Professor M Rush ECO 2023 FALL 2012 MIDTERM 2 On Campus Exam Read all instructions on this page This test is governed by UF s academic honesty code It is intended to have 33 multiple choice questions Please check to be sure your copy has all 33 Chose the best answer for each question The next is important Unless you are specifically told otherwise on this test do not assume that demand or supply is either perfectly elastic or perfectly inelastic On the bubble sheet please enter 1 Your name and initials 2 Your UF ID number 3 Form code A 4 Sign your name on the bubble sheet TURN OFF ALL CELL PHONES AND OTHER COMMUNICATION DEVICES Check that the form code and UF ID number you bubbled in are correct now Also check to be sure your name is correct do it now As I said on the last exam I heard rumors that the ability to correctly record the form code has been mastered by a few students at FSU I am still checking this out But in the meanwhile a friend told me that accounting majors have been known to be able to record this letter often correctly Plus I have heard of one journalism major who could get the UF ID right at least 30 of the time While I doubt this last rumor because the UF ID involves numbers which means it is close to being math nonetheless I think that the skill of correctly bubbling in the form code and the UF ID is not too difficult to acquire CHECK YOUR FORM CODE AND UF ID NUMBER IF YOU GET EITHER OF THESE WRONG YOUR TEST MIGHT NOT BE GRADED AND IF IT IS GRADED YOU MIGHT LOSE 6 POINTS which equals 2 questions I have become increasingly concerned that some students are at a real disadvantage because they are unwilling to ask questions during the exam while others ask a lot of questions Hence to level the playing field I have decided to eliminate all questions during the test I don t like this policy but it seems the fairest policy Do not ask questions of me or the TA s in the interest of fairness I have instructed them not to answer any questions during the exam E C O 2 0 2 3 M I D T E R M 2 O N C A M P U S A N D I N S T A T E V E R S I O N F A L L 2 0 1 2 You will have one hour 60 minutes to complete the exam and bubble in all your answers When the TAs say that time is up you must hand in your exam We will not give extra time to finish bubbling in the answers so be sure you are done when the 60 minutes are up Of course you may hand in your test at any time before the 60 minutes are up An answer key will be posted on the main class web page later this evening at about 10 00 PM The test scores will be on the class web page within a few days Once you see the answer key you might have a question about why one answer is right and another is wrong For these questions email me at mark rush warrington ufl edu Do NOT email the grader about these questions After the scores are posted if you think your posted score is incorrect then email the grader at eco2023 grader warrington ufl edu If you email me about your test score I will not forward the email nor respond to you you MUST email the grader You have one week after the curved score is posted to request a grade check After a week the score will not be changed If the web reports what you bubbled in for each question and you ask the grader to check an answer because you believe you bubbled in something other than what is reported and the reported answer on the web is correct you will lose 1 additional question 2 E C O 2 0 2 3 M I D T E R M 2 O N C A M P U S A N D I N S T A T E V E R S I O N F A L L 2 0 1 2 1 Gil can consume either pens or milkshakes Both pens and milkshakes sell for 3 Gil finds that when his income is spent his marginal utility of pens will be 10 while his marginal utility of milkshakes will be 8 Gil could increase his utility without violating his budget by consuming A more pens and fewer milkshakes B more pens and more milkshakes C fewer pens and fewer milkshakes D fewer pens and more milkshakes E None of the above answers are correct because the price of the pen and milkshakes is the same 2 Which of the following is true for a single price monopolist A P MR B P MR C P MR D P elasticity of demand E None of the above answers are correct Output Total Cost units per hour dollars per hour 0 1 2 3 4 5 6 4 00 12 00 18 00 22 00 24 00 30 00 40 00 3 In the above table the firm s fixed cost when it produces 4 units of output is A 3 00 B 6 00 C 24 00 D 4 00 E More information is needed to answer the question 4 A perfectly competitive firm uses only capital and labor to produce its output Barriers to entry A apply to both capital and labor B apply to labor but not to capital C apply to capital but not to labor D do not exist 3 E C O 2 0 2 3 M I D T E R M 2 O N C A M P U S A N D I N S T A T E V E R S I O N F A L L 2 0 1 2 5 The figure above shows Bobby s budget line The price of a can of cat food is 2 Bobby s income per week is A 10 B 40 C 56 D 160 E More information is needed to answer the question 6 A firm s average cost is 50 its fixed cost is 200 and its output is 10 units Its variable cost is A less than 20 B between 21 and 100 C between 101 and 200 D more than 201 7 A perfectly competitive firm incurs an economic loss but continues to operate if A P ATC B P ATC and P AVC C P ATC and P AVC D None of the above because whenever a firm incurs an economic loss it closes 8 Which of the following results in a parallel shift outward of your indifference curves between gasoline and movie rentals A Any decrease in the prices of gasoline and movie rentals B An equal percentage decrease in …
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