Economic Final Exam Sample

Topics: Costs, Marginal cost, Variable cost Pages: 31 (3689 words) Published: March 27, 2013
Name: ________________________ Class: ___________________ Date: 9. December 2009

ID: A

Final Exam - Microeconomics

General Instructions:
Calculators and rulers are allowed.
You are not allowed to have any cell phones with you during the exam. That is, you may not use your cell phone as a calculator. In fact, you may not use any device other than a calculator (scientific calculators are allowed). This is a closed book and closed notes exam.However, you may have with you one page (both sides) with your notes on it. Multiple Choice

Identify the letter of the choice that best completes the statement or answers the question.
HAVE A GREAT WINTER BREAK!!!
Figure 5-5

____ 25. Refer to Figure 5-5. An increase in price from \$30 to \$35 would a. decrease total revenue by \$250.
b. increase total revenue by \$250
c. increase total revenue by \$500.
d. decrease total revenue by \$500.
1

Name: ________________________

ID: A

____ 26. Refer to Figure 5-5. When price falls from \$50 to \$40, it can be inferred that demand between those two prices is
a. elastic, since total revenue increases from \$5,000 to \$8,000. b. unit elastic, since total revenue increases from \$5,000 to \$8,000. c. inelastic, since total revenue decreases from \$8,000 to \$5,000. d. inelastic, since total revenue increases from \$5,000 to \$8,000. ____ 27. Refer to Figure 5-5. When the price is \$30, total revenue is a. \$3,000.

b. \$7,000.
c. \$5,000.
d. \$9,000.
____ 28. Refer to Figure 5-5. An increase in price from \$20 to \$30 would a. decrease total revenue by \$1,000.
b. increase total revenue by \$2,000.
c. decrease total revenue by \$2,000.
d. increase total revenue by \$1,000.
Table 13-7
Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for \$600 a month and has leased computer equipment that costs \$480 a month. Output

(Instructional
Modules
per Month)

0
1
2
3
4
5
6
7
8
9
10

Variable
Costs

1,080
1,080

400

Average
Variable
Cost

Marginal
Cost

400
450

1,480

1,350
1,900
2,500

Average
Fixed
Cost

Total
Cost

Average
Total
Cost

965

Fixed
Costs

2,430
475
216
4,280

700

4,100
5,400
7,300

135
10,880

980

____ 29. Refer to Table 13-7. One month, Teacher's Helper produced 18 instructional modules. What was the average fixed cost for that month?
a. \$108
b. \$811
c. \$60
d. It can't be determined from the information given.

2

Name: ________________________

ID: A

____ 30. Refer to Table 13-7. What is the marginal cost of creating the tenth instructional module in a given month? a. \$3,060
b. \$2,500
c. \$1,250
d. \$900
____ 31. Refer to Table 13-7. What is the average variable cost for the month if six instructional modules are produced?
a. \$180.00
b. \$713.33
c. \$700.00
d. \$533.33
____ 32. Refer to Table 13-7. What is the average fixed cost for the month if nine instructional modules are produced? a. \$108.00
b. \$120.00
c. \$811.11
d. \$150.00
Figure 13-6
The curves below reflect information about the cost structure of a firm.

____ 33. Refer to Figure 13-6. Which of the curves is most likely to represent average variable cost? a. C
b. A
c. D
d. B
____ 34. Refer to Figure 13-6. Which of the curves is most likely to represent average total cost? a. D
b. A
c. B
d. C

3

Name: ________________________

ID: A

____ 35. Refer to Figure 13-6. Which of the curves is most likely to represent average fixed cost? a. D
b. B
c. C
d. A
____ 36. Refer to Figure 13-6. Which of the curves is most likely to represent marginal cost? a. D
b. B
c. A
d. C
Scenario 14-2
Assume a certain firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals \$15 and its average total cost equals \$11. The firm sells its output for \$12 per unit. ____ 37. Refer to...