Sample Midterm for Microeconomics Essay

2529 Words 11 Pages
CONCORDIA UNIVERSITY Department of Economics

ECON 201
Instructor: Ivan Tchinkov
Exam duration: 60 min.

Version 1 Instructions: 1. Write your answers on the IBM SHEET ONLY. 2. Use a PENCIL. 3. Put your NAME and ID on the IBM sheet. 4. Put the EXAM VERSION on the top right corner of the IBM sheet.

Multiple Choice Questions (2 marks each).
1. Which of the following statements is correct for a society that emphasizes the production of capital goods over consumer goods? A) The society could enjoy the same quantity of capital goods and a larger quantity of consumer goods in the future. B) The society would have to save more now than a society
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17. In figure 3.4, what are the implications if the price of this product is $14? A) The price would be below equilibrium. B) There would be a shortage of 600 units. C) There would be a shortage of 1200 units. D) There would be a surplus of 600 units.

18. In figure 3.4, if the price of the product is $14, how many units would be sold? A) 400 units. B) 600 units. C) 800 units. D) 1,000 units.

19. In figure 3.4, what is the minimum price at which the quantity sold at a price of $14 could have been sold? A) $6. B) $8. C) $10. D) $12.

20. Which of the following pairs of goods are considered substitutes? A) Snowboards and wax. B) Coffee and muffins. C) Insulin and mouthwash. D) Margarine and butter.

21. Two goods are complements if: A) a decrease in the price of one causes more of the other to be consumed. B) they are consumed together. C) an increase in the price of one causes less of the other to be consumed. D) all of the above.

22. Suppose that the demand for widgets is price inelastic. We know that the numerical value for the price elasticity coefficient is: A) greater than one. B) equal to one. C) greater than zero but less than one. D)

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