UA EC 110 - SAMPLE FINAL EXAM (11 pages)

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SAMPLE FINAL EXAM



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SAMPLE FINAL EXAM

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Pages:
11
School:
University of Alabama
Course:
Ec 110 - Prin of Microeconomics

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Principles of Microeconomics EC 110 SAMPLE FINAL EXAM ANSWERS TO MULTIPLE CHOICE QUESTIONSARE AT THE END OF THE EXAM If you find what you believe is an error in the answer key please let me know Name Student Number 1 Suppose a firm in a perfectly competitive market produces and sells 8 units of output and has a marginal revenue of 8 00 What would be the firm s total revenue if it instead produced and sold 4 units of output A 4 B 8 C 32 D 64 2 For a monopoly when does marginal revenue exceed demand A When output is less than profit maximizing output B When output is greater than profit maximizing output C Never D None of the above 3 When there is a surplus in a market A there is downward pressure on price B there is upward pressure on price C the market could still be in equilibrium D there are too many buyers chasing too few goods 4 Marginal cost is the change is cost that results from a one unit increase in A price B cost C output D revenue 5 If an increase in the price of gasoline increases the demand for gas electric hybrid cars then A hybrid cars are an inferior good B gasoline and hybrid cars are complements in consumption C gasoline is an inferior good D gasoline and hybrid cars are substitutes in consumption 6 In the above figure at a price of 5 the firm s output would be units and it would A 12 incur an economic loss B 5 shutdown C 16 breakeven D 12 breakeven 7 In order to be successful a cartel must A find a way to encourage members to produce more than they would otherwise produce B agree on the total level of production for the cartel but they need not agree on the amount produced by each member C agree on the total level of production and on the amount produced by each member D agree on the prices charged by each member but they need not agree on amounts produced 8 Which of the following is correct about firms in an oligopoly A Each firm has complete control over its own selling price B All firms independently charge monopoly prices C No one firm



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