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Final exam – Part 1 – Version A Econ 1 – spring 2007 – Santa Clara University - Ifcher Name: _____________________________________________ Section (circle one): MWF 10:30 a.m. MWF 1:00 p.m. Date: _____________________________________________ Multiple choice (1 point each for a total of 50 points) Identify the letter of the choice that best completes the statement or answers the question. ____ 1. The opportunity cost of an item is a. the number of hours that one must work in order to buy one unit of the item. b. what you give up to get that item. c. always less than the dollar value of the item. d. always greater than the cost of producing the item. ____ 2. When constructing a demand curve, a. demand is on the vertical axis and quantity is on the horizontal axis. b. price is on the horizontal axis and quantity is on the vertical axis. c. price is on the vertical axis and demand is on the horizontal axis. d. price is on the vertical axis and quantity demanded is on the horizontal axis. ____ 3. An increase in demand is represented by a. a movement downward and to the right along a demand curve. b. a movement upward and to the left along a demand curve. c. a rightward shift of a demand curve. d. a leftward shift of a demand curve. ____ 4. Which of the following events would cause a movement upward and to the right along the supply curve for tomatoes? a. The number of sellers of tomatoes increases. b. There is an advance in technology that reduces the cost of producing tomatoes. c. The price of fertilizer decreases, and fertilizer is an input in the production of tomatoes. d. The price of tomatoes rises. ____ 5. The unique point at which the supply and demand curves intersect is called a. market harmony. b. coincidence. c. cohesion. d. equilibrium. Econ 1 – spring 2007 – Santa Clara University – Ifcher – Final exam – Part1 – Version A – page 1 of 13

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Figure 4-9 ____ 6. Refer to Figure 4-9 . In this market, equilibrium price and quantity, respectively, are a. \$15 and 400. b. \$20 and 600. c. \$25 and 500. d. \$25 and 800. ____ 7. If the quantity demanded of a certain good responds only slightly to a change in the price of the good, then a. the demand for the good is said to be elastic. b. the demand for the good is said to be inelastic. c. the law of demand does not apply to the good. d. the demand curve for the good shifts only slightly in response to a change in price. ____ 8. The case of perfectly elastic demand is illustrated by a demand curve that is a. vertical. b. horizontal. c. downward-sloping but relatively steep. d. downward-sloping but relatively flat. ____ 9. A legal maximum price at which a good can be sold is a price a. floor. b.
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