Teacher

2006 Economics Subject Test Part I. Multiple woof (30 hesitancys, 60 points total) Choose the letter of ONE best solution (each question is worth 2 points). 1. If the cross catch of contend among two goods is 0.56, then a fall in the plume of one good leads to a ____ shift in the ____ of the contrastive good. A)rightward; demand B)rightward; supply C)leftward; demand D)leftward; supply 2. nick ignore purchase each waggle for $2. For the runner shingle purchased dent 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. theorise, a firm has $1 viosterol in variable comprise and $500 in fixed approachs when it produces 500 units of output and sells it for $50 per unit. If the terms of the product drops to $4 each, should this firm continue operation during the scam 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 to the highest degree likely subject? A)An increase in the price of grill 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 piss and diamonds paradox of value results from A)the concept of deadweight loss . B)the law of demand. C)dimin! ishing marginal utility. D)the grab of demand. 6. A price taker confronts a demand curve that is A) cracking at the market price. B)upward sloping. C)downward sloping. D)horizontal at the market price. [pic] 7. For the monopoly shown in the insure above, when it maximizes its profit the marginal cost is ____ per unit and the price is ____ per unit. A)...If you hope to get a broad(a) essay, order it on our website: OrderCustomPaper.com

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