Quiz 2 - February 11 - WITH ANSWERS

Quiz 2 - February 11 - WITH ANSWERS - 304K Introduction to...

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304K: Introduction to Microeconomics // unique  33685 Quiz #2 – February 11 1.Please pay attention when filling in the scantron ! 1.20 questions, 20 minutes. No going back to any  question. 1.Typically: the results and an answer sheet are posted  before the next class day, when  some of  the results will

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1 2 3 7 7 9 19 22 21 29 28 23 25 15 13 11 0 10 20 30 Frequency 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 score Grade Distribution & Statistics Mean=71.26; Standard Error=1.07 Confidence Interval for the mean=[69,73] Average=71.26 A B C
Question 1 If there exists a shortage in the market for snowmobiles, then  the price of a snowmobile will A)    neither rise nor fall B)    rise (97%) C)    fall D)    at first fall then rise Question 2 The price of a gallon of milk falls. Which of the following is a  possible cause?  A)    A discovery that milk cause diabetes (41%) B)    milk is a normal good and people's incomes rise C)    a decrease in the price of oatmeal, a complement to milk D)    a drought that reduces supplies of feed grains fed to cows  that        produce milk Question 2: options B and D produce the opposite effect (a rise in the price of milk) For option C , complements means negative cross-elasticity and thus a decrease in price means a positive increase in quantity demanded. Yet like for B and D, an increase in the quantity demanded means higher price, not lower.

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Question 3 Which of the following shifts the supply curve for gasoline  rightward?  A)   an increase in the price of gasoline  B)   a decrease in the price of a resource used to produce  gasoline, such           as crude oil (72%)  C)   a situation in which the quantity demanded exceeds the  quantity        supplied
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