Quiz 2 - February 11 - WITH ANSWERS

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

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Unformatted text preview: 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 1 2 3 7 7 9 19 22 21 29 28 23 25 15 13 11 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 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. 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 D) an increase in the demand for gas-guzzling, sport utility...
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This note was uploaded on 04/07/2008 for the course ECON 304K taught by Professor Ledyard during the Fall '08 term at University of Texas.

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

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