Samp_Exam2

# Samp_Exam2 - SAMPLE EXAM 2(This sample exam has a lot of...

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SAMPLE EXAM 2 (This sample exam has a lot of choices to give you practice – however the actual exam will have limited choice) ECON 80A Professor: Paroma Sanyal Microeconomic Theory Sachar 126 Brandeis University (781) 736-2268 Srping 2009 [email protected] NAME : Total 100 points Time : 2hrs Section 1: Multiple Choice Questions (2 points each) (10 Points) Please answer all questions in this section. Write your name and ID number clearly on Page 1 and on your blue books. Circle your answers (in pen) on the question paper (pg. 1 & 2) and put hand these two pages along with your blue book. NO CALCULATORS ALLOWED. 1.If the variable cost curve is a straight line then A) the marginal cost curve will be U-shaped. C) the marginal cost curve will be horizontal. B) the marginal cost curve may be U-shaped. D)none of the above. 2. Output for a simple production process is given by Q = 2KL, where K denotes capital, and L denotes labor. The price of capital is \$25 per unit and capital is fixed at 8 units in the short run. The price of labor is \$5 per unit. What is the total cost of producing 80 units of output? A) \$525 B) \$200 C) \$233 D) \$185 E) none of the above 3. A production function for which proportional changes in all inputs leads to a more-than-proportional change in output is said to exhibit A) diminishing returns. C) constant returns to scale. B) decreasing returns to scale. D) increasing returns to scale. 4. In a short-run production function before diminishing returns set in, A) both MP L and AP L will have positive slopes and MP L will lie above AP L . B) both MP L and AP L will have positive slopes and AP L will lie above MP L . C) both MP

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Samp_Exam2 - SAMPLE EXAM 2(This sample exam has a lot of...

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