Econ_198_Aut_05_Exam__1 - Introduction to Microeconomics...

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Introduction to Microeconomics Allen R. Sanderson Economics 19800 Autumn 2005 FIRST HOUR EXAMINATION Name (Please Print): ______________________________________ [39 Points Possible] Part I. Multiple Choice. Circle letter corresponding to your answer. One point each; 18 points total. 1. The ultimate cost of any choice or action is: a. the amount of money expended, minus the benefits received, to obtain a particular good or service. b. all of the other possible options given up to have a particular good or service. c. the cost of not doing all of the things one would like to do. d. how much time and money it takes to consume something. e. the highest-valued alternative forgone. 2. At which one of these groups/pairings of Chicago-area department stores would one expect the income elasticity of demand to be the smallest? a. Wal-Mart or Target b. Marshall Fields (soon to be Macys) or Carson-Pirie-Scott c. Sears or J.C. Penneys d. Saks or Lord & Taylor e. Nordstroms or Bloomingdales 3. Which of the following would not increase/decrease the demand for a U of Chicago education? a. a decrease (or an increase) in tuition b. a change in the cost of attending Washington University, Northwestern, Michigan or MIT c. increased – or decreased – recruitment efforts and spending by our Admissions Office d. a change in the size of the 16-18 year-old cohorts e. a lingering recession 4. An elasticity is the ratio of: a. price changes to quantity changes. b. total revenue to price. c. two percentage changes. d. the quantity of a good to its price. e. how much of a particular good/service can be produced, divided by the cost of producing it. 5. The PPF is bowed outward because: a. it separates the attainable from the unattainable. b. that is the best way to illustrate tradeoffs. c. it is a convenient – and necessary – way to distinguish efficiency vs. equity in production. d. resources are not equally productive in all activities. e. in a given population, tastes and preferences are not identical across individuals. 6. When the opportunity cost of a good rises, people buy less of it and more of other goods. We refer to this as:
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This test prep was uploaded on 04/07/2008 for the course ECON 198 taught by Professor Sanderson during the Spring '08 term at UChicago.

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Econ_198_Aut_05_Exam__1 - Introduction to Microeconomics...

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