practicefinalexamC

practicefinalexamC - ECON251 FinalExamPink Fall2009(...

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Econ 251 Fall 2009 Final Exam Pink Page 1 of 13 ECON 251 Final Exam Pink Fall 2009 (Practice Final Exam C for Spring 2011) 1. Referring to the table above, what is the marginal cost of orange production for Billie? a. 5/4 of a grapefruit b. 4/5 of a grapefruit c. 1/2 of a grapefruit d. 2 grapefruits 2. Based on the table, Billie has ______________, while Jean has _____________. a. Comparative advantage in producing grapefruit; absolute advantage in producing oranges b. Comparative advantage in producing oranges; comparative advantage in producing grapefruit c. Absolute advantage in producing oranges; comparative advantage in producing grapefruit d. Absolute advantage in producing grapefruit; comparative advantage in producing grapefruit 3. Referring to the same table above, what is the largest quantity of grapefruits that Billie and Jean could produce together if they produce two oranges? a. 5 grapefruits b. 7 grapefruits c. 8 grapefruits d. 9 grapefruits The Following graph describes Marc's PPF and Julian’s PPF. Both of them only produce ice cream and brownies. Ice cream Julian Marc Brownies 4. Given this graph, which of the following is true? Grapefruit Oranges Billie 5 4 Jean 4 8
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Fall 2009 Final Exam Pink Page 2 of 13 a. Julian has a comparative advantage in the production of ice cream b. Marc has a comparative advantage in the production of ice cream c. Marc has an absolute advantage in the production of ice cream d. Julian has absolute advantage in the production of brownies 5. Ann spent $300 on a plane ticket to go to New York City and attend a U2 concert. If the plane ticket is non-refundable, then the $300 paid for the air fare represents a(n): a. Opportunity cost of going to the concert b. Sunk cost c. Implicit cost of going to the concert d. External cost of going to the concert 6. Re-chargeable batteries and cameras are complements in consumption. If the price of rechargeable batteries increases, which of the following will occur? a. The demand for batteries increases b. The demand for batteries decreases c. The demand for cameras decreases d. The demand for cameras increases 7. Software developers are an input in the production of computer software. If the wage paid to software developers increases, which of the following will occur? a. The supply of computer software decreases b. The equilibrium price of computer software decreases c. The equilibrium quantity of computer software increases d. All of the above will occur Use the following equations for the next five problems Demand: P = 16 – 2Q d Supply: P = Q s + 4 8. What are the equilibrium price and quantity? a. Q=4; P=$8 b. Q=4; P =$6 c. Q=6; P =$4 d. Q=8; P=$4 9. What is consumer surplus in this market? a.
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practicefinalexamC - ECON251 FinalExamPink Fall2009(...

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