2005 - THE UNIVERSITY OF NEW SOUTH WALES SCHOOL OF...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon

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

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

Unformatted text preview: THE UNIVERSITY OF NEW SOUTH WALES SCHOOL OF ECONOMICS SESSION 1,2005 ECONllOl MICROECONOMICS I FINAL EXAMINATION TIME ALLOWED- 2 HOURS THIS PAPER IS WORTH 60% OF THE TOTAL SUBJECT MARK This examination paper consists of two parts - Part A and Part B Part A consists of 20 multiple choice questions each worth one (1) mark. Answer all the questions in Part A on the answer sheet provided, using pencil only: (a) Print your student number, name and initials in the space provided and mark the appropriate boxes below your student number, name and initials. (b) For each question, mark the appropriate response (a), (b), (c), or (d). There is only one correct response to each question in Part A. Part B consists of four (4) essay-type questions, each worth TWENTY (20) marks. Answer only TWO (2) questions from Part B. ANSWER EACH PART B QUESTION IN A SEPARATE EXAMINATION BOOKLET Answers to questions in Part B must be written in ink. Pencil may be used in answers to Part B for drawing, sketching or graphical work only. This question paper may be retained by the candidate PART A This section is worth 20 marks Mark your answer on Answer Sheet provided Question 1 In a perfectly competitive market, the demand curve faced by a typical firm is: (a) Perfectly inelastic at the current market price (b) Perfectly elastic at the current market price (c) Significantly more elastic for price increases than for price decreases (d) Significantly less elastic for price increases than for price decreases. Question 2 A firm operating in a perfectly competitive market will shut down its plant in the short run when: (a) price falls below average cost (b) price falls below average fixed cost (c) price falls below average variable cost (d) price falls below total cost Question 3 Which of the following statements is true? (a) A profit maximising monopolist will always set price and output at a level where demand is price-elastic. (b) A profit maximising monopolist always produces where Average Revenue equals Average Cost (c) A profit maximising monopolist will, in long run equilibrium, always use a scale of plant that minimises long run Average Costs. (d) A profit maximising monopolist will always produce where marginal cost is greater than price. 2 Question 4 Which of the following statements about the Monopolistic Competition market model is true? (a) The market is characterised by a small number of rival firms each selling a slightly differentiated product (b) The typical firm tends to operate with excess capacity and unexploited economies of scale (c) In the long run, surviving firms charge a price which is higher than average cost and make economic profits. (d) The demand for each firm's product is infinitely elastic....
View Full Document

This note was uploaded on 12/31/2011 for the course ECON 1101 taught by Professor Julia during the Three '08 term at University of New South Wales.

Page1 / 11

2005 - THE UNIVERSITY OF NEW SOUTH WALES SCHOOL OF...

This preview shows document pages 1 - 4. Sign up to view the full document.

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