Final Exam - Study Questions for Web Site
Multiple Choice
Identify the choice that best completes the statement or answers the question.
_
1. How people choose among the alternatives available to them is:
a. not part of the study of economics.
b. impossib
ECON 2106 Chapter 10
SI date: Thursday 10/07
Next exam 10/14
Use the following to answer question 1:
1. (Table: Utility) The marginal utility for the fifth unit is:
A) 15.
B) 10.
C) 5.
D) 0.
2. If a person's utility function exhibits diminishing marginal
Elasticity
Description
Effect on Quantity demanded-1%
increase in price
Effect on Revenues/Expenditure -1% increase in Price
0
perfectly inelastic
0
increased by 1%
0<e <1
inelastic
reduced by <1%
increased by <1%
1
unitary elasticity
reduced by 1%
unchan
Economics 101
Homework Problems
Problems with answers at the end
Problems only:
1) The governor of Hawaii would like to make single-family apartments more affordable
and considers implementing a perfectly enforced price ceiling at $1,500. You are
hired as
Economics 101
Practice Problems
Answers at end
Problems Only:
1) What is the equilibrium quantity of watches that beep on the hour traded in the
market when the market is described by the demand and supply equations Qd = 200 4P and Qs = 20 + 6P? What is t
Economics 101-300
Practice Problems
Problems:
1)
Recently, the U.S. government granted a $20 million subsidy per jetliner to all
American companies in the jetliner market. The supply and demand curves in the
graph below represent the U.S. market for jetli
1) Suppose that the demand for snow shovels in Ann Arbor satisfies the equation Q d =
300 2P and that the supply of snow shovels satisfies the equation Qs = 150 + 3P.
The market currently is in equilibrium. What is the equilibrium quantity of snow
shovels
Chapter 11:
1.) Government safety nets can short-circuit runs on bank and bank panics, and overcome
reluctance by depositors to put funds in the banking system. Without confidence in the
banking system, such panics could result in a collapse of the financ