Midterm3_2106_04_14_2011_ABCD

Midterm3_2106_04_14_2011_ABCD - Name:...

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Unformatted text preview: Name: ________________________ Class: ___________________ Date: __________ ID: A 1 MT3_2106_Spring_2011: 33 questions at 2 ppts, plus 3 bonus questions at 2 ppts. Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Assume the market for tennis balls is perfectly competitive. When one tennis ball producer exits the market, a. the price of tennis balls increases. b. the price of tennis balls decreases. c. the price of tennis balls does not change. d. there is no longer a market for tennis balls. ____ 2. Today's demand curve for gasoline could shift in response to a. a change in today's price of gasoline. b. a change in the expected future price of gasoline. c. a change in the number of sellers of gasoline. d. All of the above are correct. Figure 4-5 Firm A Firm B ____ 3. Refer to Figure 4-5. If these are the only two sellers in the market, then the market quantity supplied at a price of $6 is a. 2 units. b. 10 units. c. 12 units. d. 22 units. ____ 4. A movement upward and to the right along a supply curve is called a. an increase in supply. b. a decrease in supply. c. a decrease in quantity supplied. d. an increase in quantity supplied. Name: ________________________ ID: A 2 ____ 5. Which of the following is a determinant of the market supply curve but not a determinant of an individual seller’s supply? a. technology b. expectations c. input prices d. the number of sellers ____ 6. If a 10% decrease in price for a good results in a 20% increase in quantity demanded, the price elasticity of demand is a. 0.50. b. 1. c. 1.5. d. 2. Figure 5-4 ____ 7. Refer to Figure 5-4 . If the price decreases in the region of the demand curve between points B and C, we can expect total revenue to a. increase. b. stay the same. c. decrease. d. first increase, then decrease until total revenue is maximized. Name: ________________________ ID: A 3 Table 5-5 Income Quantity of Good X Purchased Quantity of Good Y Purchased $30,000 2 20 $40,000 6 10 ____ 8. Refer to Table 5-5 . Using the midpoint method, the income elasticity of demand for good Y is a. 2.33, and good Y is a normal good. b.-2.33, and good Y is an inferior good. c.-0.43, and good Y is a normal good. d.-0.43, and good Y is an inferior good. ____ 9. Kirsten sells 300 glasses of lemonade at $0.50 each. Her total costs are $125. Her profits are a. $25. b. $124.50. c. $125. d. $150. Table 13-5 The Flying Elvis Copter Rides Quantity Total Cost Fixed Cost Variable Cost Marginal Cost Average Fixed Cost Average Variable Cost Average Total Cost $50 $50 $0-------- 1 $150 A B C D E F 2 G H I $120 J K L 3 M N O P Q $120 R ____ 10. Refer to Table 13-5. What is the value of A? a. $25 b. $50 c. $100 d. $200 Scenario 13-6 A certain firm produces and sells staplers. Last year, it produced 7,000 staplers and sold each stapler for $6. In producing the 7,000 staplers, it incurred variable costs of $28,000 and a total cost of $45,000....
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This note was uploaded on 01/30/2012 for the course ECON 2106 taught by Professor Minjaesong during the Spring '06 term at Georgia Tech.

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Midterm3_2106_04_14_2011_ABCD - Name:...

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