1Exam #1Principles of Microeconomics – Econ1014Spring 2013Yellow versionI.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 formand 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 solvethe problems and transfer all your answers to the scantron form. Onlyanswers bubbled into the scantron form before time is called will beaccepted. 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 iscalled, 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. Anyother materials used or in sight are prohibited. In particular, you are NOTallowed the use of a calculator or any translation device.Failure to followthese directions is considered cheating and will result in a grade of zerofor this exam.VI.You must stop writing and put down your pen or pencil immediately whenyou are told it is time to stop the exam. Failure to follow these directionsis considered cheating and will result in a grade of zero for this exam.
2Please choose the best answer possible in each case.Figure A: Market for CakesUse 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 wantto sell _____ cakes and consumers will want to buy _____ cakes.1.10; 302.10; 603.30; 304.30; 605.60; 302. Refer to figure A: According to the graph, if producers charge $8 per cake, they will earn totalrevenue equal to ____ and consumers will have total expenditures equal to _____.1.$80; $4802.$480; $4803.$8; $84.$80; $805.None of the above024681012141618202224260102030405060708090100110MarketSupplyPrice ($)MarketDemandQuantity
33. 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 above4. 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 cakes3.Quantity of cake supplied rises from 10 to 30 cakes.4.All of the above5.None of the above5. Refer to figure A: According to this graph, the equilibrium price of cake will be _____ and theequilibrium quantity of cake bought and sold will be ____.1.$14x30=$420 per cake; 30 cakes2.$14/30=$0.47 per cake; 30 cakes3.$14 per cake; 30 cakes4.Impossible to determine with the information given5.None of the above6. In order to achieve production efficiency, an economy must achieve which of the following?