First Exam Fall 2010

First Exam Fall 2010 - First Exam Fall 2010 Version #1...

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Unformatted text preview: First Exam Fall 2010 Version #1 Student: ___________________________________________________________________________ 1. A market in which finished goods and services are exchanged is a: A. Financial market B. Intermediate-goods market C. Factor market D. Product market Figure 3.1 - Shifts of supply and demand Answer the indicated question(s) by selecting the letter of the following diagrams showing supply and demand shifts that best represent the effect of each event on the relevant market, ceteris paribus . 2. Refer to Figure 3.1. Consider the market for pecans. Many pecan trees are destroyed by webworms. A. A B. B C. C D. D Figure 3.1 - Shifts of supply and demand Answer the indicated question(s) by selecting the letter of the following diagrams showing supply and demand shifts that best represent the effect of each event on the relevant market, ceteris paribus . 3. Refer to Figure 3.1. Consider the market for laptop computers. There is a decrease in the price of computer microchips. A. A B. B C. C D. D 4. Refer to Figure 3.1. Consider the market for desktop computers. Consumers decide they like laptop computers better than desktops. A. A B. B C. C D. D 5. Refer to Figure 3.1. Consider the market for DVD players. People prefer watching movies on DVDs at home instead of going to the movie theater. A. A B. B C. C D. D Table 4.1 - Utility schedule Complete the table and then use the information to answer the question(s) below. 6. In Table 4.1, the total utility when two units are consumed is: A. 12 B. 20 C. 30 D. 44 7. In Table 4.1, the total utility when four units are consumed is: A. 57 B. 52 C. 8 D. 5 8. In Table 4.1, the marginal utility of the third unit is: A. 5 B. 8 C. 12 D. 52 9. The market demand curve is calculated by: A. Summing the price from individual demand curves B. Averaging the price demanded from individual demand curves C. Summing the quantities demanded from individual demand curves D. Averaging the quantities demanded from individual demand curves Figure 1.1 - Production possibilities curve 10. Society is producing the maximum potential output, given its existing resources and technology. Select the appropriate point. (See Figure 1.1.) A. A B. B C. C D. D 11. Society might be able to produce this combination if new resources were discovered but cannot produce it with current resources. Select the appropriate point. (See Figure 1.1.) A. A B. B C. C D. D 12. Society is employing some of the available technology but not all of it. Select the appropriate point. (See Figure 1.1.) A. A B. B C. C D. D 13. If demand is elastic, then: A. Quantity demanded is not very responsive to changes in price B. Quantity demanded is very responsive to changes in price C. Consumer spending does not respond to changes in income D. Total revenue falls in response to a price decrease 14. As more labor is hired in the short run, diminishing returns are observed because: A. The new workers are lazy B. The new workers have less capital and land to work withB....
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This note was uploaded on 02/13/2012 for the course ECON 224 taught by Professor Ozturk during the Spring '09 term at South Carolina.

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First Exam Fall 2010 - First Exam Fall 2010 Version #1...

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