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` Econ 202 Principles of Microeconomics - Spring 2014 Last Name: _____________________________ University of Mississippi First Name: _____________________________ Prof. David Fragoso Gonzalez ID #: ___________________________________ Final Exam (Practice Version) Instructions - TIME: You have two (2) hours to complete the test. No extra time will be allowed. - FORMAT: o There are 60 multiple choice questions, numbered 1-60, each worth 1.25 points for a total of 75 points. o There are 5 “fill in the blanks” questions numbered 61-65. If you clearly identify your calculations and explain your steps, you can get partial credit even if your answers are wrong. These questions are worth a total of 25 points. o There are no extra-credit questions. - SCANTRON: Please place your answers to the multiple choice questions on a scantron (form no. 16485, the Purple form), which you provide. Be sure to fill in your name and ID number (and bubble them on your scantron). - CALCULATOR: You may use a simple calculator, with no storage function. You may not use your phone as a calculator. - SCRAP PAPER: Do not use your own scrap paper. Instead, use the last sheet of this booklet. If you need more paper, raise your hand and I will bring it to you. - APPEALS: If you believe that a question is ambiguous, that there are no correct answers for some question, or that more than one answer is correct, briefly state so in the lines provided below these instructions. - FINISH: When you finish the test, please return the complete test booklet and your scantron. - CONDUCT: Please abide by the University’s policy on Academic Conduct and Discipline. Cheating will be severely punished. - GOOD LUCK! Appeals ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________1. (1.25 pts) Denise decides to spend three hours working overtime rather than watching a video with her friends. She earns $10 an hour. Her opportunity cost of working is a. the $30 she earns working. b. the $30 minus the enjoyment she would have received from watching the video. c. the enjoyment she would have received had she watched the video. d. nothing, since she would have received less than $30 of enjoyment from the video. 2. (1.25 pts) Consider the graph below, where the production possibilities frontier for two countries, Genovia and Florin, is represented. Which of the following is true? a. Genovia has the comparative advantage in the production of both goods. b. Florin has the comparative advantage in the production of both goods. c. Genovia has the comparative advantage in the production of cars, while Florin has the comparative advantage in the production of electronic goods. d. Genovia has the comparative advantage in the production of electronic goods, while Florin has the comparative advantage in the production of cars. 3. (1.25 pts) Specialization and trade a. can only occur in a country if that country has an absolute advantage in some good. b. allow a country to consume outside its PPF. c. shift the PPF to the right. d. shift the PPF to the left. 4. (1.25 pts) The production possibilities frontier is used to illustrate some basic economic ideas, including a. scarcity. b. opportunity cost. c. economic growth. d. All of the above are correct. 5. (1.25 pts) When economists make a. positive statements, they are speaking not as policy advisers but as scientists. b. positive statements, they are speaking not as scientists but as forecasters. c. normative statements, they are speaking not as policy advisers but as scientists. d. normative statements, they are speaking not as policy advisers but as model-builders. 6. (1.25 pts) An increase in the price of a good will a. increase demand. b. decrease demand. c. increase quantity demanded. d. decrease quantity demanded.7. (1.25 pts) Which of the following would shift the demand curve for gasoline to the right? a. a decrease in the price of gasoline b. an increase in consumer income, assuming gasoline is a normal good c. an increase in the price of cars, a complement for gasoline d. a decrease in the expected future price of gasoline 8. (1.25 pts) If an increase in income decreases the demand for a good, then the good is a(n) a. substitute good. b. complementary good. c. normal good. d. inferior good. 9. (1.25 pts) You wear either shorts or sweatpants every day. You notice that sweatpants have gone on sale, so your demand for a. sweatpants will increase. b. sweatpants will decrease. c. shorts will increase. d. shorts will decrease. 10. (1.25 pts) Holding all other things constant, a higher price for ski lift tickets would a. increase the number of skiers. b. increase the price of skis. c. decrease the number of skis sold. d. decrease the demand for other winter recreational activities. 11. (1.25 pts) If Miguel expects to earn a higher income next month, he may choose to a. save more now and spend less of his current income on goods and services. b. save less now and spend more of his current income on goods and services. c. decrease his current demand for goods and services. d. move along his current demand curves for goods and services. 12. (1.25 pts) The law of supply states that, other things equal, when the price of a good a. falls, the supply of the good rises. b. rises, the quantity supplied of the good rises. c. rises, the supply of the good falls. d. falls, the quantity supplied of the good rises. 13. (1.25 pts) Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market? a. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. b. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. c. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. d.


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Ole Miss ECON 202 - Final Exam

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