econ practice exam 2 - NAME _ STUDENT NUMBER _ C. Liedholm...

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NAME _____________________ STUDENT NUMBER ________________ ECONOMICS 201-3 C. Liedholm MIDTERM EXAM 2 – EARLY BIRD EDITION POST HALLOWEEN EDITION READ THE QUESTIONS CAREFULLY. THE TOTAL TIME FOR THE EXAM IS 60 MINUTES. CHOOSE THE BEST ANSWER TO EACH OF THE FOLLOWING QUESTIONS OR STATEMENTS. MARK CORRECT ANSWERS ON THE SCORE SHEET (60 POINTS) 1. M.C. stands for: a. the initials of Melissa Camps b. my cobra c. the initials of the rap star Hammer d. marginal cost e. ALL OF THE ABOVE (HINT: THIS IS THE CORRECT ANSWER) 2. The key determinant of price elasticity of supply is: HAVE YOU SEEN THIS QUESTION BEFORE? a. the number and availability of substitute products b. the price of resources c. the strength of the demand for the good d. time or the time period being considered e. tastes 3. Which of the following is likely to have the lowest price elasticity of demand? HOW ABOUT THIS ONE? a. Coke in Michigan b. Coke in the United States c. soft drinks in the Michigan d. soft drinks in the United States e. soft drinks in the world 4. The marginal product of labor is defined as: a. total output divided by total labor input b. change in total profit divided by the change in total labor input c. change in total costs divided by the change in total labor input
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d. change in total labor input divided by the change in total output e. change in total output divided the change in total labor input 5. The law of diminishing marginal productivity is based on the assumption that: a. at least one input is fixed b. all inputs are variable c. there are diseconomies of scale d. technology is changing e. at least one input is variable 6. A firm that wants to price discriminate successfully should: a. charge one price and should not keep the markets(groups)separate b. should charge different prices in the different markets but should not keep the markets separate c. keep the markets separate and should charge the same price in all the markets d. keep the markets separate and should charge the highest price in the market with highest price elasticity of demand e. keep the markets separate and should charge the highest price in the market with the lowest price elasticity of demand 7. How can the economic profit of a firm be zero at the same time that its accounting profit is positive? a. this is because implicit costs are included as a cost when calculating accounting profits, but are not included when calculating economic profits b. this is because explicit costs are included as a cost when calculating accounting profits, but are not included when calculating economic profits c. this is because implicit costs are not included as a cost when calculating accounting profits, but are included when calculating economic profits d. this statement could not be true because economic profit and accounting profit are always the same e. none of the above
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8. At an output level of 15,000 maize and blue scary
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econ practice exam 2 - NAME _ STUDENT NUMBER _ C. Liedholm...

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