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practicefinalexamB - ECON 251 Final Exam Pink Spring...

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Econ 251 Spring 2010 Final Exam Pink Page 1 ECON 251 Final Exam Pink Spring 2010 (Practice Final Exam B for Spring 2011) 1. Suppose you paid \$50 for a Jimmy Buffet concert, but then it is canceled at the last minute, and you cannot get a refund. The \$50 you spent is what type of cost? a. opportunity cost b. economic cost c. implicit cost d. sunk cost 2. In one hour, Miles can produce 4 cars or 6 airplanes. In one hour, Jack can produce 5 cars or 8 airplanes. Jack has a comparative advantage in the production of_______ and Miles has comparative advantage in the production of _______. a. Airplanes; cars b. Cars; airplanes c. Both airplanes and cars; neither airplanes nor cars d. Neither airplanes nor cars; both airplanes and cars 3. If Miles’ production possibilities are graphed, what would the slope of his PPF be? (Assume the number of airplanes produced is measured on the x axis.) 4. If Miles and Jack work together to produce cars and airplanes which of the following points would be on their joint PPF? 5. Suppose demand in the market for ear buds is P=30-3Q d and supply is P = 6+3Q s . What is the MB of the 3 rd unit of ear buds?

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Econ 251 Spring 2010 Final Exam Pink Page 2 6. Referring to the question above, what is the market equilibrium? a. Equilibrium price is \$21 and equilibrium quantity is 3. b. Equilibrium price is \$18, and equilibrium quantity is 4. c. Equilibrium price is \$5, and equilibrium quantity is 15. d. Equilibrium price is \$21, and equilibrium quantity is 5. 7. Referring to the same demand and supply equations above, what is consumer surplus when the market is at equilibrium? 8. If the government sets a price ceiling at \$9 in the market above, what is the resulting deadweight loss? 9. If two goods are substitutes in production, which of the following is true? 10. If newspapers and magazines are substitutes in production and substitutes in consumption as well, then an increase in the price of magazines will a. increase the demand for newspapers and decrease the demand for magazines b. decrease the demand for newspapers and increase the supply of newspapers c. decrease the supply of newspapers and increase the supply of magazines d. decrease the supply of newspapers and increase the demand for newspapers
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practicefinalexamB - ECON 251 Final Exam Pink Spring...

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