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Unformatted text preview: --------------------------Professor Carolyn Tuttle Economics 110-4 November 9,2007 Fall 2007 EXAMINAnON II-i Instructions: Attempt to answer all questions. Make sure your answer is unambiguous for grading. Questions 1-15 are multiple choice, and there is only one correct answer. Circle the best answer for each question. Each question is worth 4 points. Questions 16-19 are essay and problem solving questions. Answer ONLY 2 of the 4 questions. Write clearly, label graphs and be concise. Each essay and problem solving question is worth 20 points. Total points for the exam are 100. If you have time, try the extra credit problem which is worth a total of 10 extra points. Good luck! Name: Total Points: Grade: 1. If, when the price of cashews per pound rises from $6.99 to $7.99, the quantity demanded decreases from 500 pounds to per month to 300 pounds per month, then the demand for cashews in this market is a. perfectly elastic b. elastic c. unit elastic d. inelastic 2. An unemployed person is said to be frictionally unemployed if a. he/she is temporarily laid-off b. he/she has quit hislher job to look for a better one c. he/she has given up looking for a job because they are discouraged d. he/she does not have the necessary skills for the jobs that are available 3. During a period of inflation, generally among the losers would be a. savers b. retired people on pensions c. holders of fixed-dollar financial assets d. all of the above 4. When economists discuss real income they mean a. the purchasing power of income b. income measured in constant dollars c. nominal income adjusted for inflation d. all of the above 5. Microeconomists define Utility as a. the usefulness of a good b. the relative scarcity of a good c. the satisfaction derived from a good d. the demand for a good 6. If the price ofa good increases, individuals buy less...
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