45 . 27 . If the demand for this product increases: The quantity is ambiguous and depends upon which effect is stronger. A surplus results. (B) An increase in the price of a substitute for this good. 1) In every economic system, choices must be made because resources A) are limited, and so are human desires and wants. (D) You buy your date dinner, but your date insists on leaving a tip for the server. 43 . i. (C) falls below minimum average variable cost. If the demand for this (C) Nancy is indifferent to both studying and mowing the lawn. Acces PDF Unit 3 Microeconomics Multiple Choice Answers supply for product A is perfectly elastic. If more labor is increasing TPL at a faster and faster rate, MPL is rising. (A) Collusive output levels tend to increase, driving the price above competitive levels. The Khan Academy has a complete online course. Suppose the price elasticity of demand for cigarettes is less than one. If Matt’s total utility from consuming bratwurst increased at a constant rate, no matter how many bratwurst Matt consumed, what would Matt’s demand curve for bratwurst look like? C— Familiarity with cost curves identifies curve 4 as AFC. Which of the following events would tend to cause an increase in demand for economics textbooks? (B) the marginal social cost exceeds the marginal social benefit. Section I of this exam contains 60 multiple-choice questions. Use the table below to determine your grade, remembering these are rough estimates using questions that are not actually from AP exams, so do not read too much into this conversion from raw score to AP score. You cannot have a downward-sloping MR curve here. At the conclusion of the planning time, you have 50 minutes to respond to the following three questions. (E) A local Girl Scout troop is giving a “free” carwash. (E) She should decrease her apple consumption and increase her orange consumption until the marginal utility is equal for both. B— Decreased labor demand lowers wage and employment. Bookmark & Share Embed. Be careful to clearly explain your reasoning and to provide clear labels to all graph axes and curves. (E) The United States has comparative advantage in salmon production, and Peru has absolute advantage in anchovy production. D— Excise taxes shift a supply curve leftward, increase price, and decrease quantity. Microeconomics Re-exam 2015-01-26 Answers Multiple choice section. 49 . (E) Find the combination of labor and capital where the marginal revenue product of labor is equal to the marginal revenue product of capital. 21 . (A) A decrease in the availability of fertile farmland, (C) An increase in the productivity of the labor force, (E) A decline in the rate of technological improvements. TIP 1: On graphing problems, you can lose a point for not indicating which variables lie on each graphical axis. The multiple-choice section consists of 60 questions, each with 5 answer choices. 44 . MCQ quiz on Microeconomics multiple choice questions and answers on Microeconomics MCQ questions on Microeconomics objectives questions with answer test pdf for interview preparations, freshers jobs and competitive exams. The first section contains 60 multiple-choice The chart below provides a detailed breakdown of both the multiple choice and free-response sections. 25 . (E) Air pollution from a power plant is blowing downwind and harming the trees in your community. Part I. 10 . 34 . C— This is a main identifier of oligopoly. The information below applies to AP Microeconomics only. (B) a 10 percent increase in income produces a 15 percent increase in consumption of DVDs. (C) Recommend an appropriate policy that would correct for the misallocation of resources in the pork industry. Do this with arrows or with a clear numbering system like S1 and S2. 1 point: Showing the quantity where MR = MC. E— Like the competitive firm, the monopolist produces where MR = MC, but the P > ATC, which is most likely even further above MR = MC. (C) Find the combination of labor and capital where the marginal product of labor divided by the price of labor is equal to the marginal product of capital divided by the price of capital. E— This is the definition of economics! at restaurants or other part-time jobs. 14 Microeconomics midterm exam multiple choice. Quantity must be less than the market quantity, and price must be higher than the market price. (D) economic profits to rise for all firms. A course in intermediate microeconomics improves scores on the LSAT A— The opportunity cost is the value of the most attractive alternative; in this case, the babysitting wage. Tax the cigarettes that he is smoking. D— If P > ATC, positive short-run economic profits exist. The AP Microeconomics Exam consists of two sections: (1) Multiple-Choice Questions (MCQs) and (2) Free-Response Questions (FRQs). Which of the following is most likely to be true in the long run for a monopoly firm? However, you would likely get a point for a correctly drawn monopoly figure, a price P m that is consistent with the Q m in this figure, and a profit area that is also consistent with Q m and P m . Which of the following events would cause the supply of economic textbooks to increase? Using the diagram above, which of the following might have caused the outward movement of the production possibility frontier? (3) Absolute/Comparative Advantage/Fair Trade. D— Lost CS is a big reason why government keeps an eye on the monopoly power of firms. An industry described as an oligopoly would most likely have. A profit maximizer, he can charge $10 per pool to clean 9 pools per day, incurring total variable costs of $80 and total fixed costs of $20. An excellent collection of AP Microeconomics multiple choice questions. (A) The Reds offer discounted parking for all home games. The exam on Blackboard will randomly select 2 or 3 questions from each pool for each topic covered on an exam. 20 . (B) Consumer surplus falls as the price is driven downward. If total product of labor is rising at an increasing rate. soybeans) that farmers could have grown instead, All points above and to the right of a production possibilities frontier are considered to be, All points underneath a production possibilities frontier are considered to be, The market consists of the interaction of __________ and __________. 31 . (E) average product of labor is at its minimum. (D) The supply of daycare falls, increasing the market price. a. Answer: Again, maybe not, but the rest of your response must be consistent with the incorrectly labeled output. Multiple Choice Questions for Microeconomics (ECN 2103) Multiple Choice Questions Part 1: Introduction (20 May) Multiple Choice Questions Part 2: PPF (23 May) Multiple Choice Questions Part 3: Gains from trade (24 May) Multiple Choice Questions Part 4: Demand and Supply (31 May) Multiple Choice Questions Part 5: Elasticity (11 June) Which of the following is true of monopoly markets? (D) Jason should clean 9 pools per day, with economic losses of $10. 1 point: The market price and quantity identified at the intersection of marginal social benefit and marginal private costs. Introductory Microeconomics (ECON1010) … Which of the following would best complete a short definition of economics? (C) a surplus in the market to be eliminated by falling prices. (C) Identify the profit-maximizing quantities of labor and lemons. Question: So I’ve messed up the monopoly quantity, have I lost all points in part (C)? shifted up and to the right), what would this mean? Nancy has the choice to spend one hour studying for an exam, mowing the lawn for one hour at a wage of $6, or babysitting her niece for one hour at a wage of $8. (C) total revenues from production are equal to implicit costs. Creative Commons Attribution-Sharealike 3.0 Unported CC BY-SA 3.0. (D) the industry expands as firms enter the market. (D) the marginal benefit of the second piece of cake is greater than the marginal cost. Price and quantity in the soybean market. (D) a 10 percent increase in the price of DVDs produces a 15 percent decrease in consumption of DVDs. (E) a surplus of the good always exists without government intervention. 60 multiple choice questions; Free-Response: 60 minutes, 33% of exam score. This is most likely due to. If you do not show your work, you will not earn these points. (A) A decrease in consumer income if this good is normal. 52 . However, be aware that every year the point allocations change and partial credit is awarded differently. ":"&")+"url="+encodeURIComponent(b)),f.setRequestHeader("Content-Type","application/x-www-form-urlencoded"),f.send(a))}}}function B(){var b={},c;c=document.getElementsByTagName("IMG");if(!c.length)return{};var a=c[0];if(! 1 point: Showing Bob producing at the point where ATC is minimized. Which of the following might explain how a price decrease might cause a decrease in quantity demanded and an upward-sloping demand curve? Suppose the price elasticity of supply for a product is zero. Lower incomes and higher unemployment decrease real estate prices. 47 . A perfectly competitive employer hires labor up to the point where. Share this knowledge with your friends! (D) is equal to minimum average total cost. Add the raw scores from the multiple-choice and free-response sections to obtain your total raw score for the practice exam. This means that. If the market for this good was in equilibrium at Q 2 but the socially optimal output was Q 1, the government could best remedy this —— of resources by legislating a —— on —— of the good. (C) a 10 percent increase in income produces a 15 percent decrease in consumption of DVDs. 44 . 1 point: Downward shift in the P = MR curve for Bob’s Beans. D— TR > TVC, so Jason does not shut down. (D) An increase in the price of mechanical painters so long as the output effect exceeds the substitution effect. (E) marginal revenue equaling marginal cost. 11 . B— Cartels are illegal collusive agreements to lower output, raise the price, and maximize joint profits. 1. 48 . (B) dollars spent on this good would decrease if demand for the good were price inelastic. For those students, what is the opportunity costs of attending college? 18 . the resources it has available to it and its level of technology. 55 . 31 . Practice Exam: Last Year's Midterm 1 (Answers) Practice_MT2_econ101_withanswers 4. (C) Firms spend money to differentiate and advertise their products. Suppose the Page 4/10. For this individual, it must be the case that. 24 . E— Entry of new firms takes market share from existing firms, so demand curves begin to shift to the left. (A) In competitive input markets, each hour of labor costs $6 to employ and each pound of lemons costs $2 to employ. If these nations are trading based upon relative opportunity costs, what must be the case? There is a shortage. (D) Quantity rises, but the change in price is ambiguous. 5 . (B) She should increase her apple consumption and decrease her orange consumption until the marginal utility per dollar is equal for both. 17 . When the market price is set __________ equilibrium price, firms will experience a ___________, which creates an incentive for them to _________ prices. Approximately half of your time should be given to the first question, and the second half should be divided evenly between the remaining two questions. If a monopsony labor market suddenly were transformed into a perfectly competitive labor market, how would the wage and employment change? The marginal revenue product of the fourth unit of labor is equal to. If the supply of roses falls, while at the same time the demand for roses rises, what can you say about the price and quantity of roses in the market? the income and work experience they would have earned by beginning their careers earlier. (D) She should increase her apple consumption and decrease her orange consumption until the marginal utility is equal for both. Give a tree subsidy to your neighbor. This is why you remain in the best website to look the amazing book to have. (A) The benefit received from studying is greater than the opportunity cost of $8. B) are unlimited, and so are human desires and wants. (C) The wage would remain constant, but employment would increase. 2 . (B) An effective floor creates a shortage of the good. Test 1 - Extra Sample Multiple Choice Questions for ECON 1141 - post. Which of the following is the best example of a negative externality and the appropriate plan for eliminating it? A lower price increases purchasing power, and for an inferior good, it decreases consumption. (B) monopoly prices ensure productive efficiency but cost society allocative efficiency. [CDATA[ You decide to see the movie with two friends who are willing $10 and $9, respectively, to see the movie. See the table below: AP Microeconomics Exam Past Papers If your graph is the size of a postage stamp, it becomes more difficult for you to identify all relevant parts.
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