midterm2practice

# Midterm2practice - Version#2 1 Assume that Dusty has \$30 in income the price of a loaf of bread is \$1.50 and the price of a jar of peanut butter is

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Version #2 1. Assume that Dusty has \$30 in income, the price of a loaf of bread is \$1.50, and the price of a jar of peanut butter is \$3. Dusty can buy a maximum of _____ loaves of bread or a maximum of _____ jars of peanut butter. A. 10; 5 B. 10; 20 C. 15; 15 D. 20; 10 2. Which of the following factors of production is likely to be fixed in the short run? A. The amount of electricity consumed. B. The number of employee-hours. C. The amount of paper used. D. The location of the firm. 3. You are trying to decide how to spend your last lunch dollar. You should use that dollar to buy more of A. the item that will give you the greatest marginal utility per dollar spent. B. the item from which you have gained the greatest total utility already. C. the item that you have already consumed the most of. D. the item that costs the least. 4. Suppose 30 employee-hours can produce 50 units of output. Assuming the law of diminishing marginal returns is present, to produce 100 units of output will require A. a total of 60 or less employee-hours. B. an additional 30 employee-hours. C. more than 30 additional employee-hours. D. less than 30 additional employee-hours.

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## This note was uploaded on 08/02/2011 for the course ECON 1 taught by Professor Tang during the Spring '08 term at UCSD.

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Midterm2practice - Version#2 1 Assume that Dusty has \$30 in income the price of a loaf of bread is \$1.50 and the price of a jar of peanut butter is

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