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Econ1 Practice Final 2

# Econ1 Practice Final 2 - FINAL Thursday December 13th 2007...

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FINAL Last Name: ______________________________ Thursday, December 13th, 2007 Econ 1 First Name: ______________________________ Student ID: ______________________________ DO NOT OPEN YOUR EXAM UNTIL INSTRUCTED TO DO SO!!! INSTRUCTIONS 1. Make sure you have all pages (40 multiple choice, 5 short answer). 2. Answer all multiple choice questions in the space provided below. 3. For the short answer, show all work. We reserve the right to deduct points from answers that are hard to read. 4. You may NOT use a calculator. 5. There are a total of 100 points. DO NOT WRITE IN BOX Question Points MC Q1 Q2 Q3 Q4 Q5 Total MULTIPLE CHOICE ANSWERS (1 point each) 1. ______ 2. ______ 3. ______ 4. ______ 5. ______ 6. ______ 7. ______ 8. ______ 9. ______ 10. ______ 11. ______ 12. ______ 13. ______ 14. ______ 15. ______ 16. ______ 17. ______ 18. ______ 19. ______ 20. ______ 21. ______ 22. ______ 23. ______ 24. ______ 25. ______ 26. ______ 27. ______ 28. ______ 29. ______ 30. ______ 31. ______ 32. ______ 33. ______ 34. ______ 35. ______ 36. ______ 37. ______ 38. ______ 39. ______ 40. ______

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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Cost schedule Labor (workers) Output (units per day) Total fixed cost (dollars) Total variable cost (dollars) 0 0 20 0 1 4 20 25 2 9 20 50 3 13 20 75 4 16 20 100 5 18 20 125 1) Using the data in the above table, the average total cost of producing 16 units per day is A) \$7.50. B) \$6.25. C) \$7.00 D) \$1.25. 2) Using the data in the above table, when output increases from 4 to 9 units, the marginal cost of one of those 5 units is 3) The above table shows a firm ʹ s 4) A fall in the price of lemons from \$10.50 to \$9.50 per bushel increases the quantity demanded from 19,200 to 20,800 bushels. The price elasticity of demand is 5) In general, increasing marginal returns occur A) whenever the slope of the total product curve is positive. B) through the entire range of production. C) as output expands at high levels of production. D) as output expands at low levels of production. 6) If the price of an inferior good rises, the income effect on purchases is 7) If good A is a normal good and income increases, the equilibrium price of A 8) ʺ Diminishing marginal returns ʺ refer to a situation in which the 1

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