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exam1b

# exam1b - Introduction to Microeconomics Fall 2008 Exam 1...

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Introduction to Microeconomics Fall 2008 Exam 1 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. Figure 2-3 ____ 1. Refer to Figure 2-3 . Inefficient production is represented by which point or points? a. D b. D, E c. A, C d. A, B ____ 2. The invisible hand works to promote general well-being in the economy primarily through a. government intervention. b. the political process. c. people’s pursuit of self-interest. d. altruism. Figure 6-8

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____ 3. Refer to Figure 6-8 . The burden of the tax on sellers is ____ 4. What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell? ____ 5. Russell spends an hour studying instead of playing tennis. The opportunity cost to him of studying is Figure 5-7 ____ 6. Refer to Figure 5-7 . If rectangle D is larger than rectangle A, then a. demand is elastic between prices P 1 and P 2 . b. a decrease in price from P 2 to P 1 will cause an increase in total revenue. c. the magnitude of the percent change in price between P 1 and P 2 is smaller than the magnitude of the corresponding percent change in quantity demanded. d. All of the above are correct. ____ 7. The country of Econoland produces two goods, textbooks and widgets. Last year it produced 200 textbooks and 500 widgets. This year it produced 250 textbooks and 600 widgets. Given no other information, which of the following events could not explain this change? ____
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exam1b - Introduction to Microeconomics Fall 2008 Exam 1...

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