Practice_Exam_1_Summer_11_Micro2

Practice_Exam_1_Summer_11_Micro2 - Sam Houston State...

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Sam Houston State University Dr. Fidel Gonzalez INTERMEDIATE MICROECONOMICS EXAM I (PRACTICE EXAM) Answer all questions using a scantron. All questions are worth one point unless otherwise is noted. Questions 49 and 50 are bonuses. Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. A decrease in demand is represented by a. a movement downward and to the right along a demand curve. b. a movement upward and to the left along a demand curve. c. a rightward shift of a demand curve. d. a leftward shift of a demand curve. ____ 2. An increase in the price of a good will a. increase demand. b. decrease demand. c. increase quantity demanded. d. decrease quantity demanded. ____ 3. If a good is normal, then an increase in income will result in a. an increase in the demand for the good. b. a decrease in the demand for the good. c. a movement down and to the right along the demand curve for the good. d. a movement up and to the left along the demand curve for the good. ____ 4. Suppose that a decrease in the price of good X results in fewer units of good Y being sold. This implies that X and Y are a. complementary goods. b. normal goods. c. inferior goods. d. substitute goods. ____ 5. A movement along the supply curve might be caused by a change in a. technology. b. input prices. c. expectations about future prices. d. the price of the good or service that is being supplied. ____ 6. Lead is an important input in the production of crystal. If the price of lead decreases, then we would expect the supply of a. crystal to be unaffected. b. crystal to decrease. c. crystal to increase. d. lead to increase.
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____ 7. A technological advance will shift the a. supply curve to the right. b. supply curve to the left. c. demand curve to the right. d. demand curve to the left. Figure 21-3 In each case, the budget line moves from BC-1 to BC-2. ____ 8. Refer to Figure 21-3 . Which of the graphs in the figure reflects a decrease in the price of good X only? a. graph a b. graph b c. graph c d. graph d ____ 9. Refer to Figure 21-3 . Which of the graphs in the figure reflects an increase in the price of good Y only? a. graph a b. graph b c. graph c d. graph d ____ 10. Refer to Figure 21-3 . Which of the graphs in the figure could reflect a decrease in the prices of both goods? a. graph a b. graph b c. graph c d. None of the above is correct.
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____ 11. Suppose a consumer spends her income on two goods: iTunes music downloads and books. The consumer has $100 to allocate to these two goods, the price of a downloaded song is $1, and the price of a book is $20. What is the maximum number of books the consumer can purchase? a. 100 b. 20 c. 10 d. 5 ____ 12. Suppose a consumer spends her income on two goods: music CDs and DVDs. The price of a CD is $8, and the price of a DVD is $20. If we graph the budget line by placing the quantity of CDs purchased on the horizontal axis, what is the slope of the budget line? a.
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Practice_Exam_1_Summer_11_Micro2 - Sam Houston State...

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