sample mid-term 2(paper 1) solution

# sample mid-term 2(paper 1) solution - This is version A...

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Mid-term 2 17 November 2007 Version A - 1 - Part I: Multiple Choices. Choose the BEST answer. 1. Which version of the exam paper do you have? A) version A. B) version B. 2. Which class are you in? A) ECON1001A. B) ECON1001B. C) ECON1001C. D) ECON1001D. E) ECON1001E. F) ECON1001F. G) ECON1001G. H) ECON1001H. 3. Tim is eating at the cafeteria. The 7 th glass of soda that Tim consumes will produce an extra benefit of 10 cents and has an extra cost of zero. The cost-benefit principle predicts that Tim will A) realize he has had too much soda to drink and go home. B) drink the 7 th glass and continue until the marginal benefit of drinking another glass of soda is zero. C) volunteer to empty out the soda fountain. D) not drink the 7 th glass. E) flip a coin to decide. 4. Moe and Larry have completed the foundation for their new house. Before doing more work, they realized that the foundation encroached on their neighbor's property by five feet. They should A) continue building where they started because the foundation is a sunk cost that should not matter.
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## This note was uploaded on 04/17/2011 for the course ECON 1001 taught by Professor S.c during the Fall '10 term at HKU.

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sample mid-term 2(paper 1) solution - This is version A...

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