Turn Off All Cell Phones and other Communication Devices | ECO 2023, Exams of Microeconomics

Download Turn Off All Cell Phones and other Communication Devices | ECO 2023 and more Exams Microeconomics in PDF only on Docsity! Professor: M. Rush ECO 2023 SUMMER B 2OO9 MIDTERM 2 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 all33. Chose the best answer for each question. o The next is important: Unless you are specifically told otherwise, on this test do nof assume that demand or supply is either perfectly elastic or perfectly inelastic. On the bubble sheet, please enter: L. Your name and initials 2. Your UF ID number 3. Special Code: 21 4. Test code: A 5. Sign your name on the back of the bubble sheet. TURN OFF ALL CELL PHONES AND OTHER COMMUNICATION DEVICES Check that the test code, special 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 test 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 joumalism major who could get the special code right at least 30% of the time! \Atrhile I doubt this last rumor, because the special code involves numbers which means it is close to being math, nonetheless I think that the skill of correctly bubbling in the test code and special is not too difficult to acquire. CHECK YOUR TEST CODE AND UF ID NUAABER. IF YOU GET EffHER OF THESE WRON6, yOUR TEST rtt16l-{T NOT BE GRADED AND IF IT ISTGRADED, yOU WILL LOSE 6 POINTS (which eguols 2 guestions)! 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 andbubble in all your answers. When the TAs say that time is up, you musthandin your exam. We will nof give extra time to finish bubbling in the answers, so be sure you are done when the 60 ECO 2023 MIDTERM 2 su/t /t ER B 2009 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. The test scores will be on the Exam 2 Feedback 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@cba.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@cba.ufl.edu If you email me about your test score, I will not forward the email nor respond to you-youMUST 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 L additional question. N A perfectly competitive firm's short-run shutdown point is the le$:ttof output utClosg-which its Y -- 1.- ECO 2023 MIDTERM 2 SUMMER B 2OO9 10) In the above figure, the firm will produce A) 0 units. B) 5 units. C) 15 units f6\ zo units.\,/ 11) A firm's average variable cost is $L0, 500 units. Its total cost is A) less than $20. B) between $21 and fi2,999. C) between $3,000 and $3,011. D) between $3,012 and $3,501. /E\ rnor" than $3,502. \_-7 12) In a perfectly competitive market, after a permanent increase in demand the increase in the equilibrium level of the market output is larger in the _ run. A) short ,6) lone l--/ v C) Both of above because the increase in output is the same in both the short run and long run. D) None of the above because there is no change in output long run. Pra f,vrD A) price equats minimum average total cost. P < lf,g P>AfL.. P p.i." equals minimum average fixed costs. rt) r Atl( , P < Arft price equals the minimum average variable cost. Y / /n" " fD) price is above the minimum average total cost but below the minimum averagev fixedcost. its total fixed cost is $3,000, and its output is AvL =$lb Quontity lunits) TL-- TFGW( TrL-- $3/UW 3,W+TbW &--,rgp TL=7 in either the shoft run or 'f i^V ECO ?O23 MIDTERM 2 sUMMER B 2OO9 13) (This is an out-of-the-book question.) hr the pnncipaT-agent relationship between a college football coach and the players, the coach is C* P"N A) an agent, as are the players. Bl an agent and the players are principals. @)^principal and the players are agents. D) a principal, as are the players. , ,-f \t(q A firm's average total cost is $80, its average variable cost is $50, and its marginal ''F7-' .ost is $60. If the firm increases its ouput, then its average variable cost Q!) increases' P does not change. (C) d".reus"s. D) might increase, decrease or not change but what it does cannot be determined without more information 6 ( Tec ue Capital (units) Labor 'units) W 5 6 X 7 2 Y 5 5 Z ,.39## 9 1. krr=$66 M Y st-' vd / IL= 56x 7F = ugd 6 = lrPF 146 t5w 54y 7/ TC-* lutt 25 1 M @ (This is an out-of-the-book question.) The table above shows techniques that can be used to produce 100 shirts. If the price of an hour of labor is $6 and the price of a unit of capital is $10, then the economically efficient technique is A)W B)X A(9Y D)Z E) Both W and Y 16) Imported goods - the nation's total surplus and exported goods _ the nation's total surplus. ( A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease E) decrease; do not change kvL -- $59 N(( lf{Y rtrc /vlc= s LH les A., AfC',, = ar(m . $ &hsrMc 9n^t'lter ECO 2023 MIDTERA/t 2 sUMMER B 2OO9 Price and cost (dollars per unit) o Qr Qz Qs Quantity (units per hour) 17) In the above figure, if the market is perfectly competitive the price will be _ and if the market is a single-price monopoly the price _. 4Y P, and the quantity will be Qr; Pz and the quantity will be Qz ff nrand the quantity will be Qz; Pzand the quantity will be Qr '. C) Ps and the quantity willbe Qt; hand the quantity will be Qr S>f erand the quantity will be Qz; Pzand the quantity will be Qr C O, and the quantity will be Qz; h and the quantity will be Qr \' 18) In the above figure, if the market is a single-price monopoly the deadweight loss equals the area A) abPt B) cde C) P*tue D\ acPz (E\ )bce\2 19) In the short run, a perfectly competitive firm A) cannot shut down. o B) must eam a normal profit. @ .u., earn an economic profif incur an economic loss, or eam a normal profit. t > AfC= N+D) will not incur an economic loss if it shuts down. E Both answers C and D are correct. 4U > 3F ,, l' }{) luttu't Garage Cleaning is a monopoly firm that currently cleans 40 garages a week. &='lP ./ * lane's;affi:i;r;t -t her price is $40, and her average total cost is $30.Iane NC= $qY A) definitely is maximizing her profit; eaming an economic profit / p^= $tl6 PT detnitely is not maximizing her profit; suffering an economic loss lrr = Q..(f-(CDmight be maximizing her profit; earning an economic profit . / \ tw' {/Y pl might be maximizing her profi! suffering an economic losst@) aun"itely is not maximizingher profit; eaming aneconomic profit n^X p*(,(= ML'IAR Mc=gw 7r\k= ECO ?O23 MIDTERM 2 ! SUMMER B 2OO9 i ]effers< Labor (workers) ln's Cleaners Total product (suits cleaned per day) 0 0 1 T2 2 26 J 46 4 50v a5: 73) 6 84 7 94 tAP= -ryAL fi-Q'fr s-o = /4,L'f,0) Based on the above table, what is the marginal product of the 5th worker hired at /"Y' Iefferson'sCleaners? A) 15 suits per day. @ t+.0 suits per day.(S) 13 suits per day. D) 73 suits per day. )6 e monopolist can / ""As"ll us much as he or she wants at the chosen price because he or she is the only - seller.B) can increase price and quantity sold at the same time. (e)'' can increase price only if he or she is willing to decrease the quantity sold. D) is not restricted by the law of demand. t0 ECO 2023 MIDTERM 2 I sUMMER B 2OO9 ",. /rl{) Fast Copy is a perfectly competitive firm. The figure above shows Fast Copy's / ' average total cost and marginal cost curves. If the price is Le per page, then to maximize its r:rofit Fast Copy will sell _ pages per hour. 6i.o I @tu c) 32 D) More information is needed to determine how many pages Fast Copy will sell. 33) Keeping in mind that you are to email the grader (within 1 week after the test scores are posted) if you have a question about your test score and you are to email me if you have a question about a question, then the director is so fat that when he steps on the scales it says A) "one at a time, please." @ "tobe continued." C) "we don't do livestock." '4. .... 24 32 40 48 56 64 Quontily (poges per hour| oo