1_05-02-18Econ1101_2003_Final - FAMILY NAME_ GIVEN NAME_...

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FAMILY NAME________________________ GIVEN NAME_________________________ STUDENT NUMBER___________________________________________ The University of New South Wales School of Economics ECON 1101: Microeconomics 1 Final Exam November 2003 TIME ALLOWED: 2 hours, with 10 minutes reading time This exam comprises three parts Part A: 40 compulsory multiple Choice questions Answer part I in the generalised (computer) answer sheet Part B: One compulsory question Answer part B in a separate examination book Part C: Three questions (to be chosen from five) Answer part C in a separate examination book This examination paper is not to be retained by the candidate Part A begins on the following page. Answers to parts B and C must be written in ink. Pencils may be used only for drawing and graphical work
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2 Econ 1101 Microeconomics I Final Exam Nov 2003 Part A: Multiple Choice Questions (0.75 marks each) Answer this part in the computerised answer sheet. A pencil must be used for the sheet. Ensure that your identification details are filled in. Choose the most correct answer to each question. 1. The marginal benefit of an activity is the a. same as the total benefits of the activity. b. total benefit divided by the level of the activity. c. change in the activity divided by the change in benefits. d. extra benefit associated with an extra unit of the activity. e. little bit of benefit one gets from activities that are healthy but unpleasant. 2. The concept of opportunity cost: a. suggests that when resources are used to produce one good, they cannot be used to produce other goods. b. indicates that scarcity is measured by the monetary sacrifice that must be made to produce something. c. is relevant only in market economies. d. is relevant only in transactions between individuals. e. can be overcome by shifting the production possibilities curve to the right. 3. If one nation can produce a good at a lower resource cost than another nation, then we can confidently say that, with respect to that good, it has a. a comparative advantage b. an absolute advantage. c. comparative and absolute advantage. d. relative advantage. e. none of the above 4. The most reasonable explanation for the upward-sloping supply curve and the law of supply is that: a. the costs of producing additional units increases and thus sellers will only be willing to offer more for sale if the price is higher. b. the good being produced is a necessity and sellers know they can raise prices. c. producers are willing to reduce price only for volume purchases. d. the demand curve for most goods is stationary and rarely moves. e. the increase in price will lead to an decline in demand.
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3 Econ 1101 Microeconomics I Final Exam Nov 2003 5. If the supply curve for motor oil is P = 4*Q, then at a price of $16 the price elasticity of supply is a. 4. b. 1 1/3 c. 1. d. 3/4 e. 0 6. If the supply curve for motor oil is P = 4 + 4*Q, then at a price of $16 the price elasticity of supply is a. 4. b. 1 1/3 c. 1. d. 3/4 e. 0
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This note was uploaded on 10/20/2011 for the course COMMERCE 3502 taught by Professor All during the One '11 term at University of New South Wales.

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1_05-02-18Econ1101_2003_Final - FAMILY NAME_ GIVEN NAME_...

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