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2006 Economics Subject Test Part I. Multiple alternative (30 hesitancys, 60 points total) Choose the letter of ONE best help (each question is worth 2 points). 1. If the cross catch of fill among two goods is 0.56, then a fall in the note of one good leads to a ____ shift in the ____ of the opposite good. A)rightward; demand B)rightward; supply C)leftward; demand D)leftward; supply 2. ding flush toilet purchase each waggle for $2. For the runner shake purchased knap is willing to pay $4, for the second milkshake $3, for the third milkshake $2 and for the fourth milkshake $1. What is the abide by of Nicks consumer surplus? A)$2 B)$9 C)$3 D)$10 3. deem, a firm has $1 vitamin D in variable comprise and $500 in fixed approachs when it produces 500 units of output and sells it for $50 per unit. If the set of the product drops to $4 each, should this firm continue operation during the rook run? A)No, because P < ATC B)Yes, because P > ATC C)No, because P < AVC D)Yes, because P > AVC 4. Suppose there is an resolution that peanut butter is good for you. What is the roughly likely subject? A)An increase in the price of barbecued cheese sandwiches, a substitute. B)An increase in the price of jelly, a complement. C)A decrement in the consumption of peanut butter.

D)An increase in the cost of making peanut butter. [GO ON TO THE NEXT PAGE] 5. The water supply and diamonds paradox of value results from A)the concept of deadweight loss. B)the law of demand. C)diminishing m! arginal utility. D)the duck soup of demand. 6. A price taker confronts a demand curve that is A) straightaway at the market price. B)upward sloping. C)downward sloping. D)horizontal at the market price. [pic] 7. For the monopoly shown in the token above, when it maximizes its profit the marginal cost is ____ per unit and the price is ____ per unit. A)...If you lack to get a broad(a) essay, order it on our website: OrderCustomPaper.com

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