Mid1F07 - v1 Name October 10, 2007 First Midterm...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
v1 Name _ October 10, 2007 First Midterm Examination Economics 101 Unless a question explicitly says otherwise, assume that all supply curves slope upward and demand downward. True/False. Mark box A for True box B False. Each correct answer adds 2 points to your score. blank gives you 1 point. 1. If for a good is price elastic, a binding floor leads an increase in consumer expenditure on the good. 2. If a PPF outward bowed, there will be increasing opportunity costs one good, but not other. 3. potato chips Doritos are substitutes, then of cause increase. 4. An corresponds shift of a curve. 5. If, Sally, marginal benefit chocolate bar equal its price, she purchase bar. 6. A subsidy increases consumption creates a deadweight loss. 7. A ceiling always results in a surplus. 8. A buys more when utility positive.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Page # 9. The demand curve for an inferior good slopes upward. 10. An increase in causes consumer expenditure to increase. Multiple Choice. Mark the box corresponding best answer. Each correct answer adds 5 points your score. blank gives you 1 point. 11. A straight-line and outward-bowed PPF differ which of following ways? (a) represents constant opportunity costs, while a straight-line PPF costs zero. (b) increasing (c) costs. (d) (e) decreasing 12. Which correctly describes changes resulting from a shift supply new automobiles? quantity automobiles sold decreases during a recession when people have lower incomes. when a higher tax is imposed on gasoline. due to a wage automobile workers. scientists prove that driving harmful health. law raises the minimum age.
Background image of page 2
3 Page # 13. Which of the following could lead to a decrease in demand for apples? (a) An increase price bananas, a substitute good. (b) Consumers develop new preferences bananas over apples. (c) An cost producing (d) Scientists prove that apples prevent Alzheimer's disease. (e) New apple trees are planted, doubling production. 14. Suppose food products is inelastic. One implication this that: (a) unexpectedly large harvests farmers' revenue even small percentage changes prices will to quantity demanded (c) absolute value elasticity these goods be greater than one droughts reduce have little impact on (e) only demanded. 15. If of a good falls at every as a result an consumers' incomes, then is: inferior (b) a normal ordinary (d) a Giffen (e) a complementary
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 Page # 16. Cod over-fishing in the Baltic Sea is a concern within European Union. The diagram below shows market for cod. Suppose Union issues fewer fishing permits causing supply to decrease and price of cod increase $7/pound. By how much did decrease? P ($) 7 6 5 4 3 2 1 ( a) 70 pounds (b) 30 (c) 15 (d) 60 (e) 55 1 _____ _ L I , , J ------~--------- , I , I I , : J. I I , I ---------i--------- , , I I I I I I S J_________ _ _ L _ ------~---------~---------I--_------~----------~------ " " , I " I I I I I ------:----------, ---------~--------- ---------i------ I 1 I I I j I I I tit , ----- ---------:---------1---------:--------- ---i)-~ I I I I I I I I ------~---------~---------~---------~----------~------ I t I J I I 1 I I I I I I I I 10 25 40 55 70 Pounds of Cod
Background image of page 4
5 Page # 17. The diagram below shows the market for miniature candy bars. Fearing that general public is becoming increasingly unhealthy, government decides to impose a production quota of 80 bars. A result of this policy supply , I _ ____ __ L. 1 1____ __ _ _ . .
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 07/22/2011 for the course ECON 101 taught by Professor John during the Fall '09 term at University of Florida.

Page1 / 17

Mid1F07 - v1 Name October 10, 2007 First Midterm...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online