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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 ____ 3. If a good is normal, then an increase in income will result in ____ 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 ____ 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
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____ 7. A technological advance will shift the 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? ____ 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?
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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? ____
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