20072 - The University of New South Wales School of...

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The University of New South Wales School Economics ECON 1101 MICROECONOMICS I Final Examination November 2007 Time Allowed: Two (2) Hours This paper is worth 60% of the total course mark This exam is comprised of Two Parts. Part A - 20 Multiple-choice questions - worth 1 mark each. Answer all questions. Answer this Part on the Computer Answer Sheet. Part B - Four short-answer/essay type questions - worth 20 marks each. Only answer Two (2) of these questions Write in the answer books provided. Answer each question in a separate book. Indicate the question number in the space provided on the cover of the answer book. This paper may be retained by the candidate. Answers to Part B must be written in ink. Except where they are expressly required, pencils may be used only for drawing, sketching or graphical work. /?/?s
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Part A - 20 Multiple Choice Questions You should attempt all Questions. Select the best answer from the alternatives provided. Any double answers will count as being incorrect. No marks will be deducted for an incorrect response. Answer must be written in pencil on the Computer Answer Sheet. Write your name and Student 10 number in the spaces provided. 1) The short-run market supply curve for a perfectly competitive market is the A) horizontal sum of each firm's AVC curve that lies above MC. B) vertical sum of each firm's MC curve that lies above AVC. C) horizontal sum of each firm's MC curve that lies above AVC. D) vertical sum of each firm's AVC curve that lies above MC. 2) As firms leave an industry because they are incurring an economic loss, the economic loss of each remaining firm A) decreases and the price of the product falls. B) increases and the price of the product rises. C) increases and the price of the product falls. D) decreases and the price of the product rises. 3) In a perfectly competitive market with no external economies or diseconomies, an increase in market demand will A) have no effect on price since firms are price takers. B) generate long-run economic profits for the firms in the industry. C) raise the price in the short run and attract new firms in the long-run. D) raise the price in the short run and the long-run. 4) If a monopoly were regulated so that a socially efficient solution prevails, production would be set at the point where A) the MC curve intersects the AVC curve B) the MC curve intersects the ATC curve C) the MC curve intersects the AR curve D) the MC curve intersects the MR curve 2
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5) Any attempt to capture a consumer surplus, a producer surplus, or an economic profit is called A) efficiency gain.
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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.

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20072 - The University of New South Wales School of...

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