ST_1_Fall_05 - Please note that the actual final exam will...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Please note that the actual final exam will have 30 multiple choice questions (30 points) and 11 short answer questions (45 points) for a total of 75 points!! ECON 202 (Intro Micro) SAMPLE FINAL EXAM: This sample test has 35 multiple choice questions and 14 short answer questions. Please remember that this test is longer than the actual final will be. Multiple Choice Section Answer All Questions 1. A firm's demand curve for labor shifts when the a. price of its output changes. b. wage rate changes. c. number of available workers changes. d. All of the above are correct. 2. The labor supply curve starts to bend backward at the point where a. the total utility of leisure exceeds the total disutility of labor. b. the marginal utility of additional income becomes zero. c. the income effect comes to dominate the substitution effect. d. the substitution effect comes to dominate the income effect. 3. In which labor market would one most likely find decent wages, attractive fringe benefits, and long-term career prospects? a. the labor market b. the primary labor market c. the secondary labor market d. the exceptional labor market 4. Under a regressive tax, the fraction of income paid in taxes a. rises as income rises. b. is unchanged as income changes. c. falls as income rises. d. is proportional to the change in income. 5. When a product has very few substitutes, the burden of a tax falls mainly on a. producers. b. consumers. c. tax collectors. d. people who drop out of the market. 6. Displayed below is the payoff matrix of firm A for four different strategies, A1, A2, A3,and A4, and the potential retaliatory responses of firm B (B1, B2, B3, B4). B1 B2 B3 B4 A1 100 50 25 10 A2 10 60 150 200 A3 50 75 200 250 A4 30 50 100 150 If firm A uses the maximin criterion, which strategy will it choose? a. A1 b. A2 c. A3 d. A4
Background image of page 1

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

View Full DocumentRight Arrow Icon
7. At any given airport, the airlines hold long-term leases for passenger loading gates. New gates cannot be added without approval of the airlines. Frequent flier programs are also common in the industry. It is, therefore, more difficult for a new airline to enter a given airport (market). Such factors: (i) are called barriers to entry. (ii) tend to decrease competition in the air travel market. a. i and ii b. i not ii c. ii not I d. neither i nor ii 8. The marginal revenue curve for a monopolist is a. always above the demand curve. b. generally below the average cost curve. c. always above the average revenue curve. d. always below the average revenue curve. 9. Wendy retails motor homes, which she buys for a sum that does not vary with the number she purchases from the manufacturer. She can sell six per week at $20,000. If she limits sales to five, she can charge $21,000 each. She will sell six per week if the cost of each vehicle is no more than a. $20,000. b.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/14/2012 for the course ECON 201 taught by Professor Witte during the Spring '08 term at Northwestern.

Page1 / 12

ST_1_Fall_05 - Please note that the actual final exam will...

This preview shows document pages 1 - 3. Sign up to view the full document.

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