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econ 211 test 1 answers

econ 211 test 1 answers - Econ 211 Patrick McLaughlin...

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Econ 211 ANSWER KEY Patrick McLaughlin Test 1 : Choose the correct answer to each question and fill in the corresponding bubble on your answer sheet. There is only one answer to each question. There are 25 questions total; you have until the end of the period to finish. Good luck. 1. If you are currently answering questions at a speed such that the marginal benefits of speed are equal to the marginal costs of speed, then a. You should speed up, because otherwise you might run out of time b. You should slow down because otherwise you might get tired before the end of the exam c. No other speed will yield higher net benefits d. You should go faster because you have nothing to lose by doing so e. Both (b) and (d) are correct 2. Ceteris paribus, an increase in the your income will cause 3. The law of demand tells us that 4. Assume gloves and bats are complements. If a reduction in the supply of gloves causes a rise in the price of gloves, this will cause 5. A store remains open from 8 am to 4 pm each weekday. The store owner is considering staying open an extra hour each evening. The owner’s marginal benefit a. is the benefit the owner receives from staying open from 8 am to 5 pm b. depends on the revenues the owner makes during the day c. must be greater than or equal to the owner’s marginal cost if the owner decides to stay open d. is equal to revenues minus operating costs e. only (a) and (c) are correct
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