Professor M Rush ECO 2023 Fall 2012 MIDTERM 1 On campus and in state 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 Choose 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 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 I have heard a rumor that the ability to correctly record these had been mastered by a few students at FSU as well as a couple of accounting and journalism students I will investigate these rumors but in the meanwhile 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 WILL LOSE 6 POINTS which equals about 2 questions TURN OFF ALL CELL PHONES AND OTHER COMMUNICATION DEVICES You may not use a cell phone a Blackberry or any other sort of device that allows for communication as your calculator 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 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 E C O 2 0 2 3 M I D T E R M 1 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 01 2 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 class web page after all Study Abroad students have taken it The test scores will be on 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 1 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 01 2 1 If the demand curve for a good is a downward sloping straight line the demand for the good will be more price elastic the higher is the price of the good price of substitutes income of consumers income elasticity of demand for that good 2 A hurricane sweeps through a city and destroys a substantial portion of available housing The hurricane increases the demand for housing and the demand curve shifts rightward decreases the demand for housing and the demand curve shifts leftward increases the supply of housing and the supply curve shifts rightward decreases the supply of housing and the supply curve shifts leftward Both answers A and D are correct 3 Increasing opportunity cost occurs along a production possibilities frontier because resources are not equally productive in all activities increasing wants need to be satisfied in order to produce more of one good decreasing amounts of another good must be sacrificed production takes time A B C D A B C D E A B C D 4 The above figure shows the market for pizza Pizza and hamburgers are substitutes for consumers Which panel shows the effect of a rise in the price of a hamburger A B C D Figure A Figure B Figure C Figure D 3 E C O 2 0 2 3 M I D T E R M 1 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 01 2 5 Plywood is used in the construction of houses If the price of plywood rises then the price of a house and the equilibrium quantity of houses 6 This is an out of the book question According to Utilitarian principles first discussed in the nineteenth century fairness implies rises increases does not change decreases falls decreases rises does not change rises decreases equality of outcome equality of opportunity winner takes all maximizing consumption minimizing deadweight loss Point Production chocolate bars Production cans of cola 0 10 20 30 40 100 90 70 40 0 A B C D E 7 The above table shows production points on Sweet Tooth Land s production possibilities frontier What is the opportunity cost of one chocolate bar if Sweet tooth Land moves from point C to point D 3 5 cans of cola 1 1 3 chocolate bar 3 cans of cola 40 cans of cola More information is needed to answer the question 8 The price of DVD players fell over the past decade because a combination of improving technology rising incomes and falling prices of DVD discs caused the demand curve for DVD players to shift rightward faster than the supply curve of DVD players shifted rightward supply curve of DVD players to shift rightward faster than the demand curve for DVD players shifted rightward supply curve of DVD players to shift rightward and the demand curve for DVD players to shift leftward demand curve for DVD players to shift leftward and the supply curve …
View Full Document
Unlocking...