101exam1a - Eco 101 form A 1 Name:_ ECO 101 830 Principles...

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Eco 101 form A Name:_________________________ ECO 101 830 Principles of Microeconomics Exam 1 February 24, 2006 Form A Part I: Multiple Choice (60 points) Read each question carefully and select the best response . Circle the appropriate letter of the response and fill in the corresponding circle on your answer sheet. 1. Other things being equal, demand is MORE elastic when a) the good is a luxury and not a necessity. b) the good is broadly defined (a hamburger rather than a Big Mac). c) the item is NOT a large part of your budget. d) all of the above. 2. Suppose parking fees at SUNY Oswego increase. If demand is relatively elastic then a) total revenue from parking fees will fall. b) total revenue from parking fees will rise. c) total revenue from parking fees is constant. d) the direction of change in total revenue from parking fees cannot be determined. Consider the graphs below to answer the following two questions. 3. Which graph(s) below show a relationship with a negative slope? a) A and D. b) C and D. c) A and B. d) B and C. 4. The production possibility curve (or frontier) is concave due to a) its negative slope. b) its shifting out over time. c) increasing opportunity costs. d) all of the above. 5. Suppose the elasticity of demand for an iPod is – 3.5 . This means that a) the demand for iPods is inelastic. b) the demand curve for iPods is very steep. c) a 10 percent increase in the price of iPods will cause the quantity demanded to RISE by 35%. d) a 10 percent increase in the price of iPods will cause the quantity demanded to FALL by 35%.
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101exam1a - Eco 101 form A 1 Name:_ ECO 101 830 Principles...

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