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Unformatted text preview: Name Test Form A Economics 1 Quiz 1 October 20, 2010 True-False Questions: Fill in Bubble A for True, Bubble B for False. 1. Inferior goods are an exception to the Law of Supply. 2. For the outcome of trade to be efficient, buyers with the highest buyer value must buy from sellers with the lowest seller cost. 3. If Juanita is spending her income to maximize her utility, the marginal utilities from all the goods she consumes must be equal. 4. If the demand for avocadoes is price elastic, an unusually large avocado harvest means that avocado farmers will have higher revenue than usual. 5. In a competitive equilibrium, buyers with high buyer values pay the same price as buyers with low buyer value. Multiple Choice Questions 6. At the beginning of this year’s baseball season, Khalil bought a ticket for the Giants’ final regular season game. He paid $25 for the ticket. It is now the day before that game, and the Giants are tied with the Padres for first place in the National League West. Khalil knows he can sell his ticket today for $100. What is Khalil’s opportunity cost of attending the Giants’ final regular season game? (a) Zero (b) $25 (c) $75 (d) $100 (e) $125 Economics 1 2 7. In the farmer’s apple market, buyers can buy just one bushel of apples, and sellers can sell just one bushel. Ten buyers have a buyer value of $40, ten buyers have a buyer value of $30, and ten buyers have a buyer value of $20. Fifteen sellers have a seller cost of $15, and fifteen have a seller cost of $25. In a competitive equilibrium in the farmer’s apple market, howhave a seller cost of $25....
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