 Extra...

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Temple University Extra Credit #1 on Parkin Chapter 3 Dr. Wargo Spring, 2010 50 Questions @ 2 points each Name___________________________________ You may work in teams, but each person must hand in an indivdiual SCANTRON. The purpose of this extra credit sisto reinforce by multiple recall the basic Demand/Supply Model in Ch 3. If you get a grade of 80% or more on this Extra Cedit #1, you will receive two points added to your FINAL GRADE. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The above ±gures show the market for gasoline. Which ±gure(s) shows the effect of a decision by the OPEC countries in the Middle East to export less oil to the rest of the world? A) Figure C B) Figure B C) Figures B and C D) Figure D 1) # Extra Credit #1 on Parkin Chapter 3, Spring, 2010
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Extra Credit #1 on Parkin Chapter 3, Spring, 2010 2) Consider the market for soft drinks shown in the Fgure above. Suppose the economy is at point a . What would result in a movement to point b ? A) an increase in the price of bottled water B) a decrease in the relative price of a soft drink C) a decrease in the price of bottled water D) an increase in the opportunity cost of soft drinks 2) 3) If the demand curve shifts rightward, and the supply curve shifts leftward the A) quantity must increase and the price might rise, fall, or not change. B) quantity must decrease and the price might rise, fall, or not change. C) price must fall and the quantity might increase, decrease, or not change. D) price must rise and the quantity might increase, decrease, or not change. 3) 4) The production costs of aspirin increase simultaneously as doctors Fnd that one aspirin per day reduces the risk of heart attacks. Supply and demand for aspirin will A) both decrease so that the equilibrium price falls and the equilibrium quantity will decrease, increase, or remain constant. B) both increase, so that the equilibrium price and equilibrium quantity will increase. C) increase and decrease, respectively, so that the equilibrium price will decrease, increase, or remain constant, but the equilibrium quantity will increase. D) decrease and increase, respectively, so that the equilibrium price will increase, but the equilibrium quantity can decrease, increase, or remain constant. 4) 2 Extra Credit #1 on Parkin Chapter 3, Spring, 2010
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Extra Credit #1 on Parkin Chapter 3, Spring, 2010 5) Suppose that there is an improvement in production technologies. Which of the following will happen? A) a leftward shift of the supply curve and both the equilibrium price and equilibrium quantity fall B) a rightward shift of the supply curve and the equilibrium price falls while the equilibrium quantity increases C) a rightward shift of the supply curve and both the equilibrium price and equilibrium quantity fall D) a rightward shift of the supply curve and both the equilibrium price and equilibrium quantity rise 5) 6) Consider the Fgure above showing the market for
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This note was uploaded on 03/24/2011 for the course ECON 2902 taught by Professor Wargo during the Spring '10 term at Temple.

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Microeconomics - Temple University Spring, 2010 Extra...

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