exam1_yellow_key - Exam#1 Principles of Microeconomics Econ1014 Spring 2013 Yellow version I II III IV V

exam1_yellow_key - Exam#1 Principles of Microeconomics...

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1 Exam #1 Principles of Microeconomics – Econ1014 Spring 2013 Yellow version I. Do not open this exam or begin writing until you are told to begin. II. Make sure your student ID and exam version are on your scantron form and your name and student ID are bubbled in before you begin the exam . You will not be given time to do this at the end of the exam. III. Be sure to read directions carefully, use your exam copy to help you solve the problems and transfer all your answers to the scantron form. Only answers bubbled into the scantron form before time is called will be accepted . No work on the exam copy itself will be graded. IV. You will not be given time to fill in any scantron answers after time is called, so make sure to do this before time is called. V. You are allowed to use only a pencil, eraser and ruler for the exam. Any other materials used or in sight are prohibited. In particular, you are NOT allowed the use of a calculator or any translation device. Failure to follow these directions is considered cheating and will result in a grade of zero for this exam. VI. You must stop writing and put down your pen or pencil immediately when you are told it is time to stop the exam. Failure to follow these directions is considered cheating and will result in a grade of zero for this exam.
2 Please choose the best answer possible in each case. Figure A: Market for Cakes Use this graph to answer the following 5 questions. 1. Refer to figure A : According to this graph, if the price of cake is currently $8, producers will want to sell _____ cakes and consumers will want to buy _____ cakes. 1. 10; 30 2. 10; 60 3. 30; 30 4. 30; 60 5. 60; 30 2. Refer to figure A : According to the graph, if producers charge $8 per cake, they will earn total revenue equal to ____ and consumers will have total expenditures equal to _____. 1. $80; $480 2. $480; $480 3. $8; $8 4. $80; $80 5. None of the above 0 2 4 6 8 10 12 14 16 18 20 22 24 26 0 10 20 30 40 50 60 70 80 90 100 110 Market Supply Price ($) Market Demand Quantity
3 3. Refer to figure A : According to this graph, if the price of cake is currently $20, the market will be: 1. Experiencing an excess supply of cakes in the amount of 20 cakes. 2. Experiencing an excess supply of cakes in the amount of 50 cakes. 3. Experiencing an excess demand for cakes in the amount of 30 cakes. 4. In equilibrium. 5. None of the above 4. Refer to figure A : According to the graph, when price rises from $8 to $14: 1. The supply of cakes rises from 10 to 30 cakes. 2. The demand for cakes falls from 50 to 30 cakes 3. Quantity of cake supplied rises from 10 to 30 cakes. 4. All of the above 5. None of the above 5. Refer to figure A : According to this graph, the equilibrium price of cake will be _____ and the equilibrium quantity of cake bought and sold will be ____. 1. $14x30=$420 per cake; 30 cakes 2. $14/30=$0.47 per cake; 30 cakes 3. $14 per cake; 30 cakes 4. Impossible to determine with the information given 5. None of the above 6. In order to achieve production efficiency , an economy must achieve which of the following?

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