ECON103 D100 Midterm1A Summer2013
Simon Fraser University
ECON 103-D100: Principles of Microeconomics
Instructor: Iryna Dudnyk
Summer 2013
MIDTERM EXAM 1
Version A
FULL NAME:
STUDENT ID:
Your TA is (circle one)
YASER
CHUKU
TUTORIAL SECTION:
INSTRUCTIONS: you have 1 hour 30 minutes to complete the exam. Write all your answers in the space provided; any work on the back pages will be given zero credit. You can write in either pen or pencil. If you write in pencil your exam cannot be regraded.
The exam has 6 pages and 2 sections:
15 multiple choice questions
5 written answer questions
MC
WRITTEN PART
TOTAL
1
I. MULTIPLE CHOICE. 15 questions, each question is worth 1 point. Circle only one answer that you think is the best.
1. At price P = 5.00 a firm sells Q = 3, 000 units. The absolute value of price elasticity of demand for this product is 1.5. If this firm charges price 5.20 it will sell Q =
.
(A) 3,080
(B) 2,920
(C) 3,006
(D) 2,820
(E) 3,180
2. When Ana’s income was 1,000 per week she was consuming 10 liters of milk weekly. When her income decreased by 50 dollars she was consuming 11 liters of milk per week. Ana’s income elasticity of demand is
(A) -50.
(B) 50.
(C) 2.
(D) -2.
(E) -0.5.
3. Demand for public transit will increase when
(A) price of gas falls.
(B) price of transit fares falls.
(C) cars become more expensive.
(D) price of transit fares increases.
(E) (B) and (C)
4. John has a lunch box with 5 apples and 4 cookies, denote (5, 4). He is indifferent between this bundle and bundles (6, 2) and (4, 7). John’s classmates established relative Papple = 4 cookies. At this price some classmates are willing to ‘buy’ cookies and others are willing to ‘buy’ apples. John
(A) should not trade with anyone because relative price is not equal to his MV.
(B) is indifferent between eating his lunch and trading with his classmates.
(C) will be better off if he buys an apple at this relative price.
(D) will be better off if he buys a cookie at this relative price.
5. When consumers choose the
ECON 103-D100: Principles of Microeconomics
Instructor: Iryna Dudnyk
Summer 2013
MIDTERM EXAM 1
Version A
FULL NAME:
STUDENT ID:
Your TA is (circle one)
YASER
CHUKU
TUTORIAL SECTION:
INSTRUCTIONS: you have 1 hour 30 minutes to complete the exam. Write all your answers in the space provided; any work on the back pages will be given zero credit. You can write in either pen or pencil. If you write in pencil your exam cannot be regraded.
The exam has 6 pages and 2 sections:
15 multiple choice questions
5 written answer questions
MC
WRITTEN PART
TOTAL
1
I. MULTIPLE CHOICE. 15 questions, each question is worth 1 point. Circle only one answer that you think is the best.
1. At price P = 5.00 a firm sells Q = 3, 000 units. The absolute value of price elasticity of demand for this product is 1.5. If this firm charges price 5.20 it will sell Q =
.
(A) 3,080
(B) 2,920
(C) 3,006
(D) 2,820
(E) 3,180
2. When Ana’s income was 1,000 per week she was consuming 10 liters of milk weekly. When her income decreased by 50 dollars she was consuming 11 liters of milk per week. Ana’s income elasticity of demand is
(A) -50.
(B) 50.
(C) 2.
(D) -2.
(E) -0.5.
3. Demand for public transit will increase when
(A) price of gas falls.
(B) price of transit fares falls.
(C) cars become more expensive.
(D) price of transit fares increases.
(E) (B) and (C)
4. John has a lunch box with 5 apples and 4 cookies, denote (5, 4). He is indifferent between this bundle and bundles (6, 2) and (4, 7). John’s classmates established relative Papple = 4 cookies. At this price some classmates are willing to ‘buy’ cookies and others are willing to ‘buy’ apples. John
(A) should not trade with anyone because relative price is not equal to his MV.
(B) is indifferent between eating his lunch and trading with his classmates.
(C) will be better off if he buys an apple at this relative price.
(D) will be better off if he buys a cookie at this relative price.
5. When consumers choose the